Vermont happens to be one of the few states that levy a property tax on top to those imposed by municipal governments. The state’s “education tax” benefits schools (as do local school district levies in most other states) and is Vermont’s largest single source of property taxes.
One of the reasons Vermont possesses some of the highest property tax rates in the United States is its statewide education tax. Vermont’s average effective rate is 1.73%, the fifth highest in the country.
How the Vermont Property Tax Works
Vermont has two forms of property taxes: local property taxes and the state’s education tax rate. Local property tax rates are set by municipalities and applied to a home’s assessed value. The assessed value is decided by local assessors, known as listers in Vermont.
If an area’s assessed values fall below 80% of market value, the state demands a reappraisal by the city or municipality. Otherwise, there are no precise standards governing when listers must reappraise property; it varies by town.
The education tax paid by homeowners is decided by a number of criteria, including per-pupil spending in their local schools, property type (residential homestead or other), and the state-set common level of appraisal (CLA).
The state government sets the CLA for each tax district. It indicates the overall level of evaluated values in relation to real market values. A municipality with a high common level of appraisal has often over-appraised property, so the rate should be lower. This ensures that everyone contributes an equitable share of the education tax.
Read more: Publication 530 (2023), Tax Information for Homeowners | Internal Revenue Service
What are the Vermont Property Tax Rates?
In Vermont, rates for homeowners owner-occupied property are often lower than for other categories of property. The homestead tax rate is determined each year and altered based on the CLA (as explained above) and per-pupil spending. Except in locations with extremely high spending per pupil, the homestead rate will be less than the general rate.
The table below displays the average effective tax rate for each Vermont county, as well as the median house value and annual property tax payment. The average effective tax rate is a useful tool for comparing taxes across places. It is computed as the average homeowner’s annual taxes as a percentage of their home’s worth.
| County | Median Home Value | Median Annual Property Tax Payment | Average Effective Property Tax Rate |
| Addison | $257,100 | $4,778 | 1.86% |
| Bennington | $210,600 | $3,979 | 1.89% |
| Caledonia | $172,700 | $3,499 | 2.03% |
| Chittenden | $314,200 | $6,376 | 2.03% |
| Essex | $137,600 | $2,580 | 1.88% |
| Franklin | $219,200 | $3,747 | 1.71% |
| Grand Isle | $287,200 | $4,721 | 1.64% |
| Lamoille | $228,200 | $4,267 | 1.87% |
| Orange | $196,900 | $3,926 | 1.99% |
| Orleans | $169,400 | $3,083 | 1.82% |
| Rutland | $174,800 | $3,721 | 2.13% |
| Washington | $230,400 | $4,724 | 2.05% |
| Windham | $217,600 | $4,476 | 2.06% |
| Windsor | $219,500 | $4,668 | 2.13% |
Source: SmartAsset
Chittenden County
Burlington is located in Chittenden County, Vermont, on the eastern shoreline of Lake Champlain. It has some of the highest property taxes in the entire territory. Chittenden County homeowners pay the highest median annual property tax in the state, $6,376, which is more than twice the national average.
Burlington’s overall municipal tax rate being 0.7082, which applies to assessed valuation. The average level of appraisal equals 77.65%, which indicates evaluated values are approximately 78% of genuine market values. As a result, Burlington’s total homestead education tax rate is roughly 2.0576 percent higher than the rest of the state.
Rutland County
Rutland County’s average property tax rate is one of the highest in the entire state. Rutland County’s average effective property tax rate being 2.13 percent. This compares to the state average of 1.73% and the national average of 0.99%.
Washington County
The central Vermont county has slightly higher property taxes than the state average. The average annual property tax paid by Washington County homeowners is $4,724, making it the third highest in the state. Rates are also high in Montpelier, the state capital & county’s largest city. Washington County’s average effective property tax rate is 2.05%.
Windsor County
Windsor County, with an estimated population of nearly 58,000, is Vermont’s fourth most populated county. It also charges among the highest property taxes. Windsor County’s median effective property tax rate is 2.13%, the highest in the state. At such rate, the annual taxes for a $200,000 home would be $4,260.
Where to Go for Vermont Property Tax Help
If you need additional assistance with Vermont property taxes or general Vermont state tax information, please visit XOA TAX Service. We can connect you with a tax consultant who is experienced with your state. A skilled tax specialist may do your taxes for you without the need to visit an office.
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