Property Tax Rates for Investment Properties in Vermont
The average property tax rate in Vermont for investment properties is approximately 1.90% of the assessed property value. However, rates can vary significantly by location:
- Burlington area: 1.77% – 2.15%
- Rutland County: 1.85% – 2.20%
- Bennington County: 1.80% – 2.10%
- Windsor County: 1.75% – 2.05%
For investment properties specifically, Vermont uses a non-residential tax rate which is typically higher than owner-occupied residential rates. Non-residential properties are taxed at the state rate of $1.612 per $100 of assessed value (2023 rate).
Frequently Asked Questions
Q: Do investment properties pay higher tax rates than primary residences in Vermont?
Yes, investment properties are taxed at the non-residential rate, which is typically 15-25% higher than residential rates.
Q: How often are properties reassessed in Vermont?
Properties are typically reassessed every 3-5 years, depending on the municipality.
Q: Are there any property tax exemptions for investment properties?
Generally no, tax exemptions are primarily for owner-occupied primary residences.
Q: When are property taxes due in Vermont?
Most municipalities collect property taxes quarterly, with specific due dates varying by location.
Q: How is property value assessed in Vermont?
Properties are assessed at 100% of fair market value based on recent comparable sales.
Q: Can I appeal my property tax assessment?
Yes, property owners can appeal assessments through their local Board of Civil Authority.
Q: Are there any special considerations for multi-family investment properties?
Multi-family properties are taxed at non-residential rates but may have additional municipal fees.
The Bottom Line
Vermont’s property tax rates for investment properties are among the highest in the nation. Investors should carefully calculate these costs into their investment analysis and consider the impact of the non-residential tax rate on their returns. Working with a local tax professional and real estate agent can help ensure accurate budget planning for property tax expenses.