Vermont Property Tax Overview

Keywords: Vermont property tax, property tax in Vermont, Vermont property tax rate

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Key Statistics (2026)

*Effective property tax rate = median annual property tax ÷ median home value.

Source: According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023).

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Sample Property Tax Bills

These figures are calculated by applying the statewide average effective tax rate of 1.71 % to the indicated home values. Actual bills may differ because local jurisdictions set their own rates.

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Variation by County and Municipality

Property tax rates in Vermont are determined at the town, city, or county level. Consequently:

• Some towns levy higher millage rates to fund schools, road maintenance, or local services.
• Others have lower rates, especially in rural areas with smaller assessed property bases.

Homeowners should consult the tax assessor’s office of the specific municipality for the exact millage rate applied to a given property.

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Comparison to the National Average

• Effective rate: Vermont’s 1.71 % effective property tax rate exceeds the national average of 0.97 % by roughly 76 %.
• Ranking: With a rank of 48 out of 52 states and territories, Vermont has one of the highest effective property tax rates in the United States.

The higher rate reflects Vermont’s reliance on property taxes to fund local education and municipal services, as the state does not have a broad-based sales tax on many goods.

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Considerations for Retirees

• Tax burden: Retirees owning a home in Vermont can expect property tax bills that are above the national average, based on the 1.71 % effective rate.
• Exemptions & credits: Vermont offers a Senior Property Tax Deferral Program and limited property tax relief for low‑income seniors, which can reduce the net tax payable. Eligibility depends on age, income, and residency duration.
• Cost of living: The median home value of $290,500 is lower than many New England states, but the higher tax rate offsets some of the price advantage.

Overall, retirees should evaluate both the purchase price and the ongoing property tax obligations when assessing affordability.

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Considerations for Landlords

• Revenue vs. expense: Rental property owners must factor the higher effective tax rate into operating costs. A $250,000 rental property would generate an additional $4,265 in annual tax expense, while a $500,000 property would incur about $8,530.
• Tax deductions: Property taxes are generally deductible for federal income‑tax purposes, which can mitigate the cash‑flow impact for landlords.
• Local variations: Because tax rates differ by municipality, landlords can achieve lower tax expenses by purchasing rental properties in towns with lower millage rates.

Landlords should incorporate the state’s effective property tax rate into any cash‑flow or return‑on‑investment analysis.

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Frequently Asked Questions

1. How is the effective property tax rate calculated?
The effective rate is the median annual property tax divided by the median home value. For Vermont, the 2023 ACS data give a median tax of $4,956 and a median home value of $290,500, resulting in an effective rate of 1.71 %.

2. Do property tax rates differ between counties?
Yes. Vermont’s property taxes are set by individual towns and cities rather than by county or state. Millage rates can vary widely, so two homes of equal value in different municipalities may have different tax bills.

3. Are there any programs that reduce property taxes for seniors?
Vermont offers a Senior Property Tax Deferral Program that allows eligible homeowners aged 65 or older to defer a portion of their property taxes. The program has income and equity limits, and participants must meet residency requirements. Details are available from the Vermont Department of Taxes.

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All monetary values are expressed in U.S. dollars and are based on the most recent ACS estimates (2026). Actual tax bills may differ due to local millage rates, assessment practices, and available exemptions or credits.