What is the property tax rate in Vermont?
The property tax rate in Vermont averages 1.51% of market value for owner-occupied homes (Tax Foundation 2026, using the 2024 American Community Survey). Among the 47 states we cover, only three are higher, and neighboring New Hampshire is just behind at 1.50%.
A large share of every Vermont bill is the state education property tax. Each property is classified as homestead, for an owner’s primary home, or nonhomestead, for everything else, and each class has its own rate in each town. The town then adds its municipal rate for local services.
How Vermont taxes apartment buildings
Apartment buildings pay the nonhomestead education rate. The Department of Taxes treats property rented for more than 182 days in a calendar year, or used only for commercial purposes including rentals, as nonhomestead. An owner who lives in one unit files a homestead declaration, due April 15, for their own home.
Town listers appraise property at fair market value, and taxable real estate is set in the grand list to its owner as of April 1 each year (32 V.S.A. section 3651). Rates are stated per $100 of listed value, so a rate of 1.5154 means $1.5154 of tax for every $100 of value.
Why the common level of appraisal matters
Each town’s listed values drift away from market between reappraisals, and the state measures that drift with the common level of appraisal, or CLA. A CLA of 76% means the town’s listed values average 76% of market. The state adjusts each town’s education tax rates for its CLA so that equal property values pay roughly equal education tax across the state.
The result is that the nominal nonhomestead rate tells you little on its own. In the FY2027 table, Plymouth’s rate is 2.543 with a CLA of 45.44%, and Plainfield’s is 1.0544 with a CLA of 109.59%. Multiply each rate by its CLA and both come to about 1.16% of market value. By our calculation, every town we checked in the table works out to about 1.1555% of equalized value for the nonhomestead education tax in FY2027. Municipal taxes are what actually differ from town to town.
Vermont nonhomestead education tax rates by town
Vermont property tax is set by towns and the state, and the state publishes its rates by town rather than by county, so the table below lists towns. These are FY2027 nonhomestead education rates per $100 of listed value from the Department of Taxes’ rate table dated July 21, 2026. They exclude municipal taxes.
The highest nominal rates are in towns with CLAs below 50%, where listed values lag far behind market, and the lowest are in towns with CLAs above 100%, where listed values run ahead of it. As explained above, the education tax on market value is close to the same everywhere.
| Town | FY2027 nonhomestead rate (per $100) | CLA | Group |
|---|---|---|---|
| Plymouth | 2.5430 | 45.44% | Highest |
| Fayston | 2.4537 | 47.09% | Highest |
| Chelsea | 2.3964 | 48.22% | Highest |
| Greensboro | 2.3425 | 49.33% | Highest |
| Jamaica | 2.3378 | 49.43% | Highest |
| Brookline | 1.0757 | 107.42% | Lowest |
| Hinesburg | 1.0751 | 107.48% | Lowest |
| Huntington | 1.0632 | 108.69% | Lowest |
| Plainfield | 1.0544 | 109.59% | Lowest |
| Andover | 1.0403 | 111.07% | Lowest |
Rates in larger Vermont towns
Most apartment buildings are in the larger towns and cities. Their FY2027 nonhomestead education rates and CLAs from the same state table are below. Again, add the municipal rate from the town’s tax bill to get the full rate.
| Town | Nonhomestead rate (per $100) | CLA |
|---|---|---|
| Burlington | 1.5154 | 76.25% |
| Rutland City | 2.0027 | 57.70% |
| Bennington | 1.9529 | 59.17% |
| Brattleboro | 1.7793 | 64.94% |
| Montpelier | 1.3437 | 85.99% |
The 1.51% average versus an apartment building’s bill
The Tax Foundation’s 1.51% compares median taxes paid with median home values for owner-occupied homes, so it mixes homestead education rates with each town’s municipal tax. It is useful for comparing Vermont with other states, not for pricing one building.
For an apartment building, start from the nonhomestead education tax of about 1.16% of market value in FY2027 and add your town’s municipal rate times your listed value. Then check where your listed value sits against the town’s CLA. A building listed below its peers pays less today than the formula suggests, and a building listed above them pays more and may have a grievance worth filing.
Does Vermont reassess property when it sells?
No. Vermont has no rule that resets a building’s value to its sale price. Values change when the town reappraises or the listers revise the grand list. Each town must start a full reappraisal no later than six years after its last one, unless the state approves a longer period, and the state can order one if the town’s values become too uneven (32 V.S.A. section 4041a). A 2026 act repeals those town reappraisal provisions effective January 1, 2031.
A sale price is still evidence. If your building is listed well below what it sells for compared with similar buildings in town, the next reappraisal is likely to raise it, and a buyer will expect that.
How to grieve and appeal a Vermont assessment
Start with the town listers. When values change, listers must mail notices at least 14 days before the grievance hearing, and you must file a written objection on or before the grievance day (32 V.S.A. section 4111). The deadlines are short, so open the notice as soon as it arrives.
- Grievance: file in writing with the listers on or before the grievance day stated in the notice.
- Board of civil authority: appeal in writing to the town clerk within 14 days after notice of the listers’ decision (32 V.S.A. section 4404).
- State appraiser or Superior Court: appeal within 30 days after the board of civil authority’s decision is entered (32 V.S.A. section 4461).
- A change that only reflects a CLA adjustment cannot be grieved.
Building a grievance for an apartment building
The listers are deciding fair market value, so bring what a buyer would look at: two or three years of rent rolls and operating statements, a market cap rate, and sales of similar buildings. Point out deferred repairs with contractor quotes.
Compare your building with the town’s CLA. If the town’s values average 76% of market and your building is listed at 95% of what it would sell for, the gap is your argument even if the market value itself is right. Keep the written grievance short and specific, and note the 14-day window for the next step if the listers say no.
Property transfer tax when a building sells
A sale also triggers Vermont’s property transfer tax, which is 1.25% of value for most property under 32 V.S.A. section 9602, plus a 0.22% clean water surcharge, for 1.47% on a rental building. On a $2,000,000 sale, that is $29,400. It is a one-time closing cost, separate from the annual bill, but buyers count it when they set a price.
Exemptions and classifications for Vermont apartments
Vermont has no general property tax exemption for apartment buildings. The key classification is homestead versus nonhomestead. If you live in part of your building, file the homestead declaration on time. The Department of Taxes says a declaration not filed by October 15 leaves the property classified as nonhomestead, and late filers can owe a penalty of up to 3% or 8%, depending on whether the nonhomestead rate is higher or lower than the homestead rate.
Worked example: property tax on a $2M Vermont apartment building
Take a building with a market value of $2,000,000 in Burlington, where the CLA is 76.25%. If its listed value matches the town average, it is listed at $1,525,000, and the FY2027 nonhomestead education tax at 1.5154 per $100 is about $23,110. The same $2,000,000 building in Rutland City would be listed at about $1,154,000 with a CLA of 57.70%, and at 2.0027 per $100 the education tax is about $23,111. Municipal tax comes on top in both towns.
Now the sale. Suppose the Burlington building is listed at only $1,200,000 because it has not been revalued since a renovation. The education tax is about $18,185. A buyer should assume the next reappraisal brings it up to the town average of $1,525,000, which adds about $4,925 a year in education tax alone. At an illustrative 6% cap rate, that cuts about $82,084 from what a buyer can pay.
| Scenario | Listed value | Rate (per $100) | Education tax |
|---|---|---|---|
| Burlington, listed at town CLA | $1,525,000 | 1.5154 | $23,110 |
| Rutland City, listed at town CLA | $1,154,000 | 2.0027 | $23,111 |
| Burlington, listed below peers | $1,200,000 | 1.5154 | $18,185 |
| Increase after reappraisal | +$325,000 | 1.5154 | +$4,925 |
Preparing property tax records before a sale
Buyers value apartment buildings on net operating income, so property tax comes straight off price at the market cap rate. In Vermont, collect the last three tax bills with the education and municipal parts shown separately, the town’s CLA and last reappraisal year, and any grievance decisions. If you live in one unit, have your homestead declarations ready, since the buyer’s bill will be fully nonhomestead.
Selling an apartment building in Vermont
Skyline buys apartment buildings with five or more units in Vermont, including buildings in Burlington, Rutland and other towns with high nominal rates. We buy directly, close on your timeline, and can work inside 1031 deadlines. We underwrite from your actual bills and the town’s CLA, so a low nominal rate or a recent reappraisal shows up clearly in our number.
For the tax on the sale itself, see Vermont capital gains tax on real estate. For the tenant rules a buyer inherits, see Vermont landlord-tenant law for apartment owners.
