Vermont FY2027 Education Tax Rate Forecast

VT Dept of Taxes News

Published December 1st, 2025

Detected March 20th, 2026

Summary

The Vermont Department of Taxes has released its FY2027 education tax rate letter, forecasting an average increase of 11.9% for resident homeowners and the non-homestead tax rate. This projection is based on state law calculations and collaboration among state agencies. The letter highlights concerns about the cumulative impact of tax increases on families and seniors.

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What changed

The Vermont Department of Taxes has issued its FY2027 education tax rate letter, projecting an average increase of 11.9% for education property taxes for resident homeowners and setting the non-homestead tax rate. This forecast is a result of statutory calculations and inter-agency collaboration. The Commissioner of Taxes expressed significant concern that this projected increase, following substantial prior hikes, could deter families from settling in Vermont, impact local budget approvals, and affect seniors on fixed incomes.

While this is a forecast and not a final rule with a compliance deadline, it serves as a critical alert for property owners, municipal officials, and potentially employers in Vermont. The projected increase signals a significant financial impact on households and may necessitate budget adjustments or advocacy efforts by affected parties. Compliance officers should note this for financial planning and potential engagement with state legislative processes regarding education funding and property taxation.

What to do next

Review the projected education tax rate increase for FY2027.
Assess the potential financial impact on affected individuals and businesses.
Monitor legislative discussions regarding education funding and property tax reform.

Source document (simplified)

Commissioner of Taxes Releases FY2027 Education Tax Rate Letter

Press Release

Mon, 12/01/2025 - 12:00

MONTPELIER, Vt.— Vermont Commissioner of Taxes Bill Shouldice has released the December 1 education tax rate letter, which forecasts the education tax yields for resident homeowners and the non-homestead tax rate for the upcoming fiscal year (FY) 2027. This letter is based on specific calculations outlined in State law and is a result of collaboration between the Department of Taxes, Agency of Education, Department of Finance and Management, and Legislative Joint Fiscal Office.

This year’s letter projects education property tax bills to increase by a statewide average of 11.9% next fiscal year.

Commissioner Shouldice writes in the letter: “If this increase takes effect, Vermonters’ property taxes for education will have gone up nearly 41% over the past five years. If we allow this landscape to persist, we cannot seriously expect young and growing families to buy homes and settle in Vermont; local voters to approve budgets; or seniors on fixed incomes to retire comfortably in Vermont.”

Additional resources, including background information on the December 1 letter and education tax rates frequently asked questions are available on the Department of Taxes website.

Tags Education Property Tax Rate