Vermont Real Estate Transfer Tax Calculator

Vermont's Property Transfer Tax under 32 V.S.A. Section 9602 splits into two very different schedules depending on how the property will be used. For a principal residence, the first $200,000 of value is taxed at just 0.5%, and everything above that is taxed at a combined 1.47%, the base 1.25% rate plus a 0.22% Clean Water Surcharge. Non-principal-residence property, including second homes, rentals, and investment purchases, instead faces a flat 3.40% rate (3.62% with the surcharge) on the entire value, more than double the effective rate on a comparable primary residence.

Vermont is also unusual among taxed states in assigning payment to the buyer rather than the seller, a reversal of the norm found in most other states with a transfer tax. This calculator applies the principal-residence schedule as its default, since that is the applicable schedule for the large majority of Vermont home purchases; a second-home or investment purchase should budget for the substantially higher flat non-principal-residence rate instead.

Using the calculator's baseline $380,000 sale price:

• Sale Price: $380,000
• First $200,000 at 0.5%: $200,000 × 0.005 = $1,000.00
• Remaining $180,000 at 1.47%: $180,000 × 0.0147 = $2,646.00
• Transfer Tax Due: $1,000 + $2,646 = $3,646.00
• Net Proceeds After Tax: $380,000 minus $3,646 = $376,354.00
• Effective Rate: 0.959%

At the higher-value scenario of $1,500,000, the first $200,000 is still taxed at $1,000.00, and the remaining $1,300,000 is taxed at 1.47%, or $19,110.00. Combined transfer tax due: $1,000 + $19,110 = $20,110.00, an effective rate of roughly 1.34%. The effective rate rises steadily as the purchase price grows, because a larger share of the price falls into the 1.47% tier and a shrinking share benefits from the lower 0.5% first-tier rate.

• Non-principal-residence purchases. Second homes, rental property, and investment real estate are taxed at a flat 3.40% (3.62% with the Clean Water Surcharge) applied to the entire purchase price, not the tiered schedule modeled here. This calculator assumes a primary-residence purchase.
• The homestead exemption for lower-value principal residences. Vermont exempts a portion of a qualifying principal residence's value (indexed periodically) from the general Property Transfer Tax under certain conditions; this calculator does not model that partial exemption.
• Town clerk recording fees. Vermont town clerks charge a separate flat recording fee to file the deed, unrelated to the value-based Property Transfer Tax calculated here.
• Current use (Act 250) land use change tax. Property enrolled in Vermont's current use program can trigger a separate land use change tax upon certain transfers, which is entirely distinct from the Property Transfer Tax and not modeled by this calculator.

• Applying the 1.47% rate to the entire purchase price. Vermont's Property Transfer Tax is marginal for principal residences, so only the portion above $200,000 is taxed at 1.47%; applying that rate to the full price overstates the tax, especially on lower-value homes.
• Using the principal-residence rate for a second home or rental. Vermont's flat 3.40% (3.62% with surcharge) rate for non-principal-residence property is more than double the effective rate most buyers see on their primary home, and applying the wrong schedule produces a materially wrong number.
• Forgetting the Clean Water Surcharge. The 0.22% surcharge is easy to overlook because it is layered on top of the 1.25% general tax rather than appearing as its own separate line item on most closing summaries, but it is part of the statutory 1.47% combined rate above $200,000.
• Assuming the seller pays. Vermont's Property Transfer Tax is a buyer-paid tax, unlike some states' conveyance taxes that fall on the seller by default; buyers budgeting a Vermont purchase need to include it in their cash-to-close figure.

• Vermont Department of Taxes: Property Transfer Tax guidance under 32 V.S.A. 9602
• Engine table: engine/tables/2026/state-real-estate-transfer-tax.json, Vermont entry, verified 2026-08-21