Vermont Closing Costs for Sellers in 2026: Transfer Tax, Fees and Real Numbers

Vermont’s property transfer tax depends on how the property is used: 0.5% on the first $200,000 of a principal residence, 1.25% general rate plus a 0.22% Clean Water Surcharge, and 3.40% plus the surcharge on some non-principal residences. The Department of Taxes says the buyer is liable, so sellers focus on commission, payoff and other costs.

Vermont’s transfer tax is tied to how the buyer uses the home

Vermont is one of the states where the transfer tax rate changes with the property and the buyer. The tax is the property transfer tax, and the Vermont Department of Taxes says that for deed transfers the buyer or transferee is liable for it. For a controlling interest acquisition, the person making the acquisition is liable.

That makes Vermont a buyer-side tax by statute. As the seller, you are not the liable party, though your contract can still allocate costs and a high tax can limit what a buyer will offer.

The Department of Taxes lists these rates:

Class	Rate	Notes
General rate	1.25%	Plus 0.22% Clean Water Surcharge, 1.47% combined
Principal residence, first $200,000	0.5%	Exempt from the Clean Water Surcharge
Principal residence, value above $200,000	1.25% + 0.22% = 1.47%	General rate plus surcharge
Non-principal residence	3.40% + 0.22% = 3.62%	A residence fit for year-round habitation that is not a long-term rental
VHCB, VHFA or USDA-supported principal residence	First $250,000 exempt, then 1.47%	Exemption 99

The Department of Taxes also notes the $250,000 threshold for exemption 99 and for certain mortgage-financed residences.

Worked example: a hypothetical $300,000 sale

The seller is not the liable party, so the seller’s statutory transfer tax is $0. The buyer’s bill depends on the class:

Buyer’s principal residence

First $200,000 x 0.5% = $1,000
Remaining $100,000 x 1.47% = $1,470
Total = $2,470

Non-principal residence at the 3.40% class

$300,000 x 3.62% (3.40% + 0.22%) = $10,860

Same house, same price, and the buyer’s tax is more than four times higher in the second case. That gap can change who can afford to buy your property, so know which class your likely buyer falls into. Which class applies to a given purchase is a question for the Department of Taxes or your closing attorney.

Other seller costs in Vermont

Agent commission. Negotiable.
Mortgage payoff. Your balance plus interest through payoff.
Prorated property taxes. Settled at closing according to your contract.
Title, escrow and recording fees. These vary. Who pays each is set by your purchase contract, so ask your title company or closing attorney what is customary locally.
Title insurance. We did not source a Vermont premium schedule, so ask for a quote.
Repairs and credits. Whatever you agree to after inspection.

What this means if you flip or wholesale in Vermont

When you buy a house to flip, you are the buyer, so the tax is yours. If your purchase falls in the non-principal residence class the Department of Taxes describes, the combined 3.62% is one of the largest purchase-side costs you will see anywhere. On a $200,000 buy, that is $7,240 (200,000 x 3.62%). Confirm the class with the Department of Taxes before you underwrite, because the lower rates are written for a principal residence.

On the exit, your end buyer is liable. If that buyer will live in the home, the lower principal residence rate can help your sale price. If the buyer is an investor, the higher rate can push their offer down.

For wholesalers, the assignment versus double close choice changes how many times the tax applies. An assignment usually means one deed to your end buyer, so there is one transfer and one liable buyer. A double close means two closings and two sets of costs: you are the buyer on the first and your end buyer is the buyer on the second, so the tax can be due twice. Ask your closing attorney how the Department of Taxes treats your structure.

For your maximum allowable offer:

Start from after-repair value and subtract repairs, holding costs, financing costs and your profit target.
Subtract the selling costs on your exit.
Subtract the property transfer tax on your purchase at the class that applies to you, plus title, escrow and recording on each closing.

Run your numbers

Automize CRM has a free closing cost calculator for building these costs into an offer.

This guide is general information, not tax or legal advice. Confirm your exact figures with your title company or closing attorney.

Sources

Vermont Department of Taxes: Property Transfer Tax

Rates checked October 24, 2026. General information, not tax or legal advice.

Common questions

Who pays the property transfer tax in Vermont?

The Vermont Department of Taxes says that for deed transfers the buyer or transferee is liable for the transfer tax. For acquisitions of a controlling interest, the person making the acquisition is liable. Your purchase contract can still allocate closing costs differently, so check it with your title company or closing attorney.

What are Vermont’s property transfer tax rates?

Per the Department of Taxes, the general rate is 1.25% and a Clean Water Surcharge of 0.22% applies on top. A principal residence pays 0.5% on the first $200,000 of value, then the general rate plus surcharge, 1.47%, above that. A qualifying non-principal residence pays 3.40% plus the surcharge, 3.62%.

What is the Vermont Clean Water Surcharge?

It is a 0.22% surcharge the Department of Taxes lists alongside the property transfer tax rates. The first $200,000 of a principal residence, taxed at 0.5%, is exempt from the surcharge. Above that, the 1.25% general rate plus the 0.22% surcharge gives a combined 1.47%.

Does a flip or rental purchase in Vermont pay a higher rate?

The Department of Taxes lists a 3.40% rate, plus the 0.22% surcharge, for a residence fit for year-round habitation that is not a long-term rental, and it is not the buyer’s principal residence. Whether your purchase falls in that class depends on the facts, so confirm with the Department of Taxes or your closing attorney.