Investing guides / Vermont

Vermont tax sale investing: buy the deed — but the owner gets a window

How it works in Vermont

In Vermont you buy a redeemable deed: you take the property at the sale, but the former owner can redeem it during the statutory window by paying you the statutory penalty.

Interest / penalty: 12% per year (1% per month or fraction thereof) on the sum for which the land was sold, from the day of sale to redemption (32 V.S.A. § 5260)

Redemption: 1 year from the day of sale (32 V.S.A. § 5260); if not redeemed, the collector executes a tax collector's deed to the purchaser (§ 5261)

When sales happen: Set by each town/city collector as needed, year-round — there is no county or statewide sale date; a sale may be held only after the tax is delinquent for more than 1 year and at least $1,500 is owed (§ 5252)

Where sales run: mostly in-person — public auction in the town where the land lies, noticed in a local newspaper and posted in a public place, municipality-specific, no statewide online platform

Governing law: 32 V.S.A. Chapter 133, Subchapter 2 (esp. §§ 5252, 5258, 5260–5261)

The investor's edge

Your edge is penalty math: model both outcomes — redemption (you earn the penalty) and keeping the property (you earn the equity) — and only bid where both outcomes work.

Vermont is extremely fragmented — 251 towns/cities run their own sales, bidding is on price (highest bid), not on interest, and the deed is withheld during the 1-year redemption period. Excess of the purchase price over taxes, interest and costs is held for the former owner.

Full legal reference: Vermont tax sale laws. Verified 2026-10-30 against the sources on that page. Educational only, not investment advice.