Vermont property tax rates by town vary widely because each municipality sets its own budget and the state adjusts each town’s education rate based on local school spending and how closely its property assessments track actual market values. For fiscal year 2026, the statewide nonhomestead education rate is $1.703 per $100 of value and the homestead base rate is $1.00 per $100, but neither number is what your town actually charges. Both get modified by your town’s Common Level of Appraisal, and then your town’s own municipal rate is added on top. The Vermont Department of Taxes publishes the complete FY2026 rate table by town each summer on its education rates page.1Vermont Department of Taxes. Education Property Tax Rates
The Two Pieces of Every Vermont Tax Bill
Every Vermont property tax bill combines a municipal rate and an education rate. The municipal portion funds local services like road maintenance, fire protection, and town administration, and voters approve those budgets at annual town meetings. The education portion flows into a statewide Education Fund established under state law.2Vermont General Assembly. Vermont Code 16 – Education Fund
The education rate you pay depends on whether your property is classified as a homestead or a nonhomestead. A homestead is the principal dwelling and surrounding land you own and occupy as your permanent home.3Vermont General Assembly. Vermont Code 32 – Definitions Mobile homes qualify. A unit in a multi-family building qualifies if you live in it. If more than 25 percent of your home’s floor space is used for business, that business portion loses homestead status. Second homes, rental properties, commercial buildings, and vacant land are all nonhomestead.
How the 2026 Education Rate Is Calculated for Your Town
For fiscal year 2026, the Vermont legislature set the statewide nonhomestead education tax rate at $1.703 per $100 of property value.4Vermont Department of Taxes. Education Tax Rate Calculations – Frequently Asked Questions The homestead side works differently. Rather than one flat rate, the state sets a “property dollar equivalent yield” — $8,596 for 2026 — that ties each town’s homestead rate to how much the town spends per pupil.5Vermont General Assembly. An Act Relating to Setting the Homestead Property Tax Yields and the Nonhomestead Property Tax Rate (No. 24) A town that spends more per student ends up with a higher homestead rate than one that spends less.
Neither the $1.703 nor the $1.00 base is what appears on your bill. Both are divided by your town’s Common Level of Appraisal ratio, adjusted by a statewide factor. The formula for your town’s final homestead education rate is $1.00 divided by (CLA ÷ statewide adjustment); the nonhomestead formula uses $1.703 the same way.4Vermont Department of Taxes. Education Tax Rate Calculations – Frequently Asked Questions
The range across towns is substantial. For 2026, Albany’s homestead education rate is $1.5360 per $100 while Addison’s is $1.7408 — a gap of more than $0.20 per $100 on two towns picked from near the front of the alphabet.1Vermont Department of Taxes. Education Property Tax Rates To find your town, download the FY2026 rate table from the Department of Taxes; each row lists the homestead rate, the nonhomestead rate, and the CLA used to derive them.
The published table shows only the education portion. For your total rate, add your town’s municipal rate, which most town websites or clerk offices post after Town Meeting Day. Multiply the combined rate by your assessed value divided by 100 for your approximate annual bill before any credits.
Why Neighboring Towns End Up With Different Rates
The Common Level of Appraisal
The Common Level of Appraisal, or CLA, is the biggest reason two neighboring towns can show very different rates on paper. The state calculates each town’s CLA by comparing what properties are listed at on the town’s Grand List to what those same properties actually sell for. When assessments sit well below market value — say homes are listed at 70 percent of what buyers are paying — the CLA drops below 100 percent and the education rate is adjusted upward to compensate.6Vermont General Assembly. Vermont Code 32 – Determination of Equalized Education Property Tax Grand List and Coefficient of Dispersion
A town that reappraises regularly and keeps its listed values close to market will have a CLA near 100 percent and a rate close to the base. A town that hasn’t reappraised in years will see its effective rate climb, sometimes sharply. Owners in those towns are not paying more total tax than they should; the CLA simply corrects the math so under-assessed properties still contribute their share to the Education Fund.
The Grand List and Municipal Spending
The Grand List is the total assessed value of taxable property in a town. When a town sets its municipal budget, the rate is essentially that budget divided by the Grand List. A town with a large commercial base or high-value residential property can raise the same revenue at a lower rate than a small town with modest property values. If a major employer closes and its property loses value, the municipal rate has to rise for the remaining owners to cover the same costs. That is why some rural towns with limited commercial property carry higher municipal rates even when their budgets are modest in absolute dollars.
Filing Your Homestead Declaration
You must file Form HS-122 with the Vermont Department of Taxes every year to have your property taxed at the homestead education rate.7Vermont Department of Taxes. Homestead Declaration This is not a one-time filing. Skip it and your home defaults to the nonhomestead rate, which is higher in most towns.
The 2026 deadline is April 15, 2026.8Vermont Department of Taxes. Form HS-122 Instructions – 2026 Homestead Declaration and Property Tax Credit You’ll need your 11-digit School Property Account Number (SPAN), which appears on your property tax bill.9Vermont Department of Taxes. Your Vermont Property Tax Bill The Department of Taxes has an online SPAN finder if you can’t find your bill. The form also asks for residency dates confirming you occupied the home as your primary residence.
Filing late doesn’t disqualify you, but the town can impose a penalty. Where the nonhomestead rate is higher than the homestead rate, the penalty can reach 3 percent of the education tax on the property. Where the nonhomestead rate is lower than the homestead rate — which happens in some towns — the penalty can reach 8 percent.10Vermont General Assembly. Vermont Code 32 – Declaration of Homestead Whether the town actually imposes the penalty is up to the local governing body.
Act 127’s Cap on Homestead Rate Increases
Vermont passed Act 127 in 2022 to change how education spending translates into property tax rates. During a five-year transition from fiscal year 2025 through fiscal year 2029, any school district whose homestead property tax rate would rise five percent or more in a single year is capped at a five percent increase. The state Education Fund absorbs the difference.11Vermont General Assembly. Act 127 of 2022
The cap applies before the CLA adjustment, so it protects against spending-driven spikes but not against rate increases caused by a declining CLA. It also applies only if the district’s per-pupil spending increase stays under 10 percent from the prior year. Districts above that threshold face a separate tax rate review and lose the cap. The cap phases out after FY2029.
The Property Tax Credit for Homestead Owners
Homestead owners who file Form HS-122 and meet income requirements can claim a credit that directly reduces their tax bill. The credit is based on household income — including Social Security, pensions, and other sources reported on Schedule HI-144, not just wages. For 2026, the maximum credit is $5,600 on the education portion and $2,400 on the municipal portion.12Vermont Department of Taxes. Property Tax Credit
The income ceiling was $115,400 in household income for the 2025 tax year; the 2026 limit had not been published at the time of writing but typically adjusts annually. The credit phases down as income rises, so a household earning $50,000 gets a larger credit than one earning $100,000 on the same property. The Department of Taxes offers an online calculator for 2026 to estimate your credit before filing.12Vermont Department of Taxes. Property Tax Credit
If you don’t file HS-122, you’re not just paying a higher education rate. You’re also locked out of a credit that can be worth thousands of dollars.
If You Think Your Assessed Value Is Wrong
Your bill is the tax rate times your assessed value, so a rate comparison only tells half the story. If your town’s assessed value on your property looks too high compared to what similar homes are selling for, Vermont law gives you a structured way to challenge it. The process starts with a grievance hearing before the town listers. Each town posts its grievance date, typically between mid-May and early June, and you must file your objection in writing by that date. The last date a town can begin grievance hearings is June 19 for smaller municipalities and July 9 for towns with a population of 5,000 or more. If you disagree with the listers’ decision, you have 14 days from written notice to appeal to the town’s Board of Civil Authority.
A $10,000 overvaluation at a combined rate of $2.50 per $100 costs you $250 a year, every year, until you or the town corrects it. Filing a grievance costs nothing.
Where to Look Up Your Town
The FY2026 education property tax rate table, available as a spreadsheet or PDF on the Vermont Department of Taxes education rates page, is the authoritative source for the education portion of your rate.1Vermont Department of Taxes. Education Property Tax Rates For the municipal portion, contact your town clerk or check your town’s website after Town Meeting Day. Adding the two together, applying them to your assessed value, and subtracting any property tax credit you qualify for gets you to the actual number you’ll owe.