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Homestead Declarations | Frequently Asked Questions

What if there is more than one owner of the homestead?

If the property owners are a married or civil union couple, then both owners are included in the Homestead Declaration. Learn more about other ownership situations or special situations. If you have additional questions please contact the Vermont Department of Taxes.

What happens if the homestead is located in two adjoining towns?

The Homestead Declaration must be filed in both towns.

What happens if the property is transferred to a new owner after April 1?

If the property is transferred (by sale or some other type of transaction) to a new owner after April 1, the new owner waits until the following year to file the Homestead Declaration if the property qualifies as a homestead.

What if I rent my homestead?

When you complete Form HS-122, enter the percentage of the dwelling that is rented. All rental use is required to be reported even if it is 25% or under. The rental use percentage is generally the same as reported on your Federal income tax return.

An example for calculating rental use is:

1,800 square foot home with 365 square feet rented. The 20.27% rental use (365/1,800 is rounded to 20.00%. Eighty percent of your home will be taxed at the resident rate.

What if I rent my homestead on April 1 and occupy it myself for fewer than 183 days in the calendar year?

You must withdraw the declaration using Form HS-122W. Because the Homestead Declaration is a prerequisite to filing a Property Tax Credit, you will no longer be eligible for the credit.

What happens if I rented property at the end of the year?

If you owned a Vermont homestead in the previous calendar year, sold the homestead before April 1, withdrew or did not file a Property Tax Credit and rented between the date of the sale and Dec. 31, you may be eligible for a Renter Credit Claim for rent paid in the previous calendar year.