Property Transfer Tax is a tax on the transfer of title to real property in Vermont. The tax applies to both property transfers by deed and to acquisitions of a controlling interest in an entity with title to a property.
How to File and Pay
There are two ways to file your return when the transfer is by deed:
Online: Electronically file through myVTax.
Paper Return: Tax preparers who file more than five returns or certificate requests per calendar year are required to use myVTax for filing. If you file fewer than five returns, you can order forms online or by contacting us at (802) 828-2515.
How to Make a Payment
Tax is due within 30 days of the closing date.
Online: You may pay electronically at myVTax.
By Mail: Please make checks payable to the Vermont Department of Taxes and complete Form PTT-173, Property Transfer Payment Voucher. Mail your payment and voucher to:
Vermont Department of Taxes
133 State Street
Montpelier, VT 05633-1401
How to File and Pay Controlling Interest
To report the transfer or acquisition of a direct or indirect controlling interest in any person with title to property please file Form PTT-182, Property Transfer Controlling using myVTax. Tax is due within 30 days of the transfer. You may pay electronically with myVTax, or by check. Please make checks payable to the Vermont Department of Taxes and complete Form PTT-173, Property Transfer Payment Voucher.
If you have questions or if you need assistance filing returns, please contact the Department at (802) 828-6851 or tax.rett@vermont.gov.
Publications and Guidance
| Number | Title | |
|---|---|---|
| FS-1042 | Property Transfer Tax Return (PT-172): Forms Acceptable to File with Vermont Towns | |
| FS-1137 | Town Clerks: When to Mail Paper Versions of the Property Transfer Tax Return to the State | |
| FS-1276 | When to Apply the Property Transfer Tax and Clean Water Surcharge | |
| GB-1150 | myVTax Guide for Listers and Assessors: How to Search for Property Transfer Tax Returns | |
| GB-1130 | myVTax Guide: How to Login and File a Property Transfer Tax Return | |
| GB-1222 | myVTax Guide: Registering an Attorney, Tax Professional, or Landlord Account |
For Town Clerks
The following forms are acceptable to record:
| Date of Closing | Form Number |
|---|---|
| Prior to June 1, 2015 | PT-172, PT-172-S, PT-172-B (Order paper forms) |
| June 1, 2015 to December 31, 2015 | PTT-172, Vermont Property Transfer Tax Return (rev 6/17) |
| 2016 | PTT-172, Vermont Property Transfer Tax Return (rev 6/17) |
| 2017 | PTT-172, Vermont Property Transfer Tax Return (rev 6/17) |
| 2018 | PTT-172, Vermont Property Transfer Tax Return (rev 6/17) |
| 2019 | PTT-172, Vermont Property Transfer Tax Return (rev 8/22) |
| 2020 | PTT-172, Vermont Property Transfer Tax Return (rev 8/22) |
| 2021 | PTT-172, Vermont Property Transfer Tax Return (rev 8/22) |
Rate Schedule
When to Apply the Property Transfer Tax and the Clean Water Surcharge:
| Type of Property | Value Taxed | 0.5% Property Transfer Tax | 1.25% Property Transfer Tax | 0.2% Clean Water Surcharge |
|---|---|---|---|---|
| Not Principal Residence | All | ✔ | ✔ | |
| Principal Residence | $0-$100,000 | ✔ | ||
| Marginal Value > $100,000 | ✔ | ✔ | ||
| Principal Residence Purchased w/ VHFA, VCTF, or USDA Assistance | $0-$110,000 | |||
| $110,000 - $200,000 | ✔ | |||
| Marginal Value > $200,000 | ✔ | ✔ |
Exceptions
Principal Residence
- 0.005 on the first $100,000
- 0.0145 on balance
Mortgage obtained through VT Housing Finance Agency/VT Housing & Conservation Trust Fund or the US Department of Agriculture and Rural Development
- First $110,000 is exempt
- 0.0125 on balance on purchase price between $ 110,001 and $ 200,000
- 0.0145 on balance of purchase price over $ 200,000.
Lands enrolled in State use value appraisal programs
- 0.005 Properties transferred before July 1, 2011
- 0.0125 Properties transferred on or after July 1, 2011, and before June 16, 2015
- 0.0145 for properties transferred after June 16, 2015
Types of Loans Eligible for an Exemption
There are exemptions for the property transfer tax on the first $110,000 in value of the property transferred when the buyer obtains a mortgage loan:
- made by the U.S. Department of Agriculture and Rural Development or
- purchased by the Vermont Housing and Finance Agency.
- USDA Rural Development Direct Home Loans are exempt for the first $110,000.00 in value because they are mortgages that USDA Rural Development has committed to make to the borrower.
- Vermont Housing and Finance Agency purchased mortgages are exempt for the first $110,000.00 in value because they are mortgages that VHFA has committed to purchase from the originating lender.
- USDA Rural Development Guaranteed Loans are not exempt. USDA does not commit to make or purchase these types of mortgages. Instead, USDA guarantees a loan that is provided by a financial institution. USDA will pay the lender if the borrower defaults, but the borrower must then repay the USDA. This arrangement is neither a commitment to make a mortgage or a commitment to purchase a mortgage.
Frequently Asked Questions
When should you file a Property Transfer Tax return?
Transfer by Deed:
- A Property Transfer Tax Return must be filed with a town clerk whenever a deed(s) transferring title to real property is delivered to a town clerk for recording. A town clerk cannot record any deed unless it is accompanied by a completed Property Transfer Tax Return.
Transfer by Acquisition of Controlling Interest:
- A Property Transfer Tax Return must be filed directly with the Department of Taxes within 30 days after the transfer or acquisition. To report the transfer or acquisition of a direct or indirect controlling interest in any person with title to property please file Form PTT-182, Property Transfer Controlling Interest using myVTax. If you have questions, please contact the Department at (802) 828-6851 or tax.rett@vermont.gov.
What is a “Controlling Interest”?
For Corporations:
- 50 percent or more of the total combined voting power of all classes of stock of the corporation or
- 50 percent or more of the capital of the corporation or
- 50 percent or more of the profits of the corporation or
- 50 percent or more of the beneficial interest in voting stock of the corporation.
For Partnerships, LLCs, Associations, Trusts, and Other Entities:
- 50 percent or more of the capital of the entity or
- 50 percent or more of the profits of the entity or
- 50 percent or more of the beneficial interest in the entity.
Who is liable for the tax?
When a transfer is made by deed, the buyer or transferee is liable for the transfer tax.
When acquiring a controlling interest in an entity that holds title to property, the person making the acquisition is liable. All persons acting in concert to acquire a controlling interest are individually liable but should file only one return representing their combined acquisition of the controlling interest.
ADDITIONAL RESOURCES
Property Transfer Tax Statistics