Nearly every town in Vermont saw homestead education tax increases in the new fiscal year, with a few seeing increases over 30%.
That’s after a tumultuous school budget voting season, when a third of school budgets failed to pass on the first attempt and the Legislature made attempts to reduce the spike.
Of the 257 towns and villages with tax data available, 87% of towns saw increases to their homestead tax in fiscal year 2025. Granville saw the largest increase, with rates increasing 38%, while Fairlee saw the largest decrease, at 20.6%.
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This year, 30 towns underwent reappraisals — which means that tax rates are applied to different home values and therefore aren’t directly comparable. In order to calculate a difference, Vermont Public took the median homestead value of all homestead properties in each town by year (using preliminary data for 2024), calculated its homestead tax liability assuming no exemptions or tax credits, and then compared the two amounts.
Of the 29 reappraised towns with data available, Windham saw the largest increase in taxes owed at 39%, while Kirby saw the largest decrease, at 10.1%. The actual tax data for those towns will change once the grand list is finalized.
Every property that has been named as a primary residence on a property owner’s annual Homestead Declaration pays the homestead tax, which is earmarked exclusively for education in the state. Properties that have not been declared to be primary residences, including nonresidential properties, instead pay a uniform nonhomestead rate.
Most taxpayers do not pay the full rate; around two-thirds of homesteads receive an income-based property tax credit.
The homestead education tax rate is separate from the municipal property tax rate.
Taxes and affordability are among the top issues on Vermonters' minds this election season, according to what residents have told Vermont Public they want candidates to talk about.
Have questions, comments or tips? Send us a message. Or contact the reporter directly at corey.dockser@vermontpublic.org.
