Vermont Mortgage Calculator
Vermont is one of the only states with two legally separate education property tax rates: a homestead rate for owner-occupied primary residences, and a higher nonhomestead rate for everything else. This Vermont mortgage calculator with taxes and insurance models that difference directly, alongside a live estimate of Vermont’s property transfer tax, which is also different depending on whether you’re buying a primary home or a second home.
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Statewide Average Spotlight
This reflects Vermont’s statewide average effective property tax rate, already among the highest in the country. Your actual rate depends heavily on which of the state’s 14 counties, and which town’s per-pupil school spending, applies.
Your Estimated Monthly Payment
Payment breakdown
Balance vs. interest paid over time
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Vermont Property Transfer Tax Estimate
Vermont’s transfer tax is one of the highest in New England, and it depends heavily on whether this is a primary residence. This updates live from your home price, occupancy toggle, and financing checkbox above.
| Component | Rate | Taxable amount | Tax owed |
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What If You Paid Extra Toward Principal?
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Your 5-Year Equity Projection
| Year | Remaining balance | Principal paid | Interest paid | Equity |
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Why Vermont’s Homestead vs. Nonhomestead System Is Unlike Most States
Most states have one property tax rate per town, sometimes with a discount or exemption layered on for owner-occupants. Vermont does it differently: the legislature sets two entirely separate, named statewide base rates every year for the education portion of your tax bill, a lower “homestead” rate for owner-occupied primary residences and a higher “nonhomestead” rate for everything else, including second homes, rentals, and businesses. Each town’s actual homestead rate then gets adjusted based on how much that town’s school district spends per pupil and the town’s Common Level of Appraisal, so two neighboring towns with identical home values can post noticeably different homestead rates depending on local school budgets.
You Have to Actively Claim the Homestead Rate
Unlike states where an owner-occupied discount is applied automatically, Vermont requires you to file a Homestead Declaration (Form HS-122) by April 15 every year you own and occupy the property as your principal residence as of April 1. Miss the deadline and your town can charge a late-filing penalty of 3% to 8% of your education tax, and if you never file, you’ll simply be billed at the higher nonhomestead rate. This is a genuinely easy thing for a first-time Vermont homeowner to miss, so mark the date.
Vermont Property Tax by County
| County | Effective rate | Notes |
|---|---|---|
| Grand Isle | 1.32% | Lowest in the state, Lake Champlain islands |
| Franklin | 1.41% | Northwest corner near the Canadian border |
| Chittenden (Burlington) | 1.51% | Highest median dollar bills, moderate effective rate |
| Lamoille (Stowe) | 1.57% | Ski country, slightly below statewide average |
| Washington (Montpelier) | 1.75% | State capital, above statewide average |
| Rutland | 1.81% | Among the higher effective rates in the state |
| Windsor | 1.84% | Highest effective rate in the state |
Vermont’s Property Transfer Tax, Explained
Vermont’s property transfer tax depends heavily on how you’ll use the property. For a primary residence, the rate is tiered: 0.5% on the first $200,000 of the purchase price and 1.25% on the amount above that, plus a statewide 0.22% Clean Water Surcharge. For a second home or investment property intended for year-round use, the rate jumps to a flat 3.4% of the entire purchase price, roughly double the standard rate. Buyers financing through the Vermont Housing Finance Agency, USDA Rural Development, or a qualifying Homeland Grant can have the first $250,000 of a primary residence purchase exempted entirely. The Property Transfer Tax Estimate above calculates your actual number based on your inputs.
Vermont’s Property Tax Credit (Income Sensitivity)
Vermont runs an income-based credit built directly into the homestead education tax system. If your homestead education tax bill exceeds a set percentage of your household income (currently just over 2% for the applicable program year), the state credits the difference, applied directly to a future year’s tax bill under the label “education state payment.” This is separate from the homestead versus nonhomestead rate itself and is worth investigating with a tax professional if your income is modest relative to your home’s assessed value.
Current Use and Rural Vermont Properties
If you’re considering a property with meaningful acreage of farmland, forest, or open space, Vermont’s Current Use program allows that land to be assessed at its value for agricultural or forestry use rather than its full market development value, which can significantly lower the property tax on rural parcels. This doesn’t apply to your house and homesite itself, only to qualifying working land, and it comes with restrictions on development and a penalty if the land is later withdrawn from the program.
Frequently Asked Questions
What is the difference between Vermont’s homestead and nonhomestead property tax?
Vermont sets two separate education tax rates each year: a homestead rate for owner-occupied primary residences and a higher nonhomestead rate for everything else, including second homes, rentals, and businesses. You must file a Homestead Declaration to claim the homestead rate.
What happens if I miss Vermont’s Homestead Declaration deadline?
The deadline is April 15. Missing it can trigger a penalty of 3% to 8% of your education tax, depending on whether the nonhomestead rate is higher or lower than your homestead rate that year, and your property may be billed at the nonhomestead rate until you file.
How much is Vermont’s property transfer tax?
For a primary residence, 0.5% on the first $200,000 plus 1.25% on the amount above that, plus a 0.22% Clean Water Surcharge. For a second home or year-round rental, a flat 3.4% of the full purchase price applies instead.
Can I avoid Vermont’s property transfer tax?
Buyers financing a primary residence through the Vermont Housing Finance Agency, USDA Rural Development, or a qualifying Homeland Grant can have the first $250,000 of the purchase price exempted from the transfer tax entirely.
Why do Vermont property tax rates vary so much by county and town?
Each town’s homestead education rate depends on how much its school district spends per pupil and the town’s Common Level of Appraisal, so tax rates can differ significantly even between neighboring towns with similar home values.
Is there income-based property tax relief in Vermont?
Yes. Vermont’s Property Tax Credit reduces your homestead education tax bill if it exceeds a set percentage of your household income, applied as a credit on a future year’s bill.
How accurate is this mortgage calculator with taxes and insurance?
The principal and interest math is exact. County tax figures reflect published effective rates, while insurance and PMI are market-based estimates that may vary once a lender underwrites your loan.
Should I choose a 15-year or 30-year mortgage in Vermont?
A 15-year term carries a lower rate and less total interest but a higher payment. A 30-year term keeps payments lower and more flexible, which is why most buyers choose it.
References
- Vermont Department of Taxes, Education Property Tax Rates – tax.vermont.gov/property/education-property-tax-rates
- Vermont Department of Taxes, Property Transfer Tax – tax.vermont.gov/property/property-transfer-tax
- Consumer Financial Protection Bureau, Owning a Home resources – consumerfinance.gov/owning-a-home
Related State Mortgage Calculators
Comparing Vermont against neighboring or similarly-structured New England markets? These calculators use the same real tax-data approach:
Related DexoCalc Tools
This Vermont mortgage calculator sits inside a wider set of financial planning tools on DexoCalc.
This calculator provides estimates for educational purposes only and is not a loan offer, pre-approval, or substitute for advice from a licensed mortgage professional. County tax rates, the homestead/nonhomestead modeling, and property transfer tax figures reflect published rates and law at time of writing and can change annually by act of the Vermont Legislature; confirm exact current figures with your town lister, the Vermont Department of Taxes, and your insurance provider. Sources: VT Department of Taxes, CFPB.