Income-based School Tax Map
Many Vermonters have a choice when it comes to calculating their school taxes. For the taxes on their primary residence and up to two acres of land, they can either pay a property tax based on the tax rate for their school district or pay a percentage of their household income. While all school taxes in Vermont go to the state Education Fund, the income rate in each town—like the property tax rate—is based on how much the community votes to spend per pupil on their schools. Also like the school property tax, any two communities with the same per-pupil spending have the same income rates.
Generally speaking, households with incomes of less than $90,000 are eligible to elect the income option for school taxes. The system gets a bit more complicated for households with income over $90,000. They have an income option, but they also pay school property taxes on home values greater than $200,000. And all resident homeowners pay school property taxes on land beyond two acres surrounding their home.
In 2009, more than 100,000 Vermont households—62% percent—paid income-based school taxes. The rates, which vary depending on voted per-pupil spending of the local school district, range from 1.80 percent of household income to 3.25 percent in 2010. The map below shows the 2010 income-based school tax rates in each town.
Property tax rates by town can be found at the Vermont Tax Department website. The site lists both the equalized tax rate, which is 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.
