Vermont's Current Use Program | Property Tax Guide for Land Owners
Real Estate March 9, 2026
Real Estate March 9, 2026
If you own land in Vermont, or you're thinking about buying some, property taxes are probably on your mind. Vermont isn't exactly known for low tax bills. But there's a program that about one-third of the state's landowners already use to keep their taxes manageable, and it's been around since 1978.
It's called the Current Use Program, and it could save you thousands of dollars every single year.
Here's the thing most people don't realize until they're deep into a land purchase or staring at a tax bill: Vermont taxes your land based on what it could be worth if someone developed it. Not what you're actually doing with it. So that 50 acres of forest behind your house? The town might be taxing it like it's a future subdivision.
The Current Use Program flips that script. And if you qualify, the savings are real.
Vermont's Current Use Program, officially called the Use Value Appraisal (UVA) Program, lets eligible landowners pay property taxes based on what their land is actually being used for rather than its fair market value. If you're farming it, you pay taxes like a farmer. If you're managing it as forest, you pay taxes based on its value as forestland.
The program was created by the Vermont legislature in 1978 with three goals: keep Vermont's agricultural and forest land productive, slow down development pressure, and make property taxes fairer for people who aren't building on their land.
Right now, more than 19,000 parcels are enrolled, covering over 2.5 million acres. That's roughly one-third of all the land in Vermont.
Every year, the Current Use Advisory Board sets "use values" for enrolled land. For the 2026 tax year, the values are:
Agricultural Land: $537 per acre
Forest Land: $208 per acre
Forest Land more than a mile from a Class I, II, or III road: $156 per acre
Compare that to fair market values. In many parts of Vermont, land sells for $2,000 to $5,000 per acre or more. When your tax bill is calculated on $208 per acre instead of $2,500 per acre, the difference adds up fast.
Say you own 100 acres of managed forestland. Without Current Use, your town might assess it at $2,000 per acre, giving you a taxable value of $200,000. At a typical Vermont tax rate, your land tax could be around $4,500.
Enrolled in Current Use at $208 per acre, that same land has a taxable value of $20,800. Your tax drops to roughly $470. That's a savings of about $4,000 per year, or $40,000 over the life of a 10-year forest management plan.
For larger parcels of 400 acres, we've seen landowners go from a $10,000 annual tax bill down to around $2,200. Those savings are often the difference between keeping family land and being forced to sell.
The program is designed for land that's actively used for agriculture, forestry, or conservation.
You need at least 25 contiguous acres in active agricultural use, or a smaller parcel generating at least $2,000 per year from farm crop sales. Land leased to a qualifying farmer also counts. Eligible farm buildings on enrolled land are completely exempt from all property taxes.
You need at least 25 contiguous acres managed according to an approved forest management plan and state standards. The plan must be developed by a licensed consulting forester and approved by your county forester.
Conservation land owned by qualifying 501(c)(3) nonprofits can also enroll. In 2022, Vermont added a reserved forestland category for ecologically sensitive parcels where conservation is prioritized over active timber management, helping promote old-growth forests.
If you're enrolling forestland, you'll need a management plan prepared by a licensed consulting forester. The plan includes a forest type map, tree inventory, management goals, and a 10-year activity schedule. Your county forester reviews and approves it.
Most consulting foresters charge between $3.50 and $15 per acre. For 100 acres, expect to pay $350 to $1,500. When that plan saves you $4,000 a year in taxes, the math works out pretty well.
You'll also need to file a Forest Management Activity Report by February 1 each year.
The enrollment process is straightforward. Hire a forester (for forestland) to prepare your plan and maps. Submit the plan to your county forester for approval. Then complete Form CU-301 and file it with the Division of Property Valuation and Review through myVTax or by paper. The application fee is $100, and the deadline is September 1 for the following tax year.
Once approved, a contingent lien is placed on the enrolled land. That lien is important to understand.
When your land enters Current Use, a contingent lien is placed on it. That lien stays with the land permanently. If the land is ever developed or withdrawn from the program, the Land Use Change Tax kicks in at 10% of the fair market value of the developed portion.
Pull 5 acres out of a 100-acre parcel to build a house, and those 5 acres are worth $50,000? You'd owe $5,000. The remaining 95 acres stay enrolled without penalty.
"Development" includes transferring land where any resulting parcel is less than 25 acres, building non-forestry structures, commercial mining, or cutting timber against your management plan.
If you're buying rural land in Vermont, understanding Current Use is essential.
When you purchase enrolled property, you have 30 days after the transfer to file a new application to keep it enrolled. Miss that window, and the Land Use Change Tax could be triggered. Your lender will also need a lien subordination (Form CU-306, $179 fee) so their mortgage takes priority over the Current Use lien.
If you're new to buying in Vermont, make sure your agent understands how Current Use works in a transaction. It's one of those details that can catch first-time rural buyers off guard.
For sellers, having land in Current Use can be a selling point. It signals well-managed property with built-in tax savings for the next owner.
This program isn't just about saving money. It's one of the most important tools Vermont has for keeping its landscape the way people love it. Without Current Use, the financial pressure to sell land for development would be enormous. The Vermont Natural Resources Council calls it one of the state's most critical tools for maintaining the farm and forest economy.
If you're considering a move to Vermont and buying land, understanding this program is one of the smartest things you can do.
It's a state program that allows eligible agricultural, forest, and conservation land to be taxed based on its productive use value rather than fair market value. It was established in 1978 and is administered by the Vermont Department of Taxes.
Savings depend on parcel size, location, and local tax rate. A typical 100-acre forest parcel might save $3,000 to $4,000 per year. Larger parcels can see savings of $6,000 or more annually.
Agricultural land is valued at $537 per acre, forest land at $208 per acre, and remote forest land at $156 per acre.
If enrolled land is developed or withdrawn, a tax of 10% of the fair market value of the developed portion is assessed. This obligation runs with the land permanently.
For agricultural land, yes, if the parcel generates at least $2,000 annually from farm sales or is leased to a qualifying farmer. For forestland, the minimum is 25 contiguous acres.
The new owner must file a transfer application within 30 days to keep the property enrolled. The contingent lien transfers with the property.
File online through myVTax or by paper using Form CU-301. The deadline is September 1, and the application fee is $100.
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