Property Transfer Tax is a tax on the transfer of title to real property in Vermont. The tax applies to both property transfers by deed and to acquisitions of a controlling interest in an entity with title to a property.

What's New: Tax Rates and Exemptions

Act 181 (H.687) of 2024 made certain changes to the Property Transfer Tax rates and exemptions, as well as the Clean Water Surcharge. See below for the rate schedule starting August 1, 2024.

Effective August 1, 2024, the Property Transfer Tax rates are as follows:

• General Tax Rate: Remains the same at 1.25%

• Clean Water Surcharge Rate: Increases from 0.2% to 0.22% and increases exemption amounts

• Principal Residence Tax Rate: Special tax rate of 0.5% remains the same, but value subject to 0.5% rate (and exempt from the Clean Water Surcharge) increases from the first $100,000 of value paid to the first $200,000 of value paid.  The General Tax Rate of 1.25% plus the Clean Water Surcharge of 0.22% (total 1.47%) applies to the value paid above $200,000. See the FAQs below to learn how principal residence is defined.

• Non-Principal Residence Tax Rate (for a non-long-term rental residence fit for year-round habitation): Increases from 1.25% to 3.40% (3.62% including the Clean Water Surcharge).

• Exemption 99 (for a principal residence funded in part with a homeland grant through the Vermont Housing & Conservation Board (VHCB) or which the Vermont Housing Finance Agency (VHFA) or USDA Rural Development has committed to make or purchase): Increases exempt amount from the first $110,000 of value paid to the first $250,000 of value paid. The General Tax Rate of 1.25% plus the Clean Water Surcharge of 0.22% (total 1.47%) will apply to the value paid above $250,000.

New Exemptions from the Property Transfer Tax and Clean Water Surcharge:

• Abandoned Dwellings: blighted real estate owned and acquired by a municipality through condemnation or tax sale. Buyer must certify at the time of purchase that the dwelling will be rehabilitated and occupied as a principal residence and not as a short-term rental and prove within three years of purchase that rehabilitation of dwelling has been completed and dwelling is occupied as a principal residence.

• New ENERGY STAR Mobile Homes: new mobile homes as defined in 10 V.S.A. § 6201(1) that have an ENERGY STAR energy efficiency label and that are certified as a Zero Energy Ready Home by the U.S.  Department of Energy.

Form Changes

New: The 2024 legislative session changes will be reflected on the revised Property Transfer Tax Return (PTT-172 and associated instructions), which is scheduled to be available by August 1, 2024.

How to File

There are two ways to file your return when the transfer is by deed:

Online: Electronically file through myVTax.

Paper Return: Tax preparers who file more than five returns or certificate requests per calendar year are required to use myVTax for filing. If you file fewer than five returns, you can order forms online or by contacting us at (802) 828-2515.

How to Make a Payment

Tax is due within 30 days of the closing date.

Online: You may pay electronically at myVTax.

By Mail: Please make checks payable to the Vermont Department of Taxes and complete Form PTT-173, Property Transfer Payment Voucher. Mail your payment and voucher to:

Vermont Department of Taxes
133 State Street
Montpelier, VT 05633-1401

How to File and Pay Controlling Interest

To report the transfer or acquisition of a direct or indirect controlling interest in any person with title to property please file Form PTT-182, Property Transfer Controlling using myVTax. Tax is due within 30 days of the transfer. You may pay electronically with myVTax, or by check. Please make checks payable to the Vermont Department of Taxes and complete Form PTT-173, Property Transfer Payment Voucher.

If you have questions or if you need assistance filing returns, please contact the Department at (802) 828-6851 or tax.rett@vermont.gov.

Real Estate and Property Transfer Tax Forms and Guidance

New: The 2024 legislative session changes will be reflected on the revised Property Transfer Tax Return (PTT-172 and associated instructions), which is scheduled to be available by August 1, 2024.

myVTax Instructions

Tax Forms and Instructions

Fact Sheets and Guidance

Property Transfer Tax Statistics

For Town Clerks

The following forms are acceptable to record:

Rate Schedule Starting August 1, 2024

General Tax Rate: 1.25%

Non-Principal Residence Tax Rate: 3.4%

Clean Water Surcharge: 0.22%

Special Circumstances:

• Principal Residence Tax Rate

  • 0.5% on the first $200,000 of value paid

  • 1.47% on the balance of value paid above $200,000 (includes both General Tax Rate pf 1.25% and Clean Water Surcharge of 0.22%)

  • See the FAQs below to learn how principal residence is defined

• Non-Principal Residence Tax Rate (for a non-long-term rental residence for year-round habitation)

  • 3.62% (includes both the Non-Principal Residence Tax Rate of 3.40% and the Clean Water Surcharge of 0.22%)

• Exemption 99 Tax Rate (for a principal residence funded in part with a homeland grant through the Vermont Housing & Conservation Board (VHCB) or with the Vermont Housing Finance Agency (VHFA) or the U.S. Department of Agriculture and Rural Development has committed to make or purchase):

  • 0% on the first $250,000 of value paid

  • 1.47% on the balance of value paid above $250,000 (includes both the General Tax Rate of 1.25% and Clean Water Surcharge of 0.22%

Frequently Asked Questions