On a national scale, property taxes in Vermont are relatively high, but there are certain tax breaks available, generally depending on your level of household income. As explained in the Vermont Property Owners Report, homeowners with household income of less than $90,000 can qualify for reduced school taxes on their homestead, which is their primary residence and up to two acres of land. Due to a phase-out, some homeowners with household income up to $106,000 can get a partial property tax reduction. And Vermont homeowners with household incomes of less than $47,000 can qualify for a reduction in their property tax assessment and/or a rebate of property taxes.
As indicated by the Vermont Department of taxes, the education property tax rates for 2010 on homesteads will be $0.86 multiplied by the district spending adjustment for the municipality per $100.00 of equalized property value. The Vermont Property Owners Report indicates that the average effective total residential school tax rate in 2009 was $1.21.
To take advantage of the lower property tax rates on a homestead, you need to file Form HS-122 – Homestead Declaration and Property Tax Adjustment Claim, and Schedule HI-144 – Household Income each year. You can file Form HS-122 online on the Vermont Department of Taxes website.
Veterans, their surviving spouses or children can qualify for an exemption from property taxes in Vermont on the first $10,000 of appraisal value, and up to $40,000 if the town approves. A written application for the exemption must be filed by May 1 of each year and a written statement is needed from the Veteran’s Administration verifying that the family qualifies for the property tax exemption. The exemption applies if payment is received as compensation for the death of the veteran, as dependence and indemnity compensation, or as a disability pension or compensation.
If you are a renter in Vermont, you may qualify for the renter rebate. The rebate is a portion of the rent you paid that exceeds a certain percentage of your household income. To qualify for the rebate, you must be a legal resident of Vermont for the entire year, you cannot be claimed as a dependent on someone else’s tax return, and your household income must not be more than $47,000. You must have rented for all 12 months of the year. But there is an exception if you owned a homestead in Vermont, sold your homestead before April 1st, and were renting on December 31st.
The renter rebate is claimed on your Vermont state income tax return, Form IN-111. To claim the rebate you need to complete Form PR-141 – Renter Rebate Claim. You must also attach Schedule HI-144 – Household Income, and Form LC-142 – Landlord’s Certificate, which you should receive from your landlord. If you do not have to file a Vermont state income tax, you can still claim the Renter Rebate. You should file Form PR-141 by April 15, but claims are accepted until September 1st.
A Special Report On Vermont Real Estate Taxes – Vermont Real Estate Today
Free Online Annual Filing of 2010 Form HS-122 – Vermont Department of Taxes
Form HS-122 – Homestead Declaration and Property Tax Adjustment Claim
Form IN-111 – Vermont Income Tax Return
Form PR-141 – Renter Rebate Claim
Highlights of 2010 Tax Legislation – Vermont Department of Taxes
Property Tax Valuation and Review – Vermont Department of Taxes
Renter Rebate Claim Information – Vermont Department of Taxes
Schedule HI-144 – Household Income