Vermont's Property Tax Credit does not have a minimum age, any Vermont homestead owner with household income under $115,400 can claim up to $8,000 back against their property-tax bill. It is not labeled a senior program, but it delivers some of the largest property-tax relief in the country for fixed-income homeowners, which makes it the central tool for Vermont senior property tax relief. This guide explains who qualifies, how the credit is calculated, what the forms are and how renters fit in.
The benefit is claimed on your Vermont income-tax return, not a separate application to a county office.
In This Guide
- Key Takeaways
- Vermont Senior Property Tax Relief at a Glance
- Not Age-Specific, But Designed for Fixed Incomes
- Who Qualifies for the Property Tax Credit
- How the Credit Is Calculated
- Forms HS-122 and HI-144
- The Vermont Renter Credit
- How to Claim Your Credit
- Frequently Asked Questions
- Next Steps
Vermont Senior Property Tax Relief at a Glance
| Item | Detail |
|---|---|
| Program name | Property Tax Credit |
| Age requirement | None |
| Property type | Vermont homestead (primary residence) |
| Income limit | $115,400 (2025 household income) |
| Maximum credit | $8,000 ($5,600 education + $2,400 municipal) |
| How it works | Formula comparing property-tax burden to income |
| How to file | Schedule HI-144 filed with Form HS-122 (Vermont income-tax return) |
| Renters | Separate Renter Credit on the same return |
| Authority | Vermont Department of Taxes |
Vermont Senior Property Tax Relief: Not Age-Specific, But Designed for Fixed Incomes
Vermont's Property Tax Credit is one of the broadest property-tax relief programs in the country, but it is not marketed as a senior program. That framing matters, because seniors searching for Vermont senior property tax relief sometimes miss it.
The credit is available to any Vermont homestead owner under the income threshold, regardless of age. A 40-year-old and a 75-year-old with identical incomes and property-tax bills get the same credit. What makes it particularly valuable for seniors is that their incomes are typically lower and more fixed than working households, which means their property-tax burden as a share of income is higher and the credit's relief is proportionally larger.
Vermont does not offer a separate senior-specific property-tax exemption or circuit breaker on top of this program. The Property Tax Credit is the primary vehicle for Vermont senior property tax relief. If you are a Vermont homeowner with income under $115,400 and you are not claiming this credit, you are leaving money on the table.
Who Qualifies for the Property Tax Credit
To claim Vermont's Property Tax Credit, you must meet all of the following:
- Own and occupy a Vermont homestead. A homestead is your primary Vermont residence. It must be designated as a homestead on your Vermont property-tax bill. Vermont law requires you to file a homestead declaration (Form HS-122) each year to maintain that designation.
- Have household income at or below $115,400 for 2025. Vermont defines household income broadly, including Social Security benefits, pension income, wages, interest, dividends, capital gains and most other income sources. This is not the same as federal adjusted gross income; read the Vermont instructions carefully.
- Be a Vermont resident for the full tax year. Part-year residents may have reduced eligibility; check with the Vermont Department of Taxes.
There is no age floor. A senior in their 80s and a middle-aged homeowner qualify under the same rules.
How the Credit Is Calculated
The Vermont Property Tax Credit is not a flat dollar amount. It is based on a formula that compares your property-tax burden to your household income. The credit covers the portion of your property taxes that exceed a threshold percentage of your income, up to the maximum.
The credit has two components:
- Education property-tax component: Up to $5,600 of relief against the education portion of your property-tax bill.
- Municipal component: Up to $2,400 of relief against the municipal portion of your property-tax bill.
Combined, the maximum is $8,000.
The formula favors homeowners whose property-tax bills are high relative to their income. A senior on Social Security with a modest Vermont property-tax bill of $4,000 to $8,000 and income around $30,000 to $40,000 is the kind of household where the credit provides the most meaningful relief.
The exact formula is spelled out in the Schedule HI-144 instructions published by the Vermont Department of Taxes. The calculation runs through your return, not a separate application form, so getting the Schedule HI-144 instructions before you file is essential.
Forms HS-122 and HI-144
Two forms drive Vermont senior property tax relief for homeowners:
Form HS-122 (Homestead Declaration and Property Tax Credit Claim). This is the homestead declaration form Vermont homeowners file each year to maintain homestead status and to claim the Property Tax Credit. It is filed with your Vermont income-tax return. If you do not file HS-122, you lose both the homestead designation and the credit.
Schedule HI-144 (Household Income). This is the schedule you attach to Form HS-122. It calculates your household income under Vermont's definition, which is broader than federal AGI. Every income source must be reported here, including non-taxable sources like Social Security. The schedule then flows into the credit calculation on HS-122.
Both forms are available from the Vermont Department of Taxes and through Vermont-licensed tax preparers and software.
The filing deadline is the same as Vermont's income-tax return deadline. Extensions for the income-tax return extend the credit claim as well, but your homestead designation still needs to be filed on time to protect your homestead status.
The Vermont Renter Credit
Vermont also provides a separate Renter Credit for renters, which is administered through the same Vermont income-tax return. Seniors who rent their primary Vermont residence should ask about the Renter Credit rather than the Property Tax Credit, the two programs are distinct and have different eligibility requirements.
The Renter Credit is also income-tested and available to any qualifying renter, not just seniors. Details and the current income limits are published by the Vermont Department of Taxes.
If you own a Vermont homestead, the Property Tax Credit applies. If you rent, the Renter Credit is the relevant program. A senior who moved from homeownership to renting mid-year should check with the Vermont Department of Taxes to understand which credit applies or whether both can be prorated.
How to Claim Your Credit
Vermont's Property Tax Credit is claimed through the income-tax filing process, not a separate property-tax application.
Step 1. Gather all income documentation for 2025: Social Security award letters, pension and retirement account statements, wage forms, bank interest statements and any other income sources. You need total household income, not just taxable income.
Step 2. Download Form HS-122 and Schedule HI-144 from the Vermont Department of Taxes, or use Vermont-approved tax software that includes them.
Step 3. Complete Schedule HI-144 first to calculate your household income. Every income source goes on this schedule.
Step 4. Transfer the HI-144 result to Form HS-122 and complete the credit calculation.
Step 5. File HS-122 and HI-144 with your Vermont income-tax return by the filing deadline.
Step 6. Confirm the credit appears on your final tax bill or refund.
If you work with a tax preparer, make sure they know you own a Vermont homestead. Not all out-of-state preparers are familiar with the HS-122 requirement and a missed homestead declaration can cost you the credit for the year.
Property taxes are one part of the financial picture for seniors managing care costs. Our guide to how to pay for senior care covers Medicaid, VA benefits and private-pay options alongside home equity.
Questions about Vermont property tax relief? Get personalized help at brevy.com.
Frequently Asked Questions
No. The credit is available to any Vermont homestead owner with income under $115,400. There is no minimum age. Seniors qualify under the same rules as everyone else.
Yes. Vermont's household income definition, calculated on Schedule HI-144, includes Social Security benefits even though they may not be taxable for federal purposes. Include the full Social Security amount on HI-144.
HS-122 is the homestead declaration and credit claim form; HI-144 is the household income schedule that feeds into HS-122. You need both. HI-144 calculates your income; HS-122 calculates your credit.
You lose both your homestead designation and the Property Tax Credit for that year. Vermont homeowners must file HS-122 annually. It does not carry over automatically.
No. The Property Tax Credit is for homestead owners; the Renter Credit is for renters. You claim one based on your housing situation for the year.
Possibly. The income threshold is $115,400, so you qualify. Whether the credit produces a meaningful benefit depends on the ratio of your property-tax bill to your income. Run the Schedule HI-144 calculation to find out, the forms are free.
Next Steps
- Confirm homestead status. Make sure your Vermont property is designated as a homestead and that you file HS-122 every year.
- Gather all 2025 income records. Include Social Security, pension, wages and every other source, not just what appears on your federal return.
- Download Schedule HI-144 from tax.vermont.gov and complete it before your return is due.
- File HS-122 with your Vermont income-tax return by the filing deadline.
If you are thinking about selling your Vermont home or borrowing against it to fund care, our guides on selling or renting your home for care and reverse mortgages for senior care cover those options directly.
Learn More
- Senior Property Tax Relief by State
- How to Pay for Senior Care
- Selling or Renting Your Home for Care
- Reverse Mortgage for Senior Care
Find personalized guidance on Vermont senior property tax relief at brevy.com.
The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.