H
HomePaymentHQ

Vermont's high effective property tax rate is the main driver of its monthly housing cost — the property tax line frequently rivals principal-and-interest for homes near the median price. The calculator below is pre-filled with Vermont's median home price and an estimated property tax bill of roughly $6,954 per year (about 1.83% of $380,000). Adjust the home price, down payment, and rate to match your real-world Vermont scenario — your monthly payment updates instantly.

Loan details

$
$
20.0% down · Loan amount $304,000
%
$
$
$
%
PMI typically isn't required when you put 20% or more down.
$
Pay off your loan faster and save on interest.
Estimated monthly payment
$2,630
Principal & interest: $1,972/mo

Payment breakdown

Monthly$2,630
  • Principal & Interest$1,972
  • Property Tax$580
  • Home Insurance$79
Loan amount
$304,000
Total interest
$405,826
Total cost of loan
$709,826
Payoff date
May 2056

Vermont mortgage and housing snapshot

Median home price$380,000
Average effective property tax rate1.83% of home value
Estimated annual property tax on median home$6,954 (~$580/mo escrowed)
Average homeowners insurance premium$950 / year
2026 conforming loan limit (most counties)$806,500
Transfer / recording taxVermont charges a Property Transfer Tax of 0.5% on the first $100,000 of price (1.25% above that for non-primary residences) and the buyer pays a Clean Water Surcharge of 0.2%.
Homestead / property tax capVermont homeowners must file an annual Homestead Declaration to be taxed at the homestead (lower) rate; income-eligible homeowners can also claim a Property Tax Credit that reduces the bill on a sliding scale.

Figures are 2025/2026 approximations from public data (Census, NAR, FHFA, NAIC, Tax Foundation). Use them for planning; confirm exact tax bills, insurance, and conforming limits with your lender, insurer, and county assessor.

Why Vermont's housing math is different

Property tax burden. Vermont's average effective property tax rate of about 1.83% of home value sits well above the U.S. national average of roughly 1.0%. Vermont homeowners must file an annual Homestead Declaration to be taxed at the homestead (lower) rate; income-eligible homeowners can also claim a Property Tax Credit that reduces the bill on a sliding scale. On the median Vermont home, that translates to roughly $6,954 a year — money that's escrowed into your mortgage payment whether you notice it or not.

Insurance and disaster risk. The typical Vermont homeowners policy runs about $950 per year. That's well below the national average, helping Vermont stay one of the friendlier states for total monthly housing cost.

Closing-cost reality. Vermont charges a Property Transfer Tax of 0.5% on the first $100,000 of price (1.25% above that for non-primary residences) and the buyer pays a Clean Water Surcharge of 0.2%. Add roughly 2-3% of the price for typical lender fees (origination, appraisal, title, escrow), and Vermont buyers should plan for total closing costs in the 3-5% range on top of the down payment.

Loan-limit context. The 2026 conforming loan limit for most counties in Vermont is $806,500. The median Vermont home price sits comfortably below this ceiling, so most buyers can use a standard conforming loan rather than a jumbo.

Common loan types in Vermont

Conventional

The default for most Vermont buyers with 5%+ down and a 620+ credit score. Loans up to $806,500 (most counties) avoid jumbo pricing. PMI is required under 20% down and auto-cancels at 22% equity.

FHA

Backed by the Federal Housing Administration. Low 3.5% down with credit scores down to 580. Popular with first-time Vermont buyers, but FHA mortgage insurance (MIP) usually stays for the life of the loan unless you put 10%+ down.

VA

Zero-down loans for eligible active-duty service members, veterans, and qualifying surviving spouses. No PMI and competitive rates. Vermont veterans should compare VA pricing against conventional — the no-PMI advantage often wins below 20% down.

USDA

Zero-down loans for buyers in USDA-designated rural and many suburban areas with moderate incomes. Vermont's urban metros are usually outside USDA-eligible zones, but smaller-town and suburban-fringe properties may still qualify.

Run any of these scenarios in the calculator above by adjusting the down payment and rate. For a side-by-side, see our FHA vs. conventional, VA loan, and USDA loan guides.

Vermont mortgage FAQ

What are typical mortgage rates in Vermont in 2026?

Mortgage rates in Vermont closely track national averages because most home loans are sold to Fannie Mae, Freddie Mac, or government-backed agencies that price loans on a national basis. Your actual rate depends far more on your credit score, down payment, loan term, and discount points than on the state you live in. Use the calculator above with your target rate to see how a small rate move changes your Vermont monthly payment.

How much is property tax on a typical home in Vermont?

Vermont's average effective property tax rate is approximately 1.83% of home value. On a median $380,000 home in Vermont, that works out to roughly $6,954 per year, or about $580 per month escrowed into your mortgage payment. Actual bills vary by county and city.

What is the 2026 conforming loan limit in Vermont?

For most counties in Vermont, the 2026 conforming loan limit for a one-unit home is $806,500. Loans above that are 'jumbo' loans and typically have stricter credit and down-payment requirements. Some high-cost counties in Vermont may use a higher limit set by the FHFA — check your specific county before locking a rate.

How much homeowners insurance should I budget for in Vermont?

The average annual homeowners insurance premium in Vermont is roughly $950. Coastal, wildfire, hail, and flood-prone areas can be substantially higher. Your lender will require proof of coverage at closing, and the premium is typically escrowed monthly along with property tax.

Do I have to pay PMI on a Vermont mortgage?

PMI rules are federal, not state-specific. Most conventional Vermont mortgages require private mortgage insurance when your down payment is below 20% of the home's price, typically 0.3%-1.5% of the loan amount per year. PMI auto-cancels at 22% equity per the federal Homeowners Protection Act. FHA loans use MIP instead, and VA and USDA loans skip PMI entirely.

What transfer or recording taxes do Vermont buyers and sellers pay?

Vermont charges a Property Transfer Tax of 0.5% on the first $100,000 of price (1.25% above that for non-primary residences) and the buyer pays a Clean Water Surcharge of 0.2%.

Is there a homestead exemption in Vermont?

Vermont homeowners must file an annual Homestead Declaration to be taxed at the homestead (lower) rate; income-eligible homeowners can also claim a Property Tax Credit that reduces the bill on a sliding scale.

More calculators