Vermont Homestead Declaration: Who Must File, When, and What Happens If You Don't

Updated September 28, 2026 by Tony Walton, Principal Broker, New England Landmark Realty

Quick Answer

If you own and live in a Vermont home as your primary residence on April 1, you must file a Homestead Declaration (Form HS-122) with the Vermont Department of Taxes every year, generally by April 15. Filing puts your home on the homestead education tax rate and lets you claim the property tax credit if you qualify. File late and your town can add a penalty of up to 3% or 8%. If you haven't filed by October 15, your home is taxed as nonhomestead, and you'll owe the higher rate, a penalty, and interest.

Key Takeaways

Two-Sentence Summary

The Homestead Declaration tells the state your home is your primary residence, so it's taxed at the homestead rate. It's a yearly filing, it's free on myVTax, and missing it is one of the costliest mistakes a Vermont homeowner can make.

If You Only Remember 3 Things

1. File every year by April 15, even if nothing has changed and even if you don't have to file an income tax return.
2. Your status is based on April 1: you must own and occupy the home as your domicile on that date.
3. File Schedule HI-144 with it if you want the property tax credit.

Quick Facts

• Form: HS-122, Homestead Declaration and Property Tax Credit Claim
• Status date: April 1
• Due: April 15; accepted through October 15
• Late penalty: up to 3% if the nonhomestead rate is higher, or up to 8% if it's lower than the homestead education rate
• Not filed by October 15: taxed as nonhomestead, plus penalty and interest
• Rental limit: a home leased for more than 182 days of the calendar year is nonhomestead

What Is a Vermont Homestead?

Vermont defines a homestead as the principal dwelling and the parcel of land around it, owned and occupied by a Vermont resident as their domicile. Property taxes in Vermont include a town (municipal) tax and a state education tax, and the education tax rate differs for homestead and nonhomestead property. Filing the declaration is how the state knows which rate applies to your home.

Who Must File

You must file if you own and occupy a Vermont home as your domicile as of April 1. That includes:

• Homeowners who aren't claiming a property tax credit
• People who aren't required to file a Vermont income tax return
• Owners who filed last year: the declaration doesn't carry over, so file again every year

Second homes, camps, and rental property don't file. They're nonhomestead property.

How to File

1. Go to myVTax, the state's free online filing site, or use the paper Form HS-122.
2. Have your SPAN handy. It's the School Property Account Number on your property tax bill.
3. Report any business or rental use of the home.
4. Add Schedule HI-144, Household Income, if you're claiming the property tax credit.
5. File by April 15.

Deadlines and Late Penalties

• April 1: the date that determines homestead status.
• April 15: filing deadline.
• After April 15: the declaration is still accepted through October 15, but your town may add a penalty of up to 3% if the nonhomestead rate is higher, or up to 8% if the nonhomestead rate is lower than the homestead education rate.
• After October 15: the property is classified as nonhomestead. You pay the higher of the two rates, a penalty, and any additional property tax and interest due.

Renting Part of Your Home

You can still file if you rent out part of your home, but your tax bill may show both the homestead and nonhomestead rates, split by how much of the property is used for rental or business. A property is nonhomestead if it's leased for more than 182 days of the calendar year or used only for commercial purposes, including rentals.

Buying or Selling a Home

• Buying: if you own and live in your new home on April 1, file a Homestead Declaration for it by April 15. If you close after April 1, ask your closing attorney how that year's tax bill is split and when to file.
• Selling: if you sell your homestead, your closing attorney can help you withdraw or update your declaration.
• Before you buy: the seller's tax bill may reflect their homestead status. If you're buying a second home, your bill will be at the nonhomestead rate, which can be different.

Frequently Asked Questions

Who has to file a Vermont Homestead Declaration?

Anyone who owns and occupies a Vermont home as their domicile as of April 1. File every year, even if nothing has changed and even if you don't have to file a Vermont income tax return.

When is the Vermont Homestead Declaration due?

April 15. The state accepts late declarations through October 15, but your town may add a penalty of up to 3% or 8%.

What happens if I don't file a Homestead Declaration?

If it isn't filed by October 15, your home is classified as nonhomestead. You pay the higher of the two education tax rates, a penalty, and any additional tax and interest.

Can I rent out my home and still file a Homestead Declaration?

Partly. A home leased for more than 182 days of the year, or used only as a rental, is nonhomestead. If you rent out part of your home, your bill may be split between the homestead and nonhomestead rates.

Is the Homestead Declaration the same as the property tax credit?

They're filed on the same form, HS-122, but they're different. The declaration sets your tax rate. The credit, claimed with Schedule HI-144, reduces your bill if your household income qualifies.

What to Do Next

Buying a Vermont home and want to know what the taxes will be? Call our office at 802-253-4711, reach Tony Walton directly at 802-233-4107, or contact us.

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• Vermont Property Tax Credit
• Vermont Property Taxes Explained
• Vermont Closing Costs Guide
• Vermont Home Buying Guide

Sources

• Vermont Department of Taxes, Homestead Declaration (who must file, deadlines, penalties, 182-day rule, definition)
• Vermont Department of Taxes, Your Vermont Property Tax Bill (homestead and nonhomestead rates on the bill)
• Vermont Department of Taxes, Property Tax Credit