Overview of Vermont Taxes
The average effective property tax rate in Vermont is 1.86%, which ranks as the fifth-highest rate in the U.S. The typical homeowner in Vermont can expect to spend $4,340 annually in property taxes.
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To calculate the exact amount of property tax you will owe requires your property's assessed value and the property tax rates based on your property's address. Please note that we can only estimate your property tax based on median property taxes in your area. There are typically multiple rates in a given area, because your state, county, local schools and emergency responders each receive funding partly through these taxes. In our calculator, we take your home value and multiply that by your county's effective property tax rate. This is equal to the median property tax paid as a percentage of the median home value in your county.
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Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.
Vermont Property Taxes
The state of Vermont is one of the few states in which the state itself levies a property tax in addition to those the local government does. The state’s “education tax” supports schools (as do local school district taxes in most other states) and is the largest single source of property taxes in Vermont.
That statewide education tax is one reason the Green Mountain State has some of the highest property tax rates in the country. The 1.86% average effective rate in Vermont ranks as the fifth-highest in the country.
Are you interested in buying a home in the Green Mountain State? If so, check out our Vermont mortgage guide to learn about how to get a mortgage in Vermont and what rates currently are in the state.
A financial advisor in Vermont can help you understand how homeownership fits into your overall financial goals. Financial advisors can also help with investing and financial plans, including taxes, homeownership, retirement and more, to make sure you are preparing for the future.
How the Vermont Property Tax Works
There are two types of property taxes in Vermont: local property taxes and the state education tax rate. Local property tax rates are determined by municipalities and are applied to a home’s assessed value. The assessed value is determined by local assessors, who are called listers in Vermont.
The state requires a city or town to conduct a reappraisal if the assessed values in an area fall below 80% of the market value. Otherwise there are no strict regulations on when listers need to reappraise property; it varies from one town to the next.
The education tax paid by homeowners depends on a variety of factors, including the per-pupil spending in their local schools, the type of property (residential homestead or other) and the state-determined common level of appraisal (CLA).
The state government determines the CLA for each tax district. It represents the overall level of appraised values compared to actual market values. A city with a high common level of appraisal has generally over-appraised property and therefore should pay a lower rate. This ensures that everyone pays a fair share of the education tax.
Vermont Property Tax Rates
In Vermont, rates on residential, owner-occupied property are generally lower than those on other types of property. The homestead tax rate is set each year and adjusted based on the CLA (described above) and the spending per pupil. Except in areas with a very high level of spending per pupil, the homestead rate will be lower than the general rate.
The table below shows the average effective tax rate in every Vermont county, as well as their median home values and median annual property tax payments. Average effective tax rate is a good way to compare taxes across areas. It is calculated as the annual taxes paid by a typical homeowner as a percentage of home value.
|County||Median Home Value||Median Annual Property Tax Payment||Average Effective Property Tax Rate|
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Vermont’s Chittenden County is situated on the eastern shores of Lake Champlain and contains the city of Burlington. It has among the highest property taxes in the state. The median annual property tax homeowners in Chittenden County pay is $5,353, highest in the state and more than double the national average.
In the city of Burlington, the total municipal tax rate is 0.9002, and that applies to assessed value. The common level of appraisal is 77.65%, which means assessed values are about 78% of true market values. For that reason, the total homestead education tax rate is higher in Burlington than in much of the state, at about 2.0576.
Rutland County is located in western Vermont, stretching from the southern tip of Lake Champlain east to the city of Killington. On average, property tax rates in Rutland County are among the highest in the state. Rutland County’s average effective property tax rate is 2.04%. Compare this to the 1.86% state average and the 1.07% national average.
This central Vermont county has property taxes a bit higher than the state average. The median annual property tax paid by homeowners in Washington County is $4,491, fourth-highest in the state. In Montpelier, the state capital and largest city in the county, rates are also quite high. The average effective property tax rate in Washington County is 2.02%.
With a population of almost 56,000, Windsor County is the fourth-most populous county in Vermont. It also has some of the highest property taxes. The average effective property tax rate in Windsor County is 2.07%, highest in the state. At that rate, annual taxes on a home worth $200,000 would be $4,140.
If you’re looking for low property taxes in Vermont, Franklin County is one of your best bets. The county’s average effective property tax rate is 1.70%, good for second-lowest in the state. In St. Albans, the largest city in the county, the total municipal rate is about 2.6265%.
Windham County is located between the Green Mountains and the Connecticut River in southern Vermont. Homeowners in Windham County pay a median property tax of $4,377. The average effective property tax rate in Windham county is 2.06%, which is the second-highest rate in Vermont.
Much of Bennington County is rural, as it's covered by Green Mountain National Forest and is mostly untouched by civilization. In the portions that are inhabited, though, property taxes are a key source of revenue to support schools and basic functions of local government.
The county’s average effective tax rate of 1.80%. That's fairly low compared to some other counties, but is still considerably higher than the 1.07% national average.
Addison County is located between Chittenden and Rutland Counties in western Vermont. The largest town is Middlebury, home of Middlebury College. The median annual property tax payment in Addison County is $4,624, second-highest in the state. The average effective tax rate here is 1.91%.
This eastern Vermont County has property tax rates above the state average. The average effective property tax rate in Caledonia County is 1.96%, compared to Vermont's 1.86% average.
It is worth noting, however, that rates in nearby New Hampshire are even higher. For example, the average effective rate in New Hampshire’s Grafton County, which is across the Connecticut River from Caledonia County, is 2.06%.
Orange County has a population of just under 30,000, making it the fifth-smallest county in Vermont. However, the county’s average effective property tax rate is 1.98%, fifth-highest in the state. Based on this, the owner of a home worth $200,000 would be on the hook for $3,960 in annual property tax payments.
Places Receiving the Most Value for Their Property Taxes
SmartAsset’s interactive map highlights the places across the country where property tax dollars are being spent most effectively. Zoom between states and the national map to see the counties getting the biggest bang for their property tax buck.
Our study aims to find the places in the United States where people are getting the most value for their property tax dollars. To do this, we looked at property taxes paid, school rankings and the change in property values over a five-year period.
First, we used the number of households, median home value and average property tax rate to calculate a per capita property tax collected for each county.
As a way to measure the quality of schools, we analyzed the math and reading/language arts proficiencies for every school district in the country. We created an average score for each district by looking at the scores for every school in that district, weighting it to account for the number of students in each school. Within each state, we assigned every county a score between 1 and 10 (with 10 being the best) based on the average scores of the districts in each county.
Then, we calculated the change in property tax value in each county over a five-year period. Places where property values rose by the greatest amount indicated where consumers were motivated to buy homes, and a positive return on investment for homeowners in the community.
Finally, we calculated a property tax index, based on the criteria above. Counties with the highest scores were those where property tax dollars are going the furthest.