The Vermont Commissioner of Taxes has released the annual tax rate forecast, indicating another property tax rate increase is likely in Fiscal Year 2026.
The Vermont Tax Department is projecting that property tax bills are likely to increase by a statewide average of 5.9 percent in fiscal year 2026 due to “a projected increase in education spending of nearly $115 million, as well as pressure from the $69 million of one-time money used last year.” A higher rate was offset by projected unallocated revenue from fiscal year 2025 of about $33 million.
Governor Phil Scott, a Republican, released a statement saying residents cannot afford any tax increase and “with this projected increase, Vermonters will have seen a 33% increase in education property taxes in the last three years.”
