VT Property Tax Credit for 2026: Guidelines & Eligibility

January 9, 2026

The Vermont Property Tax Credit assists many Vermont homeowners with paying their property taxes. You may be eligible for a property tax credit based on your 2025/2026 property taxes if your property qualifies as a homestead and you meet the eligibility requirements described below. The maximum credit is $5,600 for the education property tax portion and $2,400 for the municipal property tax portion. This blog was created to help outline who can file, how to file, and important reminders.

Who is Eligible to File a Claim?

In order to file a Vermont Property Tax Credit Claim, you must meet all of the following eligibility requirements:

• Your property qualifies as a homestead, and you have filed a Homestead Declaration before the October 15, 2026, filing deadline. 
• You were domiciled* in Vermont for the entire 2025 calendar year. 
• You were not claimed as a dependent of another taxpayer for 2025. 
• You occupy the property as your homestead as of April 1, 2026. 
• Your Household Income did not exceed $115,400 in 2025. 

* Domicile is a legal concept that has implications for Vermont income tax, the statewide education tax, and property tax credit. See the definition of “domicile” (tax.vermont.gov/regulations)

What is a Homestead?

A Homestead Declaration (Form HS-122) must be filed each year so that you are correctly assessed the homestead tax rate on your property. A “homestead” is the principal dwelling and parcel of land surrounding the dwelling. It is your responsibility as the property owner to claim the property as a homestead if you meet, or expect to meet, the following requirements:

• You are a Vermont resident. 
• You own and occupy a homestead as your domicile as of April 1, 2026. 

Note: If you meet these requirements, except that your homestead is leased to a tenant on April 1, 2026, you may still claim it as a homestead if it is not leased for more than 182 days in the 2026 calendar year.

What Forms Are Needed to File?

You need the following two forms to file a claim: 

• Form HS-122: Section A: Homestead Declaration and Section B: Property Tax Credit Claim 
• Schedule HI-144: Household Income 

How to File Each Form:

• Online - Taxpayers may file returns using myVTax, our free, secure online filing site.
• Paper Returns - If you cannot file and pay through myVTax, you may still use the paper forms.​ The Homestead Declaration is filed using Form HS-122, the Homestead Declaration, and Property Tax Credit Claim. Use our filing checklist that follows to help you get started.

Many people file their Homestead Declarations at the same time they file their Vermont income tax returns. However, if you apply to extend the time to file your income tax return, the Homestead Declaration must still be filed by the April filing deadline. Even if a person is not required to file a Vermont Income Tax Return, the declaration must be filed by the deadline.

1. Homestead Declaration, Form HS-122, Section A

When filing this form, you need to have available the following:

• The property’s School Property Account Number (SPAN) which can be found on your property tax bill; and
• Your Social Security Number

Important reminders:

• If you are filing an income tax extension, be sure that the Homestead Declaration is still filed by the April due date.
• Sign the Homestead Declaration at the end of section B on the reverse side of the form.
• Declarations received after the April due date may receive a penalty of up to 8% of the education tax owed. This penalty is assessed by your municipality.
• Only one Property Tax Credit Claim is allowed per household per year.

2. Property Tax Credit Claim, Form HS-122 Section B

When filing a claim, you need to enter the following information from your 2025/2026 property tax bill:

• Housesite Value
• Housesite Education Property Tax
• Housesite Municipal Tax

Important reminders:

• You must answer the eligibility questions and enter household income information from Form HI144 before the claim can be processed.
• Generally, claims cannot be accepted after the October due date. Incomplete adjustment claims are considered not filed.
• Other information and forms may be needed, if applicable to your situation, such as:
• Form LRC-147, Statement of Rent for Mobile Home Park Lot Rent, Co-ops, and Land Trusts (provided by lot owner)
• Property Tax from Contiguous Property
• Ownership Interest (percentage of ownership). For example, if there is an owner who doesn’t reside in the home on April 1, enter the percentage of ownership of the owner(s) who does reside there.