Vermont property tax: how it works and the homestead rate

Who sets what you owe?

Two layers set the bill, and both apply to the same listed value.

• Local listers or an assessor appraise each property at fair market value, as of April 1. Burlington has a city Assessor’s Office for this.
• The municipality sets its own rate at town or city level to raise local money.
• The state sets the education tax. The Legislature fixes the statewide nonhomestead rate ($1.643 per $100 for FY2027) and a “yield” that drives the homestead rate.

A town’s homestead school rate depends on what its school districts vote to spend per pupil. The state then divides by the town’s CLA ÷ SA, a ratio that corrects for how close local values are to market prices. For Burlington in FY2027 the state shows a CLA of 76.25%, a statewide adjustment of 70.33%, a ratio of 1.0842, a district rate of 1.6793 and a final homestead rate of 1.5489.

Fiscal years run July 1 to June 30, so FY2027 is the 2026-2027 tax year.

What is the homestead declaration?

Vermont treats all property as nonhomestead unless the owner declares it a homestead. A homestead is the principal dwelling and the surrounding parcel, owned and occupied by a resident as a domicile (32 V.S.A. § 5401(7)). A second home, camp, vacation home, or a home leased for more than 182 days in the year is nonhomestead.

You file Form HS-122 each year by the Vermont income tax due date, April 15 in 2026, even if you extend your income tax return. The last accepted date was October 15, 2026. A late filing can bring a penalty of up to 3% of the education tax, or up to 8% where the nonhomestead rate is lower than the homestead rate (§ 5410(g)). Burlington is such a town in FY2027, because its nonhomestead education rate (1.5154) is below its homestead rate (1.5489). After the October deadline, the property is billed as nonhomestead.

If you buy and move in by April 1, you file the declaration for the new home. If you sell by April 1, you withdraw yours on Form HS-122W.

What do the rates look like in Burlington?

Source: City of Burlington, which matches the state’s FY2027 rate table. For FY2026 the city lists 1.5264, 0.8557 and 0.0004 for the homestead education, municipal and local agreement rates.

Example. A homestead with a listed value of $400,000 has a grand list value of 4,000 ($400,000 ÷ 100).

That is about 2.459% of listed value. Burlington’s listed values can differ from sale prices, so the listed value of a home you buy may not equal what you paid. The city’s page says values were set as of April 1, 2021. Check the listed value on the city’s parcel record, and use the city’s calculator for estimates. Commercial and rental parts of a property are calculated differently, and you should ask the Assessor.

Is there help paying the tax?

• Property tax credit. Eligible homeowners with household income under the limit ($115,400 for tax year 2025) can claim a credit of up to $5,600 on the education tax and $2,400 on the municipal tax. You claim it on Form HS-122 with Schedule HI-144. The state pays it to the town as an “education state payment.”
• Veterans. Disabled veterans and certain surviving spouses get at least a $10,000 reduction in assessed value, and towns may vote up to $40,000. Apply by May 1 each year.

When a home is sold after April 1, the credit goes to the seller at closing unless the parties agree otherwise, so account for it when prorating taxes. See closing costs in Vermont.

What are the payment dates?

Burlington bills in four installments due on the 12th of August, November, March and June, and mails bills in July. A payment made after June 22 is delinquent and carries a one-time 8% penalty and a $1 warrant fee. There is no discount for early payment. Due dates vary from town to town, according to the Department of Taxes, so check your own town.

How do you appeal a valuation?

In Burlington, you file a written grievance with the Assessor’s Office. The city’s page lists a May 15, 2026 deadline, with hearings in the second half of May, and says the online form reopens in February 2027. If the Board of Assessors rules against you, you have 14 days from the date of the decision letter to appeal to the Board of Tax Appeals. Then you may appeal to the Vermont Department of Taxes or the Superior Court within 30 days, with a $70 entry fee for a Department appeal (32 V.S.A. § 4461).

The taxpayer must offer credible evidence that the value exceeds market value or is out of line with similar properties. Abatement is a different process, used for hardship or error, and does not replace a valuation appeal.

For the city picture, see the Burlington guide. Lenders may collect the tax monthly through an escrow account.