Vermont's current transfer tax rate is up to $1.45 per $100.[1] So, for a house worth $400,247 — the median home price in the state — the transfer tax due will be $4,803. Cities and counties within the state may charge an additional fee on top of the standard rate, which can cause your total dues to increase.
Who pays transfer taxes in Vermont: The buyer or the seller?
In Vermont, the home buyer traditionally pays the transfer tax as part of closing costs. But keep in mind that, as with many other aspects of a home sale, this can be negotiated.
If the seller is quite motivated, you might be able to convince them to pay the transfer tax. Or you might offer to waive some of your contingencies in exchange for certain concessions. Again, the best way to assess potential negotiations is to consult with an agent familiar with your market.
Market conditions and negotiations could affect who ends up paying the transfer tax, however.
Does Vermont have a mortgage tax?
While some states have an additional tax on mortgages, Vermont does not. So if you're taking out a mortgage to purchase a property, you won't owe any additional tax on the mortgage amount, at least.Does Vermont have any transfer tax exemptions?
Most states allow exemptions from transfer taxes for certain types of transactions. Learn more about Vermont transfer tax exemptions.🏠 Planning on selling a home you inherited in Vermont? Read our guide to selling inherited property in Vermont to learn what you can expect from the process.
Can you deduct transfer taxes?
Unlike property taxes, you cannot deduct real estate transfer taxes from your annual income taxes. However, the seller may be able to include this amount in the "cost basis" of the property, which can help defer capital gains taxes.
When you sell your home for more than what you paid for it, you could be subjected to paying capital gains tax. Capital gain is calculated by subtracting the sale price from the price it cost you to acquire the property. For example, if you purchased a home for $150,000 and sold it for $200,000, your capital gain would be $50,000. However, if you paid the $200 transfer tax instead of the buyer, your capital gain becomes $49,800 instead.
Most home sales in Vermont will have no capital gains to claim. Individuals can exempt the first $250,000 in profit, while married couples filing jointly can deduct the first $500,000 of their profit. With a median home value far below these levels, in most cases, you won't need to worry about deductions in the first place. In the rare instance that it does, the transfer tax deduction can come in handy.
When do you pay transfer taxes in Vermont?
Transfer taxes are considered a closing cost and are due at closing.
💸 How much will your Vermont closing costs be? Our Vermont seller closing costs calculator can provide a detailed estimate.
Other considerations
The good news for buyers and sellers is that neither party has to figure out real estate transfer taxes on their own. The closing attorney will calculate this amount for you and include it as part of the closing costs on the settlement sheet. The transfer tax must be paid at the time of the closing in order for the new homeowner to take possession.
That said, responsibilities for ambiguous tax payments can be complicated. Buyers and sellers alike can benefit from partnering with an experienced local real estate agent who can help them navigate the complexities of the real estate transfer tax and other closing costs in Vermont.
Clever can partner you with a local real estate agent who knows how to deal with the state’s tax and helps negotiate a deal in your favor. What’s more, our agents charge only a 1.5% listing fee compared to the state average of 2.93%! The money you'll save can more than offset the cost of the transfer taxes.
By selling with a great full-service realtor, you can get top dollar for your home to offset any transfer taxes. Clever helps you find the best realtors in your local market AND negotiates lower commission rates with them.
With Clever:
- You'll only pay a 1.5% commission to list your home
- Sellers save an average $7,000 on realtor fees
- Offers come in 2.8x faster than the national average
Our matching service is 100% free with no obligation. Try Clever today!
Methodology
- Transfer tax amounts are based on government website information as of October 2025.
- We gathered our listing commission rate data from a September 2025 survey of 828 of agents nationwide.
- Home values, list prices, and sale prices are based on Zillow data as of September 2025.
