Vermont Closing Costs for Buyers: How Much You'll Pay
In Vermont, the state transfer tax is 1.25% (about $5,480 on a $438,400 home). An attorney handles the closing here. Figures below come from Vermont statutes, the state's revenue and insurance regulators and filed title rate cards, read on September 11, 2026.
Transfer tax in Vermont
| Jurisdiction | Rate | |
|---|---|---|
| Vermont (state) | Property Transfer Tax (32 V.S.A. | source |
More on Vermont (state)
Property Transfer Tax (32 V.S.A. § 9602) is 1.25% of value generally, but a lower tiered rate applies when the property will be the buyer's principal residence: 0.5% on the first $200,000 of value, then 1.25% plus a 0.22% Clean Water Surcharge (1.47% combined) on the value above $200,000. Non-principal-residence homes fit for year-round habitation that are not long-term rentals are taxed at 3.4% (3.62% with the surcharge) of the full value.
Vermont has no separate county or municipal transfer/recordation tax layered on top of the state Property Transfer Tax; towns collect the tax at recording but it is entirely a state tax administered by the Vermont Department of Taxes.
Who pays: The purchaser/transferee is the party who files and is understood to bear the Property Transfer Tax in Vermont practice (the return, Form PTT-172, is completed and filed in connection with the buyer's acquisition), unlike many other states where the tax defaults to the seller. Source
Worked example: On a $438,400 home purchased as the buyer's principal residence: 0.5% on the first $200,000 = $1,000, plus 1.47% (1.25% tax + 0.22% Clean Water Surcharge) on the remaining $238,400 = about $3,504. Total Property Transfer Tax = about $4,504, paid by the buyer.
Title insurance in Vermont
Vermont is a filed-competitive state: each title insurer files its own rates, so premiums differ by company and it pays to get two quotes. The buyer pays the lender's policy; who pays the owner's policy is a matter of local custom and contract. We could not read a Vermont rate card from an official or underwriter page, so ask your closing agent for the premium on your price before you rely on an estimate.
Do you need a closing attorney in Vermont?
Yes. Vermont is generally recognized as an attorney-closing state in the title insurance industry: real estate closings customarily involve a licensed Vermont attorney to conduct the closing and/or issue the title opinion, distinguishing it from escrow-agent states like Washington.
Other Vermont specifics
- Vermont Land Gains Tax (seller-side, informational). Separate from the buyer-paid Property Transfer Tax, Vermont imposes a Land Gains Tax on the SELLER when land held short-term is sold at a gain (32 V.S.A. Chapter 236); it does not fall on the buyer but affects net proceeds negotiations in short-hold transactions. Source
How much are closing costs in Vermont?
For a buyer, closing costs usually run 2% to 5% of the purchase price. On Vermont's median-priced home (about $438,400), that is roughly $8,768 to $21,920, and it is separate from your down payment. The exact figure depends on your lender, your loan, and local taxes.
What closing costs include
Closing costs are a bundle of one-time fees due at settlement: lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any Vermont transfer tax, plus prepaid property taxes and homeowners insurance.
Why Vermont closing costs vary
The single biggest reason closing costs differ from state to state is transfer taxes, which states and sometimes counties and cities charge on the sale. Title insurance customs and whether an attorney is required at settlement also matter. Vermont is among the highest-cost states as a share of price, largely because of its property transfer tax.
How a rebate offsets Vermont closing costs
Buyer commission rebates are legal in Vermont. Because a rebate can be paid as a credit at closing, it can erase a meaningful share of these costs. On a $438,400 home, a 2% rebate is about $8,768, often enough to cover much of the closing bill.
Frequently asked questions
Who pays closing costs in Vermont?
Transfer tax: The purchaser/transferee is the party who files and is understood to bear the Property Transfer Tax in Vermont practice (the return, Form PTT-172, is completed and filed in connection with the buyer's acquisition), unlike many other states where the tax defaults to the seller. The buyer pays the lender's policy; who pays the owner's policy is a matter of local custom and contract, plus lender fees, appraisal and prepaid taxes and insurance. Sellers often cover part of the buyer's costs through a negotiated concession.
How much is the transfer tax in Vermont?
Property Transfer Tax (32 V.S.A. § 9602) is 1.25% of value generally, but a lower tiered rate applies when the property will be the buyer's principal residence: 0.5% on the first $200,000 of value, then 1.25% plus a 0.22% Clean Water Surcharge (1.47% combined) on the value above $200,000. Non-principal-residence homes fit for year-round habitation that are not long-term rentals are taxed at 3.4% (3.62% with the surcharge) of the full value.. On a $438,400 home that is about $4,504.
Do you need an attorney to close on a house in Vermont?
Yes. Vermont is generally recognized as an attorney-closing state in the title insurance industry: real estate closings customarily involve a licensed Vermont attorney to conduct the closing and/or issue the title opinion, distinguishing it from escrow-agent states like Washington.
How much are closing costs in Vermont?
Buyer closing costs in Vermont typically run 2% to 5% of the purchase price. On Vermont's median-priced home (about $438,400) that is roughly $8,768 to $21,920, on top of your down payment.
What do closing costs include in Vermont?
Lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any Vermont transfer tax, plus prepaid property taxes and homeowners insurance.
Can a buyer rebate offset closing costs in Vermont?
Often yes. In Vermont, buyer commission rebates are legal, and a rebate can be applied as a credit toward your closing costs at the settlement table.
Sources
- Vermont transfer tax statute
- Who pays the transfer tax
- Vermont Land Gains Tax (seller-side, informational)
- Consumer Financial Protection Bureau: buyer closing costs are typically 2% to 5% of the purchase price
Vermont figures last verified against official sources on September 11, 2026.
Vermont title insurance at every purchase price, with a calculator →
Vermont transfer tax at every purchase price, who pays and local surcharges →
Read the full buyer closing-costs guide →
Figures are typical 2026 ranges and vary by lender, loan, and location. This is general information, not financial advice; confirm your numbers with your lender and closing agent.
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