Property Taxes in Vermont: Rates, Exemptions, and How They Work (2026)
TL;DR
Vermont property taxes are unique because the education tax is the largest component and is set at the state level. The average effective rate is about 1.73%. Homestead properties are taxed at an education rate based on the school district's spending per pupil, adjusted by the homeowner's income. Non-residential properties pay a flat education rate. The income sensitivity adjustment means lower-income homeowners pay less even on the same property. There is no traditional homestead exemption. Appeal to the local Board of Civil Authority (BCA).
Education Property Tax
Vermont's education property tax is the dominant portion of most tax bills. For homestead properties, the rate is based on:
- The school district's spending per pupil
- The homeowner's household income (for the income-based calculation)
You pay the lower of two calculations: the rate applied to your property value, or a percentage of your household income. Many homeowners end up paying based on income rather than property value.
Non-Residential Rate
Non-residential property (second homes, commercial, rental) pays a flat education rate set annually by the legislature. There is no income sensitivity adjustment for non-homestead properties.
Municipal Taxes
In addition to the education tax, municipalities levy their own taxes for local services. These rates vary by town.
Relief Programs
| Program | Benefit | Who Qualifies |
|---|---|---|
| Income Sensitivity | Education tax capped at percentage of income | Homestead owners with income under threshold |
| Property Tax Credit | Credit on income tax return | Based on income and taxes paid |
Appeal
- Local BCA: File grievance within specified period
- State Appraiser or Director of PVR: Further review
- Superior Court: Judicial appeal
Check your Vermont assessment with our free property tax analyzer.
Frequently Asked Questions
What should I know about property taxes in vermont: rates, exemptions, and how they work (2026)?
Vermont property taxes are unique because the education tax is the largest component and is set at the state level. The average effective rate is about 1.73%. Homestead properties are taxed at an education rate based on the school district's spending per pupil, adjusted by the homeowner's income.
What should I know about education property tax?
Vermont's education property tax is the dominant portion of most tax bills. For homestead properties, the rate is based on:
What should I know about non-residential rate?
Non-residential property (second homes, commercial, rental) pays a flat education rate set annually by the legislature. There is no income sensitivity adjustment for non-homestead properties.
What should I know about municipal taxes?
In addition to the education tax, municipalities levy their own taxes for local services. These rates vary by town.
What should I know about appeal?
Check your Vermont assessment with our free property tax analyzer.