Vermont Residents Supported New Second Home Tax

A majority of state residents favor a proposed annual tax on vacation properties to boost housing availability.

Updated on Sept. 29, 2026 in Home Organization

Screen-print poster illustration of a wooden cabin in a rolling, tree-lined landscape, evoking Vermont's rural character and property policy. — A recent Vermont Public poll indicates that 57% of residents support a proposed tax on vacation homes to help convert properties into permanent housing. AI Illustration. Upload story photo >

Live Poll

Should states impose a new yearly tax on second homes?

A recent Vermont Public poll found that 57% of state residents support a new yearly tax on second homes. Supporters aim to use the revenue to address housing needs, while the Vermont Department of Taxes has identified 70,000 properties that could potentially be subject to such a levy.

Why it matters

Proponents argue that the tax could generate critical state revenue while incentivizing the conversion of vacation properties into year-round housing. This measure seeks to alleviate regional housing pressures by addressing the inventory of 35,500 units currently deemed suitable for permanent residency.

A Vermont Public poll shows 57% of residents support the tax, while the Vermont Department of Taxes reports 70,000 properties currently identified for potential taxation.

The players

Vermont Public

A public media organization that provides news and research on state issues.

Vermont Housing Finance Agency

A state agency that focuses on housing availability and real estate data analysis.

Vermont Department of Taxes

The state authority responsible for tax administration and property classification.

The details

The Vermont Housing Finance Agency analyzed state census and municipal property tax records to identify vacation homes. Supporters suggest the tax would create a financial framework to increase available year-round inventory. The policy remains a proposal intended to reshape how the state manages its housing stock.

1940s: U.S. Census Bureau began counting vacation homes.
Earlier this year: Vermont Housing Finance Agency completed property analysis.
September 2026: Vermont Public released the poll results.

The Home Front

This proposal updates the long-standing practice of tracking vacation homes, which dates back to the 1940s census, by linking it to modern state revenue policy. It signals a move toward using tax mechanisms to influence housing availability in the local market.

Property owners should track future legislative updates regarding state property tax definitions. Owners of vacation homes in Vermont may want to review their current municipal tax documentation for upcoming classification changes.

The takeaway

The move to tax second homes highlights a growing effort to balance seasonal property ownership with the need for year-round housing. Property owners should monitor the Vermont Department of Taxes for any official policy shifts regarding vacation property classifications.