VT · #49 by population

Buying a home in Vermont

Costs and rules that are specific to Vermont. Main city: Burlington.

In short

Vermont taxes property sales through its property transfer tax and Clean Water Surcharge, does not require an attorney at closing and imposes only limited seller disclosures. It allows both court and out-of-court foreclosure and is not a community property state.

Calculate for Vermont

If you buy

Vermont state transfer tax

Property transfer tax (32 V.S.A. 9602) and Clean Water Surcharge: Principal residence: 0.5% on the first $200,000, 1.25% above plus 0.22% surcharge (1.47% total); other year-round homes 3.4% plus 0.22% (3.62% total); long-term rentals, land and 5+ unit buildings 1.25% plus 0.22%. Change the price: the amount is recalculated instantly.

Price$352,800
State transfer tax$3,246.16
Share of the price0.92% of the price
Who paysThe buyer

Default price: the Vermont median value of owner-occupied homes, $352,800 (Census ACS 2024). Rule: Principal residence only: 0.5% on the first $200,000 and 1.47% (1.25% plus the 0.22% Clean Water Surcharge) on the value above $200,000. A principal residence bought with a VHFA, USDA Rural Development direct, or VHCB homeland-grant loan owes no tax on the first $250,000 (1.47% above). A year-round home that is neither a primary residence nor a long-term rental pays 3.62% on the whole value. Long-term rental, land, non-year-round home, and buildings with five or more units pay 1.47%. The general tax is 1.25% of value or $1.00, whichever is greater. Who pays: By statute the tax is the buyer's liability unless fixed otherwise by agreement of the parties (9604). It is due within 30 days after the transfer. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Vermont transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Vermont state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Vermont in short

Is there a real estate transfer tax in Vermont?

Vermont taxes the transfer of a deed: for a principal residence, 0.5% on the first $200,000 and 1.25% above that plus a 0.22% Clean Water Surcharge above $200,000, while a year-round home that is not a primary residence or long-term rental pays 3.4% plus 0.22%.

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How much is the state transfer tax on a $352,800 home in Vermont?

On $352,800, the median value of owner-occupied homes in Vermont (Census ACS 2024), the state property transfer tax and clean water surcharge comes to $3,246.16 (Principal residence: 0.5% on the first $200,000, 1.25% above plus 0.22% surcharge (1.47% total)). County and city taxes are not included.

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What closing costs does Vermont law set?

Vermont has no official typical closing-cost total. The buyer owes the property transfer tax by statute, $3,940 on a $400,000 primary home, and the clerk charges $15 per page to record plus $15 for the tax return.

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How is property tax calculated in Vermont?

A Vermont property tax bill adds a municipal tax and a statewide education tax, and filing a homestead declaration each year gives your principal home the lower homestead education rate. In Burlington for FY2027 the rates are 1.5489 (homestead education) and 0.9097 (municipal) per $100 of listed value.

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What is the deadline to appeal a property tax assessment in Vermont?

In Burlington, Vermont, file a written grievance with the Assessor's Office by May 15 (the 2026 deadline), and if the Board of Assessors rules against you, appeal to the Board of Tax Appeals within 14 days of the decision letter and then to the Vermont Department of Taxes or the Superior Court within 30 days.

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Do you need a real estate attorney to close in Vermont?

None of the Vermont statutes read says a home sale must be closed by an attorney. A deed must be signed, acknowledged before a notary and recorded in the town clerk office (27 V.S.A. 341).

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What must a home seller disclose in Vermont?

Vermont does not require one general property-condition form. Under 27 V.S.A. 380 a seller must give the buyer flood-map and flood-history information before or with the contract, and a seller with a private well must hand over Department of Health water materials within 72 hours of signing (27 V.S.A. 616).

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How does foreclosure work in Vermont?

Vermont foreclosures of owner-occupied homes go through the courts: the court sets a redemption period of six months from the decree unless it orders less, and no sale of an owner-occupied dwelling may take place within seven months of service of the complaint unless the court shortens the period or the parties agree.

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What first-time home buyer programs does Vermont offer?

In Vermont, the Vermont Housing Finance Agency (VHFA) offers an interest-rate program (MOVE, 6.500% on October 13, 2026), a down payment loan of up to $10,000 (ASSIST) and a $15,000 grant for first-generation buyers.

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How much tax when you sell a home in Vermont?

The federal rule is the same in Vermont as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. Vermont income tax on the gain is not computed here.

Capital gains on a home sale

Vermont guides

Burlington

Buying a home in Burlington, Vermont

Professionals in Vermont

All states · Federal guides