Vermont Senior Property Tax Relief: Property Tax Credit HS-122 Guide

Vermont's Property Tax Credit has no minimum age, and a homestead owner with household income under $115,400 can claim up to $5,600 against the education portion of their property-tax bill.1 A second cap of up to $2,400 applies to the municipal portion of the same bill, but only for household income of $47,000 or less.1 It is not labeled a senior program, so for Vermont senior property tax relief age is simply not a hurdle: the Department of Taxes lists no age condition. 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

Vermont Senior Property Tax Relief: Not Age-Specific, But Designed for Fixed Incomes

Vermont's Property Tax Credit is open to homestead owners of any age, not just seniors, but it is not marketed as a senior program.1 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.

If you are a Vermont homeowner with household income at or below $115,400 and you are not claiming this credit, run the numbers; the credit varies with your home's value and your income.1

Who Qualifies for the Property Tax Credit

To claim Vermont's Property Tax Credit, you must meet all of the following:1

1. Own and occupy the property as your homestead as of April 1, with a Homestead Declaration filed for the current year. According to the Vermont Department of Taxes, homeowners file the declaration on Form HS-122.1
2. Have household income at or below $115,400 for 2025.1 The Department of Taxes defines household income broadly, and its Schedule HI-144 instructions count income such as Social Security benefits, pensions, wages, interest, dividends and capital gains. This is not the same as federal adjusted gross income; read the Vermont instructions carefully.
3. Be domiciled in Vermont for the entire taxable year.1
4. Not be claimed as a dependent of another taxpayer.1

The April 1 test has an exception that matters if a parent has moved in with family or into care: a homestead leased to a tenant as of April 1 can still be claimed if it is not leased for more than 182 days in the claim year.1

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. Under 32 V.S.A. section 6066, it starts from the statewide education tax rate applied to the equalized value of your housesite, less an income percentage of your household income, so it varies with both your home's value and your income.1

The credit has two components:

• Education property-tax component: Up to $5,600 of relief against the education portion of your property-tax bill.1
• Municipal component: Up to $2,400 of relief against the municipal portion of your property-tax bill, available only if household income is $47,000 or less.1

Those two caps add up to $8,000, but that combined figure is arithmetic rather than something the Department of Taxes publishes, and it is not a single pot you draw from.1 Each cap applies to its own portion of the bill, so reaching the full $8,000 requires maxing out both, which is possible only at household income of $47,000 or less.

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 and an income in the low-to-mid tens of thousands is the kind of household where the credit provides the most meaningful relief.

Here is how the mechanics work in plain terms. Vermont's formula limits the education-tax portion of your bill to a set percentage of your household income; the amount your actual bill runs above that income-based limit comes back to you as a credit, up to the maximum described above. So a homeowner whose tax bill eats up a large share of a modest income sees a bigger credit than a neighbor with the same bill but a higher income. The exact applicable percentages that drive the calculation are published in the Schedule HI-144 instructions 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:1

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 can lose both the homestead designation and the credit for that year.

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. According to the Vermont Department of Taxes, every income source is 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 homestead declaration and Property Tax Credit claim are due by April 15, the same as Vermont's income-tax return deadline.1 If you file the Homestead Declaration by the extended October 15 due date, you may still file the credit claim as late as March 15 of the following year, but a $150 processing fee comes out of the credit.1

The Vermont Renter Credit

Vermont also provides a separate Renter Credit for renters, which is administered through the same Vermont income-tax return.1 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 available to any qualifying renter, not just seniors. Per the Vermont Department of Taxes, it is income-tested, and the current income limits are published on the department's site.

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.1

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.

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 April 15 deadline (late declarations are accepted through October 15).

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

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.