A median Vermont home costs $352,800 (23rd of 51). Borrowing 80% at 7.40% gives $2,472.92 per month once $417.50 of tax and $101.25 of insurance are added to $1,954.17 of principal and interest; at 5% down with PMI, budget $2,978.98.
Homestead exemptions and property tax relief
Every owner-occupant must file a Homestead Declaration (form HS-122) by April 15 each year to get the homestead school rate. The same form claims the Property Tax Credit, worth up to $8,000 in 2026 for households under the income limits.
First-time buyer programs
The Vermont Housing Finance Agency's ASSIST provides up to $10,000 as a 0% deferred second mortgage for down payment and closing costs, used with a VHFA MOVE mortgage.
Transfer and recording taxes
The buyer pays the property transfer tax. For a principal residence it is 0.5% on the first $200,000 and 1.25% above that, plus a 0.22% clean water surcharge on the part above $200,000. That comes to about $3,246 on a $352,800 home. With VHFA financing, the first $250,000 is taxed at a lower rate.
Closing costs to plan for
The transfer tax is the buyer's largest government charge. Add attorney, title and lender fees.
When property tax bills are due
Vermont towns set their own tax due dates, often in two or four installments. Your bill has two parts: the municipal tax and the education tax, and the education rate depends on whether the home is classified as a homestead. If no Homestead Declaration is filed, the town bills the higher nonhomestead education rate.
Before you buy in Vermont
File Form HS-122 by April 15 if you owned and lived in the home as your principal residence on April 1. If you buy after April 1, file the next year. A late declaration can carry a penalty, and after October 15 the property is generally classified as nonhomestead for that year. The same form, with Schedule HI-144, claims the Property Tax Credit. For 2026 you must have lived in Vermont all of 2025 and have household income of $115,400 or less, and the credit is capped at $8,000.
2026 loan limit in Vermont
FHFA 2026 one-unit conforming limits: the $832,750 baseline covers each of the 14 counties. The typical $282,240 loan stays conforming.
Vermont numbers used above
| Measure | Vermont | U.S. |
|---|---|---|
| Median home value (ACS 2024) | $352,800 | $360,600 |
| Effective property tax rate | 1.42% (7th highest) | 0.89% |
| Average HO-3 premium (NAIC 2023) | $1,215 | $1,737 |
| Median household income | $82,730 | $81,604 |
| Median gross rent | $1,319 | $1,487 |
| Income needed at 28% (20% down) | $105,982 | – |
Frequently asked questions
When do I file the Vermont Homestead Declaration?
By April 15 each year, if you owned and lived in the home as your principal residence on April 1.
What happens if I don't file the Homestead Declaration?
The town uses the nonhomestead education rate. After October 15 the home is generally classified as nonhomestead for that year.
Who qualifies for Vermont's Property Tax Credit in 2026?
Residents domiciled in Vermont all of 2025 with household income of $115,400 or less. The maximum credit is $8,000.
What is the median-home payment in Vermont?
About $2,472.92 a month on a $352,800 home with 20% down at 7.40%, including tax and insurance.
Sources
- Vermont Department of Taxes, HS-122 instructions
- Vermont Department of Taxes, property transfer tax
- Vermont HS-122 instructions
- VHFA homebuyers
- FHFA, 2026 conforming loan limits
- Census ACS 2024 1-year (B25077, B25103, B19013, B25064); NAIC homeowners report (2023); Freddie Mac PMMS.
See also: all states · house affordability · Vermont paycheck