Property Taxes in Vermont
Vermont's property tax runs real, current, and genuinely among the highest of any US state -- a statewide effective rate this record anchors at 1.51% (Tax Foundation's 2026 ranking, 4th highest in the nation), layered with a genuinely distinctive statewide homestead/nonhomestead education-property-tax system that means the real rate a specific owner pays varies meaningfully by town.
Exploring the idea of moving?
We can connect you with a local real estate professional who knows the area -- no pressure, just a starting point.
Learn moreA genuinely high statewide rate, 4th highest in the nation
Tax Foundation's own 2026 ranking cites Vermont's effective property tax rate on owner-occupied housing at 1.51%, the 4th highest in the nation (behind New Jersey and Illinois, both at 1.88%, and Connecticut at 1.54%) -- with Tax Foundation separately noting Vermont property taxpayers face the highest effective rate of taxation as a share of personal income of any state, and per-capita property tax collections (approximately $3,178) among the highest in the country. Other 2026 sources reviewed cited a real, disclosed wider spread: TaxByCounty approximately 1.70%, PropertyTaxPeek approximately 1.59%, and secondary aggregators commonly citing 1.83%-1.90%. This record anchors on the Tax Foundation figure (1.51%) for cross-state comparability while disclosing the real, wider 1.42%-1.90% spread honestly.
A genuinely distinctive statewide homestead/nonhomestead education-tax system
Vermont funds K-12 education through a real, current, statewide DUAL-RATE system layered atop the general property tax picture above. Homestead property (a Vermont resident's primary, owner-occupied residence, declared annually via Form HS-122 by an April 15 deadline) is taxed at a LOCALLY-VOTED rate reflecting what each town's voters approved for school spending, while Nonhomestead property (commercial property, second homes, camps, and summer cottages -- the default classification for anything not affirmatively declared as a homestead) is taxed at a single, uniform statewide rate, set for FY2026 at $1.703 per $100 of equalized education property value. Both rates are further adjusted town-by-town via a Common Level of Appraisal (CLA) and a statewide adjustment factor, meaning the real, effective rate a specific property owner pays varies meaningfully by town -- confirm your target town's current combined rate directly rather than budgeting off any single statewide figure. FY2026 education property tax bills were projected to rise a real, disclosed statewide average of 5.9% year-over-year, per the Vermont Dept. of Taxes.
Second-home and camp owners pay the nonhomestead rate -- a real consideration for ski-country buyers
Because the nonhomestead classification applies by default to anything not affirmatively declared as a Vermont resident's primary homestead residence, a buyer of a second home or camp -- including in Vermont's real, substantial ski-tourism corridor (Stowe, Killington, Sugarbush/the Mad River Valley, Okemo, Stratton, Mount Snow, and Jay Peak) -- should expect to pay the uniform statewide nonhomestead education tax rate (FY2026: $1.703 per $100 of equalized education property value) rather than a locally-voted homestead rate. See the buying-a-home topic for the fuller second-home-specific disclosure.
What this means alongside Vermont's other real, current taxes
Vermont's high property tax burden sits alongside a real, graduated income tax topping out at an 8.75% top marginal rate, and a general sales tax (6.00%-7.00% combined) that runs close to the national average -- see the income-taxes and sales-tax topics for the fuller picture. Vermont's overall tax structure represents a real, disclosed, genuinely high-tax picture this record does not soften, even as it credits Vermont's real strengths in crime, healthcare access, and job-market conditions elsewhere in this dataset.
Key takeaways
- Vermont's statewide effective property tax rate runs approximately 1.51% (Tax Foundation, 4th highest in the nation), with a real, disclosed wider cross-source spread up to approximately 1.90%.
- Vermont funds K-12 education through a distinctive statewide homestead/nonhomestead dual-rate system -- homestead rates are locally voted per town, while the nonhomestead rate is uniform statewide (FY2026: $1.703 per $100 of equalized education property value).
- FY2026 education property tax bills were projected to rise a real, disclosed statewide average of 5.9% year-over-year -- confirm your target town's current combined rate directly rather than budgeting off any single statewide figure.
- Second homes and camps -- including in Vermont's ski-tourism corridor -- default to the nonhomestead classification and its uniform statewide education tax rate, a real consideration for ski-country buyers.
Want to know what your budget actually buys here?
Tell us a bit about what you're looking for and we'll connect you with someone local who can walk you through real numbers.
Get local guidanceRead the full Vermont overview for the complete picture, or explore individual cities and towns we've researched.
Planning a move?
Tell us what you're looking for and we'll connect you with a local expert who can help you make it happen.
Talk to a local expert