Buying a Home in Vermont in 2026
Vermont's market is small, rural, and surprisingly tight, with Burlington setting prices the rest of the state chases.
Burlington leads with lake and university demand, Stowe carries the ski-town premium, and Montpelier stays modest as the tiny capital. If you are moving to Vermont from out of state, spend a weekend driving the areas you can afford; the feel of a neighborhood tells you things no listing ever will.
Vermont Property Taxes: The Number That Changes Your Payment
The 1.51% effective rate ranks fourth-highest nationally, driven by the statewide education tax that funds Vermont's schools. On a $388,000 home, that works out to roughly $5,859 a year, or $488 a month, which is fourth-highest in the nation.
Property tax is part of PITI, the full monthly figure lenders actually underwrite, so it directly limits how much you can borrow. Because Vermont lenders escrow it, the tax shows up inside the monthly figure you budget around instead of as a separate yearly shock.
First-Time Home Buyer Programs in Vermont
The Vermont Housing Finance Agency (VHFA) runs the state's main programs. Its MOVE program down payment assistance for buyers purchasing a primary residence, which can meaningfully lower the monthly payment from day one.
The agency's down payment assistance loans paired with VHFA first mortgages to cut upfront costs. Check Vermont income and price caps first; they are the gatekeepers, and everything else follows from them.
Worked Example: Buying the Median Vermont Home
Here is what the median Vermont purchase looks like with 20% down and a 30-year fixed rate near 7.4%, the Freddie Mac average in October 2026:
| Item | Monthly / Amount |
| Home price | $388,000 |
| Down payment (20%) | $77,600 |
| Loan amount | $310,400 |
| Principal and interest (7.4%, 30-yr) | $2,149 |
| Property tax (1.51% effective) | $488 |
| Homeowners insurance (est.) | $113 |
| Total PITI | $2,751 |
With only 10% down on a $388,000 Vermont purchase, private mortgage insurance would stack on top of PITI until you hit 20% equity, so test that scenario in the calculator before you decide.
Closing Costs, Transfer Taxes, and Homestead Rules in Vermont
Vermont's property transfer tax is 0.5% on the first $100,000 of a principal residence and 1.25% on the remainder. File the homestead declaration by the April deadline; missing it means paying the higher non-homestead education rate.
Filing a homestead declaration determines whether you pay the homestead education tax rate, and income sensitivity can adjust the bill for qualifying residents. Plan on 2% to 5% of the purchase price all-in for closing in Vermont, and compare loan estimates line by line rather than trusting the headline rate.
Frequently Asked Questions
What is the median home price in Vermont in 2026?
Roughly $388,000, based on median single-family sale price data. Prices vary widely by city, so treat the statewide figure as a starting point rather than a quote for any specific neighborhood.
How much are property taxes on a $388,000 Vermont home?
At the 1.51% effective rate, about $5,859 a year, or $488 a month before any exemptions. Your county and school district set the actual levy, so individual bills differ.
How much house can I afford in Vermont?
A common rule caps housing costs near 28% of gross monthly income. Check your take-home pay with the Vermont Paycheck Calculator, then test price points in the calculator above to find a payment that fits.
What is Vermont's homestead declaration?
It is an annual filing that tells the state your property is your primary residence, which qualifies you for the homestead education tax rate and possible income-based adjustments.
How much is transfer tax on a Vermont home?
On a $388,000 principal residence, the buyer pays 0.5% on the first $100,000 ($500) plus 1.25% on the remaining $288,000 ($3,600), for about $4,100 total.
Related Calculators
Start with the main Mortgage Calculator to compare Vermont against national figures, or see how nearby states stack up with the New Hampshire Mortgage Calculator, New York Mortgage Calculator, Rhode Island Mortgage Calculator. To budget the payment against real take-home pay, use the Vermont Paycheck Calculator. Browse more free tools at USACalculator.
Sources: Bankrate (Redfin median single-family prices), Tax Foundation via CountryTaxCalc (effective property tax rates), Freddie Mac (30-year fixed rate). State figures: Vermont median $388,000, 1.51% effective rate. Figures reviewed for 2026. This calculator provides an estimate for planning purposes and is not financial advice. Confirm program details with the state housing agency.