Vermont Property Tax Exemptions 2026: Homestead, Senior, Veteran & Disability
Vermont (VT) homeowners have several ways to legally reduce their property tax bill — homestead reductions, senior credits, veteran exemptions, and disability programs. This page lists every Vermont property tax exemption available in 2026, who qualifies, dollar amounts, and how to apply.
Quick answer: The most common Vermont property tax exemption is the general homestead reduction for owner-occupied primary residences. Additional savings stack on top for residents who are age 65+, disabled, a disabled veteran, or a surviving spouse. Most Vermont exemptions require a one-time application with the local county assessor; some need annual income recertification.
How much can a Vermont homeowner save with the homestead exemption?
For a median Vermont home valued at $290,500 (current annual tax $4,956), the general homestead reduction alone is worth roughly:
All Vermont property tax exemptions at a glance
| Exemption | Who qualifies | Benefit | Typical savings |
|---|---|---|---|
| Homestead (general) | Owner-occupied primary residence | ~$5,600 value reduction | $96/yr est. |
| Senior / Age 65+ | Owner-occupied; age 65+; often income-capped | Additional reduction or freeze | $200 – $2,000/yr |
| Disabled veteran | Service-connected disability rating | Up to 100% exemption in many states | $1,000 – full bill |
| Disability (non-veteran) | Permanent total disability | Reduction + sometimes freeze | $200 – $1,500/yr |
| Surviving spouse | Of veteran, first responder, or senior | Continuation of decedent's exemption | Same as deceased's benefit |
| Agricultural / farm | Active agricultural use | Use-value assessment instead of market | 30% – 80% lower bill |
Estimated savings use Vermont's effective property tax rate of 1.71% on the median home value of $290,500. Your actual savings depend on your county assessor's millage and how exemptions are applied to assessed (vs. market) value.
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.
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.
Now check your county's actual rate
Exemptions reduce the taxable amount — but the millage your county charges is what determines the bill. See the 2026 effective rate for every Vermont county.
Browse Vermont Counties → Read the full Vermont guideVermont Department of Taxes — Homestead Declaration · Vermont Department of Taxes — Property Tax Credit · Vermont Department of Taxes — Form HS-122 Instructions · Vermont Tax — Property Tax Credit Fact Sheet · Vermont Statutes Title 32 (Taxation and Finance). Exemption amounts and filing deadlines verified against the 2025-2026 legislative sessions and official state publications. Always verify with your local assessor before filing — programs change annually. This page is informational and is not tax or legal advice.