Skip to Today's New Listings

Vermont Homestead Declaration and Property Tax Credit Guide for 2025

If you own a home in Vermont and use it as your primary residence, you are likely required to file a Homestead Declaration each year. This guide provides detailed, step-by-step help for completing Vermont's Form HS-122 and Schedule HI-144—the essential tax forms to ensure your property is taxed at the homestead education property tax rate and that you’re eligible for a property tax credit claim.

What Is the Vermont Homestead Declaration?

The Vermont Homestead Declaration is a form all eligible homeowners must file each year with the Department of Taxes to classify their property as a homestead. This ensures your residence is taxed at the homestead education property tax rate, which is typically lower than the nonresidential rate.

To qualify, the homestead must be your principal dwelling and parcel of land as of April 1, 2025. Filing the homestead declaration and property tax credit claim may reduce the total taxes owed on your property.

Who Needs to File a Homestead Declaration in Vermont?

Every Vermont resident who owns and occupies a home as their primary residence on April 1 must file a homestead declaration. This includes seasonal residents who meet domicile requirements and property owners whose homes are not leased for more than 182 days of the year.

You must file even if:

• You’re not claiming a property tax credit
• You’re over age 65 or exempt from other income tax
• You’ve recently purchased a parcel and changed the use to residential

Step-by-Step: How to File Form HS-122 and Schedule HI-144

To submit your homestead declaration and property tax adjustment, you'll need to file both Form HS-122 and Schedule HI-144 for tax year 2024 during the 2025 filing season.

1. Visit MyVTax to access e-filing for HS-122 and HI-144
2. Enter property details, including your SPAN and town from the grand list
3. Confirm parcel ownership and use (residential only)
4. Report total household income from all sources on HI-144
5. Submit the claim by April 15 to avoid late filing penalties

If you're unsure about any section, consult the booklet includes forms and instructions provided by the Department of Taxes or reach out to a tax professional.

Filing Deadlines and Late Penalties

Your homestead declaration must be filed annually by April 15. You may amend the declaration through October 15 without penalty. If you file late, your property could be assessed at the higher of the two rates—the non-homestead rate—which can result in additional property tax and interest.

Keep in mind:

• April 1 determines homestead status for tax purposes
• You may still file after this date but must pay the difference if taxed incorrectly
• Timely filings are critical for vermont homeowners seeking a property tax credit claim

What Is the Property Tax Credit and How Is It Calculated?

The property tax credit reduces your final tax bill based on household income and education property tax rates. It’s calculated using the income and home value information submitted with Schedule HI-144.

Eligibility is based on your vermont income tax return and adjusted using tools like the property tax credit calculator. For 2025, most filers will receive their credit as a reduction on their August bill.

Common Mistakes When Filing Homestead Forms

Watch out for these common errors that can delay or reduce your credit claim:

• Filing the HS-122 but forgetting to submit HI-144
• Reporting incorrect SPAN or address information
• Failing to report business income or rental use of the homestead

Filing through MyVTax helps avoid many of these issues with built-in validation and reminders. You can also amend previously submitted forms within three years of the April filing.

When and How to Use Form HS-122W

Form HS-122W is used to withdraw a previously filed homestead declaration—such as if your homestead is leased for over 182 days or the property is sold. Submit this form online or by mail using the current tax forms and instructions provided on the state website.

You may also need to file this form if your property has been subdivided and is no longer a single qualifying parcel.

How to File and Pay Through MyVTax

The Vermont Department of Taxes encourages all filers to file and pay through MyVTax, the state’s secure online portal. This system allows users to:

• Access their prior year filings and amendment options
• View education property tax rates
• Track credit status and receive electronic confirmations

Visit myvtax.vermont.gov to begin or manage your 2025 submission.

Frequently Asked Questions

• Who is required to file a Homestead Declaration in Vermont?
  All Vermont homeowners who live in the home as their primary residence as of April 1.
• What forms do I need to submit?
  You’ll need to file HS-122 and HI-144 each year, even if not claiming the credit.
• What if I file late?
  Your home may be taxed at the non-homestead rate and you could owe additional property tax and interest.
• Can I amend my filing?
  Yes, amendments can be submitted for up to three years using MyVTax or a paper form.
• Do I still qualify if I rent out part of my home?
  You may still claim it as a homestead if the entire property is not leased for more than 182 days.

Key Takeaways

• Vermont homestead declaration and property tax credit claim are due annually by April 15
• Use MyVTax for faster, more accurate filing
• Submit both Form HS-122 and Schedule HI-144 to avoid delays or missed credits
• Late or incorrect filings can result in your home being taxed at a higher rate
• Search Vermont homes or visit our Ultimate Buyer’s Guide for related info