VT Renters Rebate: Who Qualifies and How to Apply

The Vermont Renters Rebate program provides financial relief to eligible renters by offering a rebate on property taxes paid through rent. This initiative is designed to ease housing costs for low- and moderate-income residents.

Who Qualifies for the Rebate

Eligibility for the Vermont Renters Rebate is determined by income and residency requirements. Applicants must have rented a Vermont home for the entire previous calendar year, ensuring the program supports those contributing to the state’s property tax base. For the 2024 tax year, the household income limit is $47,000, focusing assistance on economically vulnerable residents.

Applicants must also be legal Vermont residents. Those in public housing or receiving rental assistance are excluded, as they already benefit from other housing programs.

Calculating the Rebate Amount

The rebate amount is based on the portion of rent attributed to property taxes, estimated at 21% of total rent for 2024. For example, if a renter pays $10,000 annually, $2,100 is allocated to property taxes. This amount is compared to 2% of the household’s income. If the property tax contribution exceeds this percentage, the excess qualifies for a rebate. For a household earning $30,000, 2% equals $600. With a property tax contribution of $2,100, the rebate would be $1,500.

Key Documentation

Applicants need specific documents to apply for the Vermont Renters Rebate. The Landlord Certificate, detailing rent paid and the property’s tax status, is essential and must be provided by landlords by January 31st each year. Proof of income for all household members, such as W-2s or 1099s, is required to verify eligibility. Proof of residency, like utility bills or a lease agreement, is also needed to confirm continuous Vermont residency.

Filing Process

Filing for the Vermont Renters Rebate requires accuracy and preparation. Applications can be submitted electronically through the Vermont Tax Department’s online portal, which expedites processing and reduces errors. Applicants must create or log in to an account, ensuring their information is up to date. The portal prompts users to provide necessary details and upload documents, including the Landlord Certificate and income proofs. Identity verification may be required.

Receiving the Rebate

After submitting the application, the Vermont Tax Department processes claims. Processing times depend on the filing date and completeness of documentation. Early electronic filers typically receive rebates within six to eight weeks, while paper filers may face longer waits. Rebates are issued via direct deposit or mailed check, depending on the applicant’s preference. Direct deposit is faster, so applicants should confirm their banking details are correct. For mailed checks, monitoring rebate status through the online portal is recommended. If additional information is requested, responding promptly helps avoid delays. Applicants can contact the Taxpayer Services Division for assistance if needed.