The Vermont Property Transfer Tax must be paid before a deed conveying real estate can be recorded in the town or city land records. When recording a deed, the Vermont Property Transfer Tax Return (Form PTT-172) must also be filed.  This form is normally prepared by the attorney for the seller and provides details of the property sale and the tax due. The town or city clerk will look for evidence that the tax has been paid or that an exemption applies before recording the deed.

Who Pays It?

Unlike many states, Vermont requires the buyer to pay the transfer tax, but the buyer and seller can negotiate who will bear the responsibility. In some cases, a seller may agree to pay some or all of a purchaser’s transfer tax. 

Tax Rates:

The transfer tax rate is generally 1.45% of the property's value.

There is a reduced rate for buyers who intend to use the property as their primary residence. In this case, the rate is 0.5% of the first $100,000, plus 1.45% of any portion of the purchase price in excess of $100,000.

There is an exemption from paying transfer tax for conveyances between close family members for no consideration. There is also an exemption for conveyances between married couples. 

There are other very specific exemptions and discounts that occasionally apply, so it’s important to consult with a real estate attorney to determine the amount of transfer tax.

When Is It Due?

The tax is due at the time of the property transfer, commonly at the closing. The payment is made to the Vermont Department of Taxes, and the paperwork is usually processed by the attorney or closing agent handling the transaction.



Please note that tax rates, exemptions, and regulations can change over time. It's essential to consult with a local real estate attorney or the Vermont Department of Taxes for the most up-to-date information when you are involved in a property transaction.