Vermont Property Transfer Tax

When you purchase real estate in Vermont there is a tax that goes to the state of Vermont called the Vermotn Property Transfer Tax. It is typically part of your closing cost and for residential property the tax is one half of one percent on the first one hundred thousand dollars of the purchase price and then it is one and a quarter percent on the remaining purchase price. So, for example, if you buy a home for $300,000 your Vermont Property Transfer Tax will be .005 x $100,000 = $500 and then .0125 x $200,000 = $2500 for a total tax of $3000 for your right to purchase real estate in Vermont. Dont forget this tax when you are trying to determine what your closing cost will be when you purchase your home.