Property Taxes in Vermont
Vermont's effective property tax rate is 1.42%, ranking #46 out of 50 states (1 = lowest). The median annual property tax paid is $4,915.
Vermont's property tax rates are among the highest in the nation, driven by the cost of funding schools in a rural state with small class sizes and a declining student population. The state uses an income-based property tax adjustment through the income tax return that effectively caps property taxes at a percentage of household income for qualifying residents. The statewide education property tax rate is set by the legislature, and towns add their municipal tax rate on top. There is no traditional homestead exemption, but the income-based adjustment serves a similar function for many homeowners.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Tax Foundation, U.S. Census
Tax Rate
1.42%
Median Annual Tax
$4,915
National Rank
#46 of 50
1 = lowest
Homestead Exemption
Yes
Annual Property Tax by Home Price
| Home Price | Annual Tax | Monthly |
|---|---|---|
| $200,000 | $2,840 | $237 |
| $300,000 | $4,260 | $355 |
| $400,000 | $5,680 | $473 |
| $500,000 | $7,100 | $592 |
| $750,000 | $10,650 | $888 |
* Based on the average effective rate of 1.42%. Actual rates vary by county and municipality.
Homestead Exemption in Vermont
Up to $125,000
File for the homestead exemption after purchasing your primary residence in Vermont to reduce your assessed property value, lowering your annual tax bill. Contact your county assessor's office for the application.
How Vermont Compares
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