Colchester's Tax Rate Fell By Nearly Half. The Tax Bill Followed Different Math.

The property tax line on a Colchester listing may be the least reliable number on the page this fall. For fifteen years, every assessment in town was tied to what properties were worth on April 1, 2011. That ended this year. Colchester finished a town-wide reappraisal with values set as of April 1, 2026, and the town's tax rates were rebuilt around the new numbers. A tax history pulled from 2025 or earlier describes a system that no longer exists.

The posted rates dropped sharply, which makes Colchester look cheaper than its neighbors on paper. For most of the market, it isn't. Here is how the change works, and how to compare towns now that three of them reset their assessments in the same year.

Fifteen years on a 2011 price list

Vermont law requires a town to reappraise when its Common Level of Appraisal, the ratio of assessed values to market values, falls below 85% or rises above 115%. Colchester dropped below 85% in 2022. The town hired Vision Government Solutions, and its data collectors went door to door measuring buildings and recording age and condition.

According to the Colchester Sun, Colchester's CLA before the reappraisal was 61.56%. Assessor Bob Vickery explained that figure this way: "if a property in Colchester sells for $100,000, on average, it is being assessed at $61,560." Under Colchester's FY2027 entry in the state's education tax rate table, the town is now at 100%.

The 61.56% figure blended every property in town. Some homes had gained far more value since 2011 than others, and the old list had no way to show that. The reappraisal fixed it parcel by parcel, so the tax bill shifted parcel by parcel too.

The rate falls so the total stays put

Colchester's charter and state law cap the town's municipal tax collections at the amount voters approved at Town Meeting in March. When the grand list jumped to market value, the rate had to fall to collect the same total. On July 27, 2026, the Selectboard set the FY27 municipal services rate at $0.3734 per $100 of assessed value. The education rate fell for the same reason, under the state's formula.

The town's July 27 newsletter put it plainly: "the Town doesn't collect more taxes due to a town-wide reappraisal." That describes the town total, not any one household. The town's June 15 newsletter set out the rule for individual parcels. If a property's assessment rose by the average or less, its municipal taxes go down or stay about the same apart from the budget increase voters approved. If it rose by more than the average, its municipal taxes go up beyond that.

Before the reappraisal, Vickery expected the average increase to be about 50%, with roughly a third of owners paying more, a third paying the same and a third paying less, as the Colchester Sun reported. That was his forecast, and it shows how the system works. For a buyer, the question about any house is whether its assessment rose faster or slower than the town average.

Two hypothetical houses, same old bill

Here is a simple illustration. Take two Colchester homes that each carried a $300,000 assessment on the old list. Using the homestead education rate and the municipal rate from the table above, each paid about $7,614 for FY2026.

1. House A's assessment rises 50%, to $450,000. At the FY2027 rates, its combined municipal and homestead education tax comes to about $6,766.
2. House B's assessment rises 80%, to $540,000. The same rates produce about $8,120.

These are made-up examples, not actual Colchester parcels. They also leave out local adjustments like the homestead property tax credit. Still, they show the mechanism. Under the old list the two houses were taxed the same. Under the new one, House A's bill falls by about $850 and House B's rises by about $500, leaving roughly $1,350 between them. That means House B's FY26 tax history understates what the next owner will pay. A buyer who reads "$7,600 a year" on both listings would get one right and one wrong, and the listing itself gives no clue which is which.

The new figures for any Colchester address are public on the town's Vision Government Solutions assessment database, which also shows neighboring properties and properties with similar characteristics. The FY27 bills reflect the new list. They were mailed by July 31, the first installment was due August 31, and the second installment was due November 16, 2026. The third is due March 15, 2027. A Colchester seller who has already paid the August and November installments is holding real numbers from the new system, and those are worth asking for.

Comparing towns means multiplying by the CLA

Colchester wasn't alone. Essex Junction and Jericho also completed reappraisals for 2026, and both now sit at a 100% CLA. Shelburne, Williston, South Burlington, Burlington and Milton did not reappraise, and their assessments remain well below market value. Comparing posted rates across these towns therefore compares assessments made in different years.

A rough fix is to multiply each town's homestead education rate by its CLA. That gives an approximate rate per $100 of market value. The table below uses the Vermont Department of Taxes' FY2027 rates, published July 29, 2026.

Shelburne's posted homestead education rate is nearly twice Colchester's. Adjusted for assessment level, Shelburne comes out slightly lower. Williston works the same way. All eight towns land between about $1.01 and $1.18 per $100 of market value, a much narrower spread than the posted rates suggest. Colchester falls in the middle.

There are two limits to this math. First, a CLA is a town-wide average, so the parcel-level variation that the Colchester reappraisal exposed still exists in every town that hasn't reappraised. A given Shelburne or Williston house may be assessed well above or below its town's 54% or 58%. Second, the table covers education taxes only. Municipal rates are set separately by each town and would need the same adjustment.

A smaller shift follows from this. In the five towns that didn't reappraise, a seller's tax history still reflects an aging list, and those towns will eventually go through the same reset Colchester just did. In Colchester, Essex Junction and Jericho, the list now matches recent market value. That makes the FY27 bills in those three towns some of the most current tax figures available in Chittenden County.

A few questions buyers raise

Did Colchester's reappraisal raise everyone's taxes? No. The town collects the municipal amount voters approved, and the rate fell to keep the total there. Parcels whose assessments rose more than the average pay more, and parcels that rose less pay the same or less.

Can an owner still challenge a new assessment? The formal 2026 grievance window closed July 2, 2026, 14 days after Change of Assessment notices went out on June 18. The town's assessment appeal page explains the process.

Where does the homestead property tax credit fit in? The credit is based on household income, so two identical houses can produce different net bills. The Vermont Department of Taxes covers eligibility on its property tax credit page.

Who answers questions about a specific Colchester bill? For bills, the Town Clerk's office at 802-264-5520. For assessments, the Assessor's Office at 802-264-5670.

This post is general information, not tax, legal or financial advice. Tax rules and credits depend on your own situation, so check the details with the town, the state, or a tax professional before you rely on them.

If you're weighing a Colchester home against one in Shelburne, Williston or Essex Junction and want the real FY27 carrying cost for each address, the team at Pursuit Real Estate will gather the new assessment and current tax figures for every property on your list and help you compare them. Book an Appointment and bring the addresses.