How is property tax calculated in Vermont?

Vermont property tax has two parts: a statewide education tax with separate homestead and non-residential rates, and a local municipal tax for town services. Each is charged per $100 of assessed value. The combined effective rate averages around 1.83% statewide, among the higher property tax burdens in the US.

What's the difference between homestead and non-residential rates?

Homestead property is your declared primary residence and is taxed at the homestead education rate, which averages about $1.50 per $100. Non-residential property — second homes, rentals, and commercial property — uses the non-residential education rate, averaging about $1.59 per $100. The municipal rate is the same for both.

What is the Vermont income-based property tax credit?

Many Vermont resident homesteaders pay the education portion of their property tax based on household income rather than property value, through the property tax credit on Form HS-122 / HI-144. When income-based tax is lower than the value-based amount, the household pays the smaller figure, which can substantially reduce the bill for lower- and middle-income owners.

What is the Common Level of Appraisal (CLA)?

The CLA adjusts each town's education tax rate so that towns whose assessed values lag market value still contribute fairly to statewide education funding. Because of the CLA, the actual education rate applied in your town can differ from the statewide average. This estimator uses averages, so enter your town's rate for precision.

How accurate is this estimate?

It's a planning estimate using statewide-average rates. Your real bill depends on your town's specific education and municipal rates, the CLA, any local agreements, and whether you qualify for the income-based credit. Use your town's grand list and tax bill, or tax.vermont.gov, for exact figures.

Vermont Property Tax Estimator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

Vermont property tax is unusual because most of it is a statewide education tax rather than a purely local levy. Each parcel pays an education rate — different for homestead versus non-residential property — plus a municipal rate for town services. This estimator combines both and lets resident homesteaders apply the income-based credit that often lowers the bill.

How it works

Each component is charged per $100 of assessed value:

Education tax = (Value ÷ 100) × Education rate Municipal tax = (Value ÷ 100) × Municipal rate Total = Education tax + Municipal tax

For a resident homestead, the education portion can instead be based on household income (about 2% of income), and Vermont charges whichever amount is lower:

Education tax (homestead) = min(value-based, income-based)

Vermont specifics

Homestead education rate averages about $1.50 per $100; non-residential about $1.59 per $100.
Municipal rate varies by town, averaging around $0.55 per $100.
Common Level of Appraisal (CLA) adjusts each town’s education rate, so your local rate may differ from the average.
Income-based credit lets many homesteaders cap the education tax at roughly 2% of household income.

Worked example

A $350,000 homestead at the average rates:

Education tax = (350,000 ÷ 100) × 1.50 = $5,250
Municipal tax = (350,000 ÷ 100) × 0.55 = $1,925
Total ≈ $7,175/year (effective rate ≈ 2.05% before any income credit)

If the household earns $60,000, the income-based education portion is roughly 60,000 × 2% = $1,200, which is lower than $5,250, so the credit substantially reduces the bill.

Note: Default rates are statewide averages. Your town’s education and municipal rates and the CLA differ — enter them for a precise estimate. Verify at tax.vermont.gov.