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Updated 2025 Tax Year

Addison County
Property Tax Guide

Everything you need to know about property taxes in Addison County, VT. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
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Quick Facts
Tax Rate
1.3044% education tax + municipal rates (varies by town within county's 23 municipalities)
Exemptions
4+ Available
Section 1

How Property Tax Works

Addison County, Vermont operates under a property tax system that primarily funds local education and municipal services. For the 2025 tax year, the county has an education property tax rate of 1.3044%, though this represents just one component of your total property tax bill. Property taxes in Addison County are the primary funding mechanism for public schools, local government operations, infrastructure maintenance, and various municipal services throughout the county's 23 towns and cities.

Your actual property tax rate will vary depending on your specific location within Addison County, as each municipality sets its own municipal tax rate in addition to the state education tax. Special taxing districts for services like fire protection, water, or library services may also apply additional assessments. The combined effective tax rate typically ranges from approximately 1.5% to 2.2% of assessed value, making Vermont's property tax burden among the higher rates nationally, though this varies significantly by individual municipality within the county.

Property owners should note that Vermont uses a "listed value" system where properties are assessed at their fair market value, with reappraisals conducted periodically by each town. The timing and frequency of these reappraisals vary by municipality within Addison County, affecting how quickly your assessment reflects current market conditions.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
State Education Tax1.3044%Statewide education funding for FY 2025-2026
Municipal TaxVariesLocal government services (varies by town)
Special DistrictsVariesFire, library, water districts (location-specific)
Total Effective Rate~1.5-2.2%Combined rate varies by municipality

The state education tax rate of 1.3044% applies uniformly across Addison County for the 2025-2026 fiscal year. However, your municipal tax rate depends on your specific town or city within the county. For example, Middlebury, Vergennes, and Bristol each set different municipal rates based on their individual budget needs and grand list values.

Additional special district assessments may apply depending on your property location. These can include fire district taxes, library district assessments, water district charges, or other special service districts. Some municipalities also levy separate assessments for capital improvements or debt service. Contact your local town clerk or assessor for the exact municipal and special district rates that apply to your specific property address.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Addison County, property taxes are due in two installments:

Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes in Addison County are triggered when property ownership changes hands or when new construction, additions, or major improvements are completed during the tax year. Unlike the annual tax bill based on the April 1st grand list, supplemental taxes capture the difference between the previous assessment and the new assessed value for the portion of the tax year following the triggering event.

When you purchase property in Addison County, the town assessor will typically issue a supplemental assessment reflecting any change in the property's listed value from the current grand list. Similarly, if you complete a home addition, new garage, or other substantial improvements, the assessor will calculate a supplemental tax based on the added value and the remaining months in the current tax year.

For example, if you purchase a home in July that was previously assessed at $400,000 but now reflects a market value of $500,000, you would owe supplemental taxes on the additional $100,000 in assessed value for the remaining 8 months of the tax year (August through March). At a combined tax rate of 2.0%, this would result in a supplemental bill of approximately $1,333 ($100,000 × 2.0% × 8/12 months).

Example Calculation

Example 1: $300,000 Home (Homestead Property)

  • Assessed Value: $300,000
  • Homestead Tax Credit Applied: Varies based on income
  • Combined Tax Rate: 1.8% (example municipal rate)
  • Annual Tax Before Credits: $5,400
  • Estimated Annual Tax After Homestead Credit: $4,500-$5,200
  • Monthly Escrow Payment: $375-$433

Example 2: $600,000 Home (Homestead Property)

  • Assessed Value: $600,000
  • Homestead Tax Credit Applied: Varies based on income
  • Combined Tax Rate: 1.9% (example municipal rate)
  • Annual Tax Before Credits: $11,400
  • Estimated Annual Tax After Homestead Credit: $9,800-$11,200
  • Monthly Escrow Payment: $817-$933

Example 3: $1,000,000 Property (Non-Homestead)

  • Assessed Value: $1,000,000
  • Available Credits: Limited (veteran exemption if applicable)
  • Combined Tax Rate: 2.1% (example municipal rate)
  • Annual Tax: $21,000
  • Monthly Escrow Payment: $1,750

Note: Homestead tax credits require filing Form HS-122 with your Vermont income tax return and cap the education tax burden based on household income. Credits are NOT automatic and must be applied for annually. Actual credits depend on income levels and filing status.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Addison County require property tax escrow accounts to ensure timely payment of your annual tax bill. Your lender will collect monthly escrow payments equal to approximately 1/12th of your estimated annual property tax bill, plus a small cushion as allowed by federal law. These funds are held in a non-interest-bearing escrow account and paid directly to your town treasurer when taxes become due.

Property taxes in Addison County are due in full by November 1st each year. Your lender will typically pay this bill in late October or early November using your accumulated escrow funds. If you pay your municipal portion by August 1st, you can receive a 2% discount on that portion of the bill - however, most lenders do not take advantage of this early payment discount since they pay the full bill at once in November.

Your lender will conduct an annual escrow analysis to determine if your monthly payments are sufficient to cover the upcoming year's taxes. If your property taxes increase due to reassessment or rate changes, your monthly escrow payment will be adjusted accordingly. You'll receive notice of any escrow payment changes, and shortages may be spread over 12 months or paid as a lump sum, depending on your lender's policies.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are property taxes due in Addison County for the current fiscal year? A: Property taxes are due in full by November 1st each year. You can receive a 2% discount on the municipal portion (not education tax) if paid by August 1st.

Q: What tax credits are available and do they require application? A: The main credit is the Homestead Property Tax Credit, which requires filing Form HS-122 with your Vermont income tax return by April 15th (or October 15th with extension). This credit is NOT automatic and limits your education tax burden based on income. Additional credits may be available for veterans or elderly residents but require separate applications.

Q: How does the Homestead credit work? A: The Homestead credit doesn't reduce your property's assessed value. Instead, it caps your education tax burden as a percentage of your household income. You must file annually using Form HS-122, and the credit amount varies based on your income level and filing status.

Q: How often are properties reassessed in Addison County? A: Reassessment schedules vary by municipality. Most towns conduct reappraisals every 3-6 years, though some may do them more frequently. Contact your local assessor for your town's specific reassessment schedule.

Q: What happens if I pay my taxes late? A: Taxes become delinquent after November 1st and are subject to penalties and interest charges. The specific penalty rates are set by each municipality, so contact your town treasurer for exact late payment terms.

Q: Can I pay my property taxes online? A: Online payment options vary by municipality within Addison County. Contact your specific town clerk or treasurer to determine available payment methods, which may include online portals, phone payments, or traditional mail.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with your town's Board of Civil Authority within 30 days of receiving your assessment notice. Contact your town clerk for specific forms and procedures, as the process varies by municipality.

Q: What if my property is in a special taxing district? A: Special districts for fire protection, libraries, water, or other services may add additional taxes to your bill. These rates vary significantly by location and are set independently by each district's governing board.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
Tax Doc
Tax Informationaddisonvt.gov
02
Tax Doc
Education Property Tax Ratestax.vermont.gov
03
Hi I'm Dave Sharpe, First a few words about my background. I've ...legislature.vt.gov
04
annual reportaddisonvt.gov
05
Tax Doc
Property Tax Credittax.vermont.gov
06
Cornwall Newslettercornwallvt.gov
07
Tax Doc
Property Tax Exemptionstax.vermont.gov
08
july-2020-990-index.csvirs.gov
09
exeterexeternh.gov
10
Bill Status H.887 (Act 183)legislature.vermont.gov
All sources verified as of 2025 Tax Year

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