Vermont Property Transfer Tax (PTT)

Information on this page reflects Vermont’s current guidelines. For legal or tax questions, contact a licensed professional.

When you buy property in Vermont, you’ll see a line item on your closing documents called the Property Transfer Tax (PTT). This is a standard state tax tied to real estate purchases. The amount depends on how you plan to use the property—your primary home, a second home, land, or an investment. Understanding the basics helps you avoid surprises at closing.

Vermont Property Transfer Tax Rates

Primary Residence

You must intend to make the home your primary residence within 12 months of closing.

0.5% on the first $100,000 of the purchase price
1.25% on the amount above $100,000

Non-Primary Residence

Second homes, investment properties, and land

1.25% on the entire purchase price

Land Leaving Current Use

If withdrawn from the Use Value Appraisal program within 3 years

Additional 5% tax

Who Pays the Transfer Tax?

In most Vermont transactions, the buyer pays the Property Transfer Tax as part of closing costs. This can be negotiated, but the general expectation is that the buyer covers it unless otherwise agreed in the purchase and sale contract.

Qualifying for the Primary Residence Rate

To qualify for the reduced primary-residence rate, Vermont looks at several indicators of where your main home is. These may include:

Your driver’s license address
Your income tax filing address
Where you physically spend most of your time
Voter registration
School enrollment for dependents (if applicable)

You do not need to already be a Vermont resident to qualify. You only need to intend to make the property your primary home within 12 months of closing.

If You Don’t Move In

If you claim the primary-residence rate but ultimately use the property as a second home or investment, the State may adjust the tax to the higher non-primary rate. This can include:

Paying the difference between the rates
Interest
Possible penalties

Vermont may verify residency using standard public records—mailing address, tax filings, driver’s license, or similar documents. Reassessments are uncommon, but they do occur when records clearly conflict.

Official Vermont Resources

Still unsure how the tax applies to your situation?

Reach out to a local agent or contact the Vermont Department of Taxes at 802-828-5860. They can explain how the tax would apply to a specific property type.

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