Tax Credits for Vermonters
If you are a Vermont taxpayer, you may be eligible for tax credits that can reduce your tax bill or increase your refund. A tax credit is a tax incentive that allows qualified taxpayers to reduce their tax liability to the state. Even Vermonters who are not required to file a tax return may be eligible, so consider filing to receive these credits!
For more information about the topics covered below, visit Tax.Vermont.Gov or vtlawhelp.org. If you have questions about the Property Tax Credit or Renter Credit Claim, call (802) 828-2865 or (866) 828-2865.
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Property Tax Credit
Whether you're a new homeowner or have been living in the Green Mountain State for years, understanding the Vermont Homestead Declaration and Property Tax Credit could help save you money.
Homeowners in Vermont are required to file a Homestead Declaration, even if they aren’t obligated to file a tax return. In Vermont, all property is considered nonhomestead, unless it’s declared as a homestead by the property owner.
Filing the Homestead Declaration form is important because it is required by the State of Vermont and because you may be eligible for a state property tax credit based on your household income and other factors.
How to File a Homestead Declaration
Most people submit a Homestead Declaration, along with the Property Tax Credit Claim form, when they file their income tax return. You can file these claims using the state’s online filing service, myVTax.
Visit the website tax.vermont.gov for step-by-step instructions on how to file using the online portal.
You can also file using a paper form. Use Form HS-122 to file a Homestead Declaration and Property Tax Credit Claim.
Vermont Property Tax Credit
The Vermont Property Tax Credit can help homeowners pay their property taxes. You may be eligible for this credit if your property qualifies as a homestead and you meet all of the other eligibility requirements.
You can learn more about eligibility criteria and find guidance for applying on tax.vermont.gov.
Remember, if you’re a Vermont homeowner, you must declare your property as a homestead. Not only is it required by the state, the Homestead Declaration is the first step in applying for the Vermont Property Tax Credit.
Helpful Links
- Vermont’s Homestead Declaration webpage
- Homestead Declaration Fact Sheet
- Guide: How to File a Homestead Declaration or Property Tax Credit Claim
- Form HS-122 (Vermont Homestead Declaration AND Property Tax Credit Claim)
- Property Tax Calculator
- Vermont Property Tax Credit Fact Sheet
Renter Credit
If you pay rent in Vermont and meet eligibility guidelines, you could qualify for the Renter Credit. The Renter Credit is a refundable tax credit available to eligible Vermont residents who rented during the prior calendar year. The program refunds qualifying residents a portion of their rent payments, in accordance with fair market rent guidelines.
You can file a Renter Credit Claim even if you’re not required to file an income tax return. The claim is also available to adults who are not related and who are sharing a rental unit.
ELIGIBILITY
To qualify for the program, you must reside in Vermont for the entire tax year and have rented for a minimum of six months during that period. These six months do not have to be consecutive.
You cannot be claimed as a dependent of another taxpayer.
And you must meet the income eligibility limits based on your family size. Depending on your situation, you may qualify for the full tax credit or a partial tax credit. The income limits are adjusted every year for inflation, so be sure to visit the Renter Credit section of Tax.Vermont.Gov for the latest eligibility criteria.
HOW TO FILE
To file the Renter Credit Claim, you will need to know your School Property Account Number, also known as the SPAN. The SPAN is a unique 11-digit ID number assigned to each property in Vermont.
The state’s tax website has a tool called a SPAN Finder, where you can simply enter your address to locate this information. The SPAN finder is available at Tax.Vermont.Gov/span-finder.
You can file the Renter Credit Claim along with your Vermont income tax return, or file it separately. You can file the claim through your preferred online tax software, directly in myVTax, or by using the paper form, RCC-146.
Step-by-step instructions for filing through myVTax or completing the paper form are available at Tax.Vermont.Gov.
Helpful Links
- Vermont's Renter Credit Claim webpage
- Income Eligibility Limits
- SPAN Finder Tool
- Guide: How to Complete the Renter Credit Claim
- Form RCC-146
- Renter Credit Calculator
Other Tax Credits
Check out a list of other tax credits on Tax.Vermont.Gov. If you have children or other dependents, you may be eligible for the:
• Vermont Child Tax Credit, a refundable tax credit of $1,000 per child under five.
• Vermont Child and Dependent Care Credit
• Vermont Earned Income Tax Credit