Quick answer
The median Vermont home ($352,800) costs about $2,884 a month with 10% down at the 7.24% national average rate, and $417 of that is property tax — the effective rate of 1.42% is above the national 0.89%. At closing, the buyer owes Vermont’s property transfer tax: on a principal residence, 0.5% of the first $200,000 and 1.47% above it, or about $3,246 on the median home. Buying with VHFA financing exempts the first $250,000.
Key facts
$352,800
Median home value in Vermont
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
1.42%
Effective property tax rate
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
$5,026/yr
Median property tax bill
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
0.5%
Transfer tax on the first $200,000 of a principal residence
Vermont Department of Taxes · Oct 28, 2026
1.47%
Transfer tax above that (incl. Clean Water Surcharge)
Vermont Department of Taxes: Property Transfer Tax · Oct 29, 2026
$250,000
Exempt with VHFA, CVTF or USDA financing
Vermont Department of Taxes: Property Transfer Tax · Oct 29, 2026
73.2%
Homes lived in by their owners
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
Vermont’s property transfer tax is the buyer’s bill
Vermont puts its property transfer tax on the buyer. The Department of Taxes’ instructions say plainly that the transferee is liable for the tax, which is due at the time of transfer and paid directly to the Department. The rate depends on how the property will be used and financed. As the Department lists them:
| Purchase | Rate |
|---|---|
| Principal residence | 0.5% on the first $200,000; 1.47% on value above that |
| Principal residence bought with VHFA, CVTF or USDA assistance | First $250,000 exempt; 1.47% on value above that |
| Home fit for year-round use that isn’t a principal residence or long-term rental | 3.62% |
The higher rates include the Clean Water Surcharge, which the Department does not apply to the first $200,000 of a principal residence or the exempt part of an assisted purchase. To get the principal-residence rate, you must be an individual (or your revocable trust) who will use the home as your principal residence.
Transfer tax on the median Vermont home ($352,800)
| How you buy it | Tax |
|---|---|
| As your principal residence | $3,246 |
| As your principal residence, with VHFA financing | $1,511 |
| As a second home | $12,771 |
For a principal residence, the tax works out to about 0.92% of the price on the median home. Budget it as cash to close on your side of the Closing Disclosure.
Paying for the median Vermont home
$352,800 home (Vermont median value), 10% down, 30-year fixed at 7.24%
| Part of the payment | Monthly |
|---|---|
| Principal and interest on $317,520 | $2,164 |
| Property tax at 1.42% a year | $417 |
| Homeowners insurance at $4.90 per $1,000 of value (national average) | $144 |
| PMI (midpoint of Freddie Mac’s range) | $159 |
| Total | $2,884 |
Property tax is 14% of this payment.
The insurance line uses Freddie Mac’s national average premium per $1,000 of value; winter weather and an older roof or heating system can change a Vermont quote, so price the specific house. The mortgage payment calculator opens with these numbers.
Vermont property taxes and the annual Homestead Declaration
The median Vermont homeowner pays $5,026 a year in property tax, the 8th-highest amount among the 50 states and DC, and the effective rate of 1.42% is the 6th-highest. Every bill includes the state education property tax, which has separate rates for homesteads and for all other property.
That is why the Homestead Declaration matters. If the home is your Vermont residence, you must file a declaration with the Department of Taxes every year by the April filing deadline. File late and you can owe a penalty; miss the final deadline in October and the home is classed as nonhomestead, so you pay the higher of the two education rates plus penalty and interest. The same filing is the starting point for the Vermont property tax credit, which is based on household income.
Income needed for a Vermont home
At Vermont’s median household income of $82,730, Freddie Mac’s guideline of keeping housing under 30% of gross income allows $2,068 a month. With 10% down at today’s average rate and Vermont’s tax ratio, that supports a home of about $253,000 — $99,800 less than the median home value. Buying the median home within the guideline takes about $115,000 a year. Compare your own numbers in the affordability calculator.
VHFA’s ASSIST loan and First Generation grant
The Vermont Housing Finance Agency offers its MOVE, MOVE MCC and ADVANTAGE mortgages through participating lenders, with minimum credit scores from 640 depending on the program. Two kinds of help sit on top:
| Help | Amount | Terms |
|---|---|---|
| ASSIST | Up to $10,000 | 0% deferred loan, no monthly payments, repaid when you sell, refinance or pay off the mortgage; with MOVE only, not with a VA loan; for buyers who have never owned a home and have limited liquid assets |
| First Generation Homebuyer Grant | $15,000 | For down payment and closing costs, with MOVE, MOVE MCC or ADVANTAGE; for buyers who have never owned a home, where a buyer was in foster care or has parents or guardians who never owned a home or lost one to foreclosure |
VHFA financing also changes the transfer tax: the exemption on the first $250,000 saves about $1,735 on the median home compared with a principal residence bought without that assistance. Ask a VHFA participating lender which options are open; see down payment grants for how grants and deferred loans differ.
Vermont’s housing stock and who owns it
In Vermont 73.2% of occupied homes are owner-occupied, the 5th-highest share in the country, against 65.3% nationally. The housing is older than the US median — the median home was built in 1977 — so heating systems, insulation, wells and septic systems deserve a close look in the home inspection. Closing costs beyond the transfer tax follow the CFPB’s typical 2%–5% of the price ($7,056–$17,640 here); the closing cost calculator adds Vermont’s tax for you.
Frequently asked questions
Who pays the property transfer tax in Vermont?
The buyer. The Vermont Department of Taxes’ instructions state that the transferee is liable for the property transfer tax, which is due at the time of transfer and paid directly to the Department.
How much is the Vermont property transfer tax?
For a principal residence, 0.5% of the first $200,000 and 1.47% of value above that — about $3,246 on the median $352,800 home. A year-round home that isn’t your principal residence is taxed at 3.62%.
Is there a transfer tax break when buying with VHFA?
Yes. When a principal residence is bought with VHFA, CVTF or USDA assistance, the first $250,000 of value is exempt and the rest is taxed at 1.47%.
What is the property tax rate in Vermont?
Census data put the median Vermont homeowner’s bill at $5,026 a year, an effective rate of about 1.42% of home value against 0.89% nationally.
Do I need to file a Homestead Declaration every year in Vermont?
Yes. If the home is your Vermont residence, file the declaration with the Department of Taxes annually by the April deadline. Without it the home is classed as nonhomestead, and you pay the higher of the two education rates plus penalties.
Does Vermont offer down payment assistance?
VHFA’s ASSIST loan offers up to $10,000 as a 0% deferred loan with its MOVE mortgage, and its First Generation Homebuyer Grant provides $15,000 to eligible first-generation buyers.
Sources
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Median value of owner-occupied homes (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Median household income (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- Freddie Mac Research — Average homeowners insurance premium per $1,000 of home value (2023 data)
- Freddie Mac My Home — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- Freddie Mac My Home — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- Vermont Department of Taxes: Property Transfer Tax — Vermont principal-residence transfer tax: 0.5% rate applies to the first; State real estate transfer tax; Vermont property transfer tax on principal-residence value above the first $200,000 (1.25% plus 0.22% Clean Water Surcharge) (Oct 29, 2026)
- CFPB — Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- Vermont Housing Finance Agency: Homebuyer Programs — VHFA minimum credit score (640–680 depending on program), from; VHFA ASSIST down payment and closing-cost loan, up to; VHFA First Generation Homebuyer Grant (Oct 29, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Median year homes were built (2024 ACS 1-year)
- Vermont Department of Taxes: Form PTT-172 instructions
- Vermont Department of Taxes: Homestead Declaration
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.