Vermont has one of the highest property tax rates in the country at 1.90%, which significantly increases total monthly ownership costs beyond the purchase price. However, the state partially offsets this with some of the cheapest homeowners insurance in the nation at approximately $900 per year. Vermont's housing market has experienced strong demand driven by remote worker migration, with Burlington and surrounding communities seeing dramatic price increases. The state's small size and limited housing stock create persistent inventory constraints.
Calculate Your Monthly Payment
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Select a program to apply FHA/VA/USDA rules.
Funding fee is often financed into the loan.
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20.0% of home price
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Used to estimate potential Year‑2 escrow shock if taxes reset after purchase.
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Extra payments reduce balance faster and can end PMI sooner.
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Principal & Interest • Tax • Insurance • PMI • HOA
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Year‑2 Payment Shock (Property Tax Reassessment)
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Year‑2 estimate
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Note: This is an estimate. Tax timing, exemptions, and escrow rules vary by county and lender. Always verify with your county assessor and your lender’s escrow analysis.
Extra Payment Savings
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Disclaimer: Results shown are estimates for educational purposes only and do not constitute financial, tax, legal, or investment advice. Actual payments vary based on lender, credit score, loan type, and local assessments. Consult a licensed mortgage professional for your specific situation.
Vermont Mortgage Calculator Guide
Buying a home in Vermont requires understanding local costs. The median home price in the state sits around $407,000, which means your down payment and loan amount will heavily dictate your monthly expenses. Because Vermont has an average property tax rate of 1.9%, factoring this into your monthly mortgage payment is essential for an accurate budget.
Beyond principal and interest, homeowners insurance in Vermont averages $900 per year. Local weather risks and property age can push this number higher. By using our pre-loaded local averages, you get a realistic view of your true housing costs rather than just a basic principal calculation.
If you put down less than 20%, you will also need to pay Private Mortgage Insurance (PMI). Adjust the down payment field above to see exactly how your PMI drops off once you reach that 20% equity threshold in Vermont.
Vermont's average property tax rate of 1.90% is among the highest in the nation, well above the national average of 1.07%. Vermont funds its public schools largely through property taxes, which drives the elevated rates. The state does offer a Property Tax Credit (formerly the Renter Rebate and Homestead Declaration) for qualifying homeowners based on income and the property tax burden. On a $407,000 home, annual property taxes average approximately $7,733 — this is the dominant variable in total monthly ownership costs for Vermont homeowners.
Frequently Asked Questions
Vermont's average property tax rate is 1.90%, among the highest in the nation. This is primarily due to school funding through property taxes. On a $407,000 home, annual taxes average approximately $7,733 — adding over $640 per month to carrying costs. Vermont does offer a Property Tax Credit for qualifying homeowners based on income.
Vermont's statewide median is approximately $407,000. Burlington exceeds $490,000, South Burlington is near $520,000, and Montpelier is approximately $340,000. Vermont has seen significant appreciation from remote worker migration, with inventory extremely limited statewide.
The Vermont Housing Finance Agency (VHFA) offers the MOVE program with competitive mortgage rates, the ASSIST Second Mortgage providing up to $15,000 in down payment and closing cost assistance, and a Mortgage Credit Certificate (MCC) program. Special incentives are available for buyers in underserved communities and for first-generation homebuyers.
Vermont's housing market has been transformed by remote work migration. Buyers from Boston and New York — with much higher incomes than local Vermont residents — have competed aggressively for a very small housing stock, driving prices up dramatically. Vermont's limited new construction capacity (permitting challenges, limited buildable land, few large developers) means supply cannot keep pace with demand.
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