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School Taxes Based on Income, 2012

August 16, 2012  |  Sarah Lyons  |  no comments yet
Map |State Budget & Tax

Since the passage of Act 60 in 1997, Vermont residents have had two options for calculating their school taxes. On their primary residence and up to two acres of land, the school tax can be based on the property value or on their household income. While the Legislature has made changes over the years and limited eligibility for paying based on income, 1 about two-thirds of Vermonters pay school taxes based on income.

All school taxes in Vermont are state taxes and go to the state Education Fund. The tax rates for either the property-based tax or the income-based tax vary from town to town depending on how much the community votes to spend, per pupil, on its schools. The income-based rates, like the property tax rates on the fair market value of a home, are the same in districts with the same per-pupil spending.

All non-residential property—businesses, second homes, and land—is taxed based on its fair market value at a single rate throughout the state as set by the Legislature. Unlike the residential rates, the non-residential rate does not vary with per pupil spending. For the current school year, the non-residential rate is $1.38 per $100 of fair market value.

In 2012, which covers the 2012-2013 school year, the income-based school tax rates range from 1.80 percent of household income to 3.60 percent. The map below shows the 2012 income-based school tax rates in each town. Towns with the same rates have the same per-pupil spending.

Property tax rates by town can be found at the Vermont Tax Department website. The site lists both the equalized tax rate—the rate assuming all property is assessed at 100 percent of fair market value—and the rates that appear on local property tax bills, which are based on the current, locally assessed value.

Despite regular promises to simplify Vermont’s school funding system, recent changes to the law, Act 68, have made things more complicated. A simpler and fairer way to fund our schools would be to eliminate the school property tax on primary residences. All residents would continue to pay the income-based tax, with rates varying from town to town according to per-pupil spending, and all non-residential property would be taxed at the uniform non-residential rate.

Alburg || 2.49% || data Highgate -- 2.24% Franklin -- N/A Berkshire -- 2.15% Richford -- 2.08% Jay -- 2.47% Troy -- N/A Newport Town -- 2.75% Derby -- 2.54% Holland -- 2.40% Norton -- 1.82% Canaan -- 2.04% Swanton -- 2.21% Isle La Motte -- 2.74% Lemington -- 1.80% Bloomfield -- 1.80% Brunswick -- 1.80% Maidstone -- 2.39% Granby -- 2.61% East Haven -- 1.91% Enosburg -- 2.29% Sheldon -- 2.26% Fairfield -- 2.62% St. Albans City -- 2.62% North Hero -- 2.79% Bakersfield -- 2.32% Montgomery -- 2.22% Westfield -- 2.43% Lowell -- 2.26% Albany -- 2.80% Irasburg -- 2.20% Barton -- N/A Glover -- 2.44% Sheffield -- N/A Greensboro -- 2.91% Wheelock -- 2.56% Stannard -- 3.11% Walden -- 2.39% Hardwick -- 2.72% Wolcott -- 2.57% Craftsbury -- 3.45% Eden -- 2.84% Hyde Park -- 2.64% Belvidere -- 2.98% Johnson -- 2.69% Averill -- 1.80% Ferdinand -- 1.80% Lewis -- 1.80% Averys Gore -- 1.80% Brighton -- 2.48% Newark -- 2.95% Westmore -- 2.34% Morgan -- 2.66% Charleston -- 2.38% Brownington -- 2.14% Coventry -- 2.44% Newport City -- 2.49% Sutton -- 2.58% Burke -- 2.86% Victory -- 1.80% Lunenburg -- 2.59% Guildhall -- 1.85% Concord -- N/A Waterford -- 2.74% St. Johnsbury -- 2.36% Lyndon -- 2.60% Kirby -- 2.82% Barnet -- 2.86% Peacham -- 2.54% Cabot -- 2.76% Elmore -- 2.34% Morristown -- 2.32% Stowe -- 2.77% Worcester -- 2.76% Calais -- 2.88% Marshfield -- 2.54% Groton -- 2.74% Ryegate -- 2.74% Woodbury -- 3.02% Danville -- 2.57% St. Albans Town -- 2.47% Grand Isle -- 2.60% South Hero -- 2.33% Georgia -- 2.45% Milton -- 2.46% Colchester -- 2.49% Fairfax -- 2.32% Westford -- 2.53% Essex -- 2.71% Fletcher -- 2.42% Waterville -- 2.94% Cambridge -- 2.59% Underhill -- 2.49% Plainfield -- 2.54% East Montpelier -- 2.85% Montpelier -- 2.64% Middlesex -- 2.78% Waterbury -- 2.66% Bolton -- 2.80% Richmond -- 2.55% Jericho -- 2.63% Williston -- 2.64% Winooski -- 2.39% Burlington -- 2.55% South Burlington -- 2.77% Shelburne -- 2.67% Charlotte -- 2.81% St. George -- 2.81% Hinesburg -- 2.81% Huntington -- 2.56% Duxbury -- 2.69% Moretown -- 2.84% Berlin -- 2.88% Barre City -- 2.30% Barre Town -- 2.26% Orange -- 2.82% Topsham -- 2.72% Newbury -- 2.70% Bradford -- 2.76% Corinth -- 2.72% Washington -- 2.72% Williamstown -- 2.60% Northfield -- 2.60% Waitsfield -- 2.68% Fayston -- 2.79% Buel's Gore -- 1.80% Starksboro -- 2.74% Monkton -- 2.85% Ferrisburgh -- 2.71% Fairlee -- 3.25% West Fairlee -- 3.25% Vershire -- 3.25% Chelsea -- 2.82% Brookfield -- 2.77% Roxbury -- 2.50% Warren -- 2.49% Lincoln -- 2.84% Bristol -- 2.78% Ripton -- 3.07% Thetford -- 3.16% Strafford -- 2.80% Tunbridge -- 2.61% Randolph -- 2.62% Braintree -- 2.74% Granville -- 2.29% Hancock -- 3.18% Rochester -- 2.47% Bethel -- 3.11% Royalton -- 2.80% Sharon -- 2.87% Norwich -- 3.31% Hartford -- 2.56% Pomfret -- 3.10% Barnard -- 2.89% Stockbridge -- 3.06% Pittsfield -- 3.53% Hartland -- 3.01% Woodstock -- 3.00% Bridgewater -- 2.88% Killington -- 2.88% Mendon -- 2.19% Windsor -- 2.70% West Windsor -- 2.69% Reading -- 3.60% Plymouth -- 2.38% Shrewsbury -- 2.69% Clarendon -- 2.80% Ira -- 2.32% Weathersfield -- 3.07% Baltimore -- 3.01% Cavendish -- 2.83% Ludlow -- 3.06% Mount Holly -- 3.08% Wallingford -- 2.87% Middletown Springs -- 3.02% Wells -- 2.42% Springfield -- 3.20% Chester -- 2.57% Andover -- 2.59% Weston -- 2.68% Mount Tabor -- 2.29% Danby -- 1.80% Pawlet -- 2.46% Rockingham -- 2.74% Grafton -- 2.52% Windham -- 2.75% Londonderry -- 2.80% Landgrove -- 2.86% Peru -- 3.05% Dorset -- 2.86% Rupert -- 2.42% Westminster -- 2.71% Athens -- 2.79% Brookline -- 2.57% Townshend -- 2.69% Jamaica -- 2.86% Winhall -- 3.50% Manchester -- 2.87% Sandgate -- 2.80% Arlington -- 2.92% Sunderland -- 2.68% Stratton -- 3.05% Shaftsbury -- 2.46% Glastenbury -- 1.80% Somerset -- 1.80% Bennington -- 2.40% Woodford -- 3.02% Searsburg -- 2.53% Wilmington -- 3.14% Marlboro -- 2.61% Brattleboro -- 3.09% Pownal -- 2.50% Stamford -- 2.32% Readsboro -- 1.80% Whitingham -- 3.05% Halifax -- 2.72% Guilford -- 2.88% Vernon -- 2.97% Wardsboro -- 2.80% Dover -- 2.81% Newfane -- 2.65% Putney -- 3.07% Dummerston -- 3.07% Vergennes -- 2.50% Panton -- N/A Addison -- 2.68% Bridport -- 3.13% Shoreham -- 3.14% Orwell -- 2.35% Benson -- 2.54% West Haven -- 2.29% Fair Haven -- 2.47% Tinmouth -- 2.83% Poultney -- 2.81% Castleton -- 2.58% Hubbardton -- 2.41% Sudbury -- N/A Whiting -- N/A Cornwall -- 3.05% Weybridge -- 3.08% West Rutland -- 2.59% Proctor -- 2.77% Rutland City -- 2.47% Rutland Town -- 2.66% Brandon -- 2.58% Pittsford -- 2.73% Chittenden -- 2.75% Leicester -- 2.74% Salisbury -- 3.05% Middlebury -- 3.02% New Haven -- 2.92% Waltham -- 2.50% Goshen -- 2.83%

Data source: Vermont Department of Taxes

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  1. For example, regardless of income, all resident homeowners must pay property taxes on land beyond two acres surrounding their land. Residents with household income less than $90,000 who choose to pay the income-based tax must also pay property taxes on their home value in excess of $500,000. Those with incomes of $90,000 or more must pay property taxes on home value in excess of $200,000.[↩]

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