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Updated 2025 Tax Year

Rutland County
Property Tax Guide

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

8 Official Sources
8 min read
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Quick Facts
Tax Rate
1.5%-2.5% of assessed value (varies by municipality and homestead/non-homestead classification)
Exemptions
4+ Available
Section 1

How Property Tax Works

Rutland County, Vermont operates under a decentralized property tax system where individual towns and municipalities set their own tax rates to fund local services including education, municipal operations, and special districts. Property taxes are the primary funding source for public schools, road maintenance, fire protection, and other essential community services. The effective tax rates in Rutland County typically range from approximately 1.5% to 2.5% of assessed value, though this varies significantly by municipality and special taxing districts within each town.

Vermont uses a complex education funding formula that creates different tax rates for homestead properties (primary residences) versus non-homestead properties (second homes, investment properties, commercial). Property owners should note that actual tax bills can vary considerably even within the same town due to special assessments for services like water districts, fire districts, or municipal improvements. The county assesses properties at fair market value with periodic reappraisals, and most tax credits require annual applications to receive benefits.

Section 2

What Makes Up Your Tax Bill

ComponentRate RangeDescription
Municipal Tax$0.40-$1.20 per $100Local government services, roads, public safety
Education Tax (Homestead)$1.00-$1.60 per $100Public school funding for primary residences
Education Tax (Non-Homestead)$1.70-$1.90 per $100Public school funding for non-primary residences
Fire District$0.05-$0.25 per $100Fire protection services (varies by district)
Water/Sewer District$0.10-$0.50 per $100Utility services (where applicable)

Rates shown are for FY 2024-2025 and vary significantly by municipality within Rutland County. Towns like Rutland City, Killington, and West Rutland have different rate structures. Contact your local town clerk for specific current rates and special district assessments that may apply to your property.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Rutland 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 Rutland County are triggered by changes in property ownership, new construction, or significant property improvements that occur after the annual assessment date (typically April 1st). When you purchase property or complete construction during the tax year, the assessor calculates a prorated tax based on the change in assessed value and the remaining months in the fiscal year.

For example, if you purchase a home in September that was previously assessed at $200,000 but sells for $350,000, the assessor may adjust the assessed value to reflect current market value. The supplemental tax would apply to the $150,000 increase in assessed value, calculated from September through the end of the fiscal year (June 30th). This supplemental bill is separate from the regular quarterly payments and typically due within 30 days of issuance.

Example Calculation

$300,000 Property (Homestead with Property Tax Credit):

  • Assessed Value: $300,000
  • Homestead Property Tax Credit Applied: -$2,400
  • Net Tax After Credit: $4,200
  • Annual Tax: $4,200
  • Monthly Escrow: $350

$600,000 Property (Non-Homestead):

  • Assessed Value: $600,000
  • Limited Credits Available: -$0
  • Net Tax: $10,800
  • Annual Tax: $10,800
  • Monthly Escrow: $900

$1,000,000 Property (Homestead with Veteran's Credit):

  • Assessed Value: $1,000,000
  • Property Tax Credit + Veteran's Credit Applied: -$3,000
  • Net Tax After Credits: $17,500
  • Annual Tax: $17,500
  • Monthly Escrow: $1,458

Note: All credits require annual application. Homestead Property Tax Credit requires filing Form HS-122 by April 15th. Rates assume combined municipal and education taxes averaging 1.8% for homestead and 1.8% for non-homestead properties.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Rutland County require property tax escrow accounts, collecting monthly payments equal to your annual tax bill divided by 12, plus a cushion amount typically equal to 2-3 months of taxes. Your lender will pay the quarterly tax installments on your behalf: August 10th, November 10th, February 10th, and May 10th. Lenders must provide an annual escrow analysis showing collected amounts, paid taxes, and any required adjustments to monthly payments.

Property owners should verify that their lender has correct tax information, as Vermont's homestead versus non-homestead classifications can affect rates significantly. If you change your property's homestead status or qualify for new tax credits, notify your lender immediately as this will impact escrow calculations. You have the right to request escrow account details and can pay taxes directly if your loan-to-value ratio is sufficiently low and your lender agrees.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
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Section 6

Frequently Asked Questions

Q: When are property taxes due in Rutland County for FY 2024-2025? A: Quarterly installments are due August 10th, November 10th, February 10th, and May 10th. Late payments incur 8% annual interest charges.

Q: What tax credits are available and do they require applications? A: Primary credits include the Homestead Property Tax Credit (Form HS-122, due April 15th), Veteran's Credit, and Senior/Disability Credits. All require annual applications and are NOT automatic.

Q: How does the Homestead Property Tax Credit work? A: This credit limits property tax increases for primary residences but does not reduce market value assessments. It caps annual tax increases and provides income-based relief. You must file Form HS-122 annually by April 15th to qualify.

Q: When are properties reassessed in Rutland County? A: Individual towns conduct reappraisals on varying schedules, typically every 3-10 years. Assessment notices are mailed in spring with appeal deadlines usually in June.

Q: What are the penalties for late payment? A: Interest accrues at 8% annually from the due date. Properties become subject to tax sale proceedings if taxes remain unpaid for extended periods.

Q: Can I pay property taxes online? A: Most Rutland County towns offer online payment through their websites or third-party services. Contact your town clerk for specific payment portal information.

Q: How do special district taxes work? A: Fire districts, water districts, and other special services create additional tax assessments that vary by location. These appear as separate line items on your tax bill.

Q: What if I disagree with my property assessment? A: File a written appeal with your town's Board of Civil Authority within the specified deadline (typically 14 days after receiving assessment notice). Include comparable sales and evidence supporting your position.

Verified Sources

Backed by 8 Official Government Sources

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

01
Tax Doc
Property Tax Credittax.vermont.gov
02
2025 Lister Calendartax.vermont.gov
03
Important Dates - Fair Haven Vermontfairhavenvt.gov
04
County
Rutland County, VT | Data USAdatausa.io
05
Tax Doc
Homestead Exemption and Property Taxesnar.realtor
06
County
Rutland County, VT | Data USAdatausa.io
07
Bill Status H.887 (Act 183)legislature.vermont.gov
08
Corrective Action Plananrweb.vt.gov
All sources verified as of 2025 Tax Year

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