Vermont Property Tax 2026: Homestead Declaration, Property Tax Credit & Income Sensitivity

Vermont has one of the most income-sensitive property tax systems in the U.S. The annual Homestead Declaration determines your education property tax rate, and the Property Tax Credit adjusts the bill based on household income up to $115,400. This 2026 guide explains the declaration, the credit, and the April 15 filing deadline.

How Vermont Property Tax Works

Vermont property tax has two components:

• State education property tax: funds the state education fund; rate set by state
• Municipal property tax: funds local services; rate set by each town

Every Vermont property owner must file a Homestead Declaration annually to receive the homestead education tax rate (vs the non-homestead rate, which is higher).

The Homestead Declaration

File Form HS-122 by April 15. If the property is your primary residence, the education tax is calculated at the homestead rate. If you fail to declare, the property is taxed at the non-homestead rate (higher).

Property Tax Credit (Income Sensitivity)

Vermont's Property Tax Credit reduces your property tax bill based on household income.

Eligibility

• Household income $115,400 or less
• Vermont resident who owns and occupies homestead
• Filed Homestead Declaration timely

Maximum credit

• $5,600 on the state education property tax portion
• $2,400 on the municipal property tax portion
• Total $8,000 maximum

How calculated

The credit is income-sensitive — lower household income results in larger credit. Uses Schedule HI-144 to calculate household income (includes all sources for all household residents).

Application

Form HS-122 by April 15. Extensions available until October 15 (with penalty). Credit reflected on the property tax bill.

Current Use Program and Other Exemptions

Current Use Program

Vermont's Use Value Appraisal Program ("Current Use") taxes agricultural, managed forest, and open-space land at use value rather than market value. Substantial reductions for qualifying farmland and forestland.

Veterans' Exemption

$10,000 of assessed value exempt for veterans receiving VA disability compensation at 50% or greater service-connected rating. 100% disabled veterans receive additional benefits.

Appealing Your Assessment

Vermont appeals have a strict 14-day window.

Step 1: Board of Listers / Assessor informal review

Within 14 days of the change of appraisal notice.

Step 2: Board of Civil Authority (BCA)

Town-level appeal board. File within statutory window.

Step 3: State Appraiser or Superior Court

From BCA, appeal to the Director of Property Valuation and Review (state appraiser) or to Superior Court.

Payment Schedule

Vermont municipalities bill property tax on a local schedule (typically quarterly or semi-annually). Education property tax is billed by each town on the local schedule. Delinquent tax accrues interest at statutory rates.

Frequently Asked Questions

What is Vermont's Homestead Declaration?

An annual filing (Form HS-122) that identifies your Vermont property as your primary residence for education property tax purposes. File by April 15. If declared, property is taxed at the homestead education rate; if not declared, taxed at the higher non-homestead rate.

Who qualifies for Vermont's Property Tax Credit?

Vermont homeowners with household income $115,400 or less, who own and occupy their home as primary residence and have timely filed a Homestead Declaration. Maximum credit $5,600 education + $2,400 municipal = $8,000 total. Household income is calculated on Schedule HI-144 and includes all sources for all household residents including children.

When is the Vermont property tax filing deadline?

April 15 for both the Homestead Declaration and Property Tax Credit Claim (Form HS-122). Extensions available to October 15 with penalty. Property Tax Credit Claims can be filed as late as March 15 of the following year with a $150 processing fee.