Tax Foreclosure in Vermont: What Homeowners Need to Know
A guide from AuctionBlock.org — a mission-driven company dedicated to foreclosure prevention education
Vermont uses a tax lien/tax sale system. Municipalities sell delinquent tax properties at a tax sale, and the town can eventually transfer title.
How It Works
Property taxes in Vermont are collected by the municipal tax collector. Under 32 V.S.A. § 5252 et seq., when taxes become delinquent, the town places a lien on the property. After a statutory waiting period, the town can sell the property at a public tax sale under 32 V.S.A. § 5252.
The tax collector must provide notice to the property owner before the sale, including notice by certified mail.
Redemption Period
Under 32 V.S.A. § 5260, the property owner has a 1-year right of redemption from the date of the tax sale. The owner can redeem by paying all delinquent taxes, interest, costs, and a penalty to the town treasurer.
After 1 year, if unredeemed, the purchaser receives a deed to the property.
Key Programs and Exemptions
Property Tax Credit (Income Sensitivity): Vermont's property tax credit, administered through the income tax system under 32 V.S.A. § 6066, reduces property taxes for homeowners with household income below a certain threshold. The credit is based on the relationship between property taxes and income. Apply by filing Form HS-122 with your Vermont income tax return by April 15.
Veterans Exemption: Under 32 V.S.A. § 3802(11), qualifying veterans with a disability rating from the VA may receive a property tax exemption on their homestead. The exemption amount is set by the municipality. Apply through your town clerk or assessor.
Payment Plans: Many Vermont municipalities will work with property owners on payment arrangements for delinquent taxes. Contact your town tax collector to ask.
Where to Get Help
- Legal Services Vermont: Provides free legal assistance. Call 1-800-889-2047 or visit legalservicesvt.org.
- HUD-Approved Housing Counselors: Call 1-800-569-4287 or visit hud.gov/counseling.
Take Action
Vermont's 1-year redemption period is relatively short. Contact your municipal tax collector immediately if you are behind on taxes.
Visit auctionblock.org/get-help for free resources and referrals.
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Laws and programs change. Verify current rules with your town tax office or a licensed attorney. AuctionBlock.org is a mission-driven company.