Thomas is buying a single-family home in Montpelier, Vermont for $300,000 as his primary residence. Using the Vermont Property Transfer Tax rate structure, what is the total amount of Property Transfer Tax Thomas will owe at closing?
Correct Answer
A) $2,250
For a Vermont principal residence transfer under 32 V.S.A. § 9602, the property transfer tax is 0.5% on the first $200,000 of value and 1.25% on value above $200,000. For a $300,000 principal residence: $200,000 × 0.005 = $1,000, and $100,000 × 0.0125 = $1,250. The total property transfer tax is $2,250.
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