With a 8.75% top income tax rate and 1.83% property tax, Vermont homeowners face a significant combined tax burden. This calculator is pre-filled with Vermont numbers: $365,000 median price, 1.83% property tax, $1,050/year insurance.
Last updated: March 13, 2026
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Monthly Payment (Vermont)$0
Loan Details — Vermont
Vermont median: $365,000
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Below 20% triggers PMI on conventional loans
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Average 30-year fixed ~6.75% (March 2026)
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Vermont average: 1.83%
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Vermont average: $1,050/yr
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Principal & Interest
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Property Tax
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Vermont Metro Area Home Prices
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Yearly Amortization Schedule+
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Vermont's Tax Landscape and Your Mortgage
Vermont uses a progressive income tax with a top rate of 8.75%. A household earning $150,000 pays an estimated $8,531-$11,156 in state income tax, depending on filing status and deductions. That's $820/month less available for housing costs.
At the state's median home price of $365,000, the $1.83% property tax rate adds $557/month to your mortgage payment. That's $6,680/year — well above the national median of ~1.1%.
Property Taxes Across Vermont
The 1.83% statewide average masks significant variation. High property taxes — second highest in New England
Price ranges across the state: Burlington has a median of $460,000, while Montpelier area sits at $345,000 — a $115,000 gap that dramatically changes your monthly payment. At $1.83% property tax, that price difference alone means $175/month more in property tax in Burlington.
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Homebuyer Programs and Exemptions
Vermont offers several programs for homebuyers:
VHFA MOVE program with competitive rates and closing cost assistance
Down payment assistance through VHFA
Homestead exemption: Homestead declaration reduces education tax rate based on income; property tax credit for low/moderate-income homeowners
Vermont-Specific Considerations
High property taxes — second highest in New England
High income tax rates with 8.75% top bracket
Income-sensitized education property tax adjusts based on ability to pay — unique system
Remote worker incentive programs have attracted buyers from NYC and Boston
Limited housing inventory drives prices up despite small population
Property tax rates vary dramatically by town — education property taxes differ based on local school spending, creating wide variation statewide
Compare Vermont Mortgage Rates
See personalized rates from Vermont lenders. LendingTree matches you with up to 5 offers so you can compare and save.
0.39% property tax, 5% top rate. Median home: $232,500.
Alaska Mortgage Calculator
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1.04% property tax, no income tax. Median home: $340,000.
Arizona Mortgage Calculator
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0.62% property tax, 2.5% top rate. Median home: $395,000.
Frequently Asked Questions
What is the average property tax rate in Vermont?
The average effective property tax rate in Vermont is 1.83%. On a $365,000 home (the state median), that works out to approximately $6,680/year or $557/month added to your mortgage payment. Property tax rates vary by county and school district within Vermont — always check your specific jurisdiction's rate. Homestead exemption: Homestead declaration reduces education tax rate based on income; property tax credit for low/moderate-income homeowners
How much does homeowners insurance cost in Vermont?
The average annual homeowners insurance premium in Vermont is approximately $1,050 ($88/month). This is below the national average of approximately $1,500/year. Actual premiums depend on your home's location, age, construction type, and coverage limits.
What first-time homebuyer programs are available in Vermont?
VHFA MOVE program with competitive rates and closing cost assistance. Down payment assistance through VHFA. These programs typically have income limits, purchase price caps, and may require homebuyer education courses. Check the Vermont housing finance agency website for current eligibility requirements and application deadlines.
How does Vermont's 8.75% income tax affect home affordability?
Vermont's top income tax rate of 8.75% reduces your take-home pay, which affects how much mortgage you can comfortably carry. On a $150,000 salary, state income tax takes roughly $8,531-$11,156/year (effective rate is lower than the top marginal rate). Combined with 1.83% property tax, the total tax burden in Vermont is above average. Use our paycheck calculator to see your exact take-home pay.
What is the conforming loan limit in Vermont?
The 2026 conforming loan limit in Vermont is $806,500. Loans above this amount are considered jumbo loans and typically carry higher interest rates (0.25-0.5% premium), require larger down payments (10-20%), and have stricter qualification requirements including higher credit scores (700+) and lower debt-to-income ratios.
This calculator is for educational purposes. Tax rates and insurance costs are based on Vermont state averages and may not reflect your specific county, school district, or municipality. Consult a financial professional for advice specific to your situation.