Vermont Homeschool Funding Options (2026)

Vermont presents an interesting case for homeschool funding. While the state has no ESA or voucher program, Vermont's historic town tuitioning system—where towns without their own schools pay for students to attend elsewhere—creates an unusual educational funding landscape.

For most homeschool families, however, Vermont offers no direct funding. You'll file enrollment notices, provide annual assessments, and cover your own costs. This guide explains what funding options actually exist and how Vermont's requirements work.

What Funding Is Available for Vermont Homeschoolers?

Vermont provides no direct state funding for homeschool families. No ESA program exists, no vouchers are available specifically for homeschoolers, and there are no education tax credits.

Vermont's political environment—a small, progressive state with strong public education support—makes homeschool funding programs unlikely. The state has historically invested in its public school system rather than alternatives.

The one unique element is town tuitioning, discussed below, though it rarely applies to homeschoolers.

Town Tuitioning: A Vermont Peculiarity

Vermont has roughly 90 towns without their own public schools. In these "tuitioning towns," public funds pay for students to attend approved schools elsewhere—public or private.

How it works: - Towns without schools pay tuition for students to attend elsewhere - Historically included both public and private schools - Average tuition paid: approximately $15,000-$18,000 per student

Does it cover homeschool? Generally, no. Town tuitioning pays for enrollment in approved schools, not parent-directed homeschool programs. Some families have explored creative arrangements (like part-time private school enrollment), but homeschooling directly through town tuitioning is not standard.

Recent legal developments: Vermont's town tuitioning program has faced legal challenges regarding religious schools. Court decisions have clarified that religious schools can participate, but this doesn't extend to homeschooling.

If you live in a tuitioning town, research local policies carefully—but don't expect homeschool funding.

Federal Funding Options

Without state programs, Vermont families rely on federal options:

• Coverdell ESA — Save up to $2,000 per year per child. Growth and qualified withdrawals are tax-free. Covers curriculum, tutoring, testing fees, computers, and supplies.^[1]
• 529 Plan — Vermont's 529 plan offers a state income tax credit (not just deduction) for contributions up to $2,500 per beneficiary.
• Vermont 529 Tax Credit — Vermont provides a 10% tax credit on contributions up to $2,500 per beneficiary annually ($250 max credit). This is more valuable than a deduction.

Understanding Vermont's Requirements

Vermont has moderate homeschool requirements:

Enrollment notification: - File enrollment notice with Vermont Department of Education by the time instruction begins - Include basic student information and curriculum overview - Renewal required annually by September 1

Required subjects: Basic communication (reading, writing, literature), mathematics, citizenship (history, government), physical education, health, English, American and other literature, natural sciences, and fine arts.

Annual assessment: Choose one of four options each year: 1. Teacher assessment (licensed teacher reviews progress) 2. Report from approved Vermont independent school 3. Standardized testing 4. Other approved method

What's NOT required: - Specific hours of instruction - Detailed lesson plans - Evaluator certification (just licensed teacher for option 1)

Vermont Homeschool Funding at a Glance

Public School Access

Vermont provides some public school access for homeschoolers:

Sports and activities: Vermont allows homeschool students to participate in public school athletics. Local school board policies may vary, but state law provides the framework for participation.

Part-time enrollment: Vermont permits dual enrollment—homeschool students can take individual public school courses while remaining primarily homeschooled. Useful for specialized subjects or social opportunities.

Special education: If your child qualifies for special education services, Vermont law provides access to certain supports. Contact your local district for specific options.

Community Resources

Vermont's homeschool community is small but well-organized:

- Vermont Home Education Network (VHEN) — Primary statewide organization providing support and advocacy - Regional support groups — Available in Burlington, Montpelier, and other areas - Homeschool co-ops — Shared instruction and activities - Vermont Association of Home Educators — Faith-based support network

Given Vermont's small size, online communities and regional gatherings play important roles in connecting families.

Legislative Outlook

School choice legislation faces significant obstacles in Vermont. The state's progressive political environment, small population, and commitment to public education limit momentum for ESA or voucher programs.

Vermont's existing town tuitioning system provides some school choice without new legislation, but extending this to homeschoolers isn't on the political agenda.

Families should budget based on current federal options rather than anticipating state programs.

The Bottom Line

Vermont won't fund your homeschool directly, though its unique town tuitioning system creates a more complex educational funding landscape than most states. For homeschoolers, however, the practical reality is self-funding.

Federal Coverdell ESAs and Vermont's 529 tax credit provide your primary financial tools. The state's allowance of public school sports participation and dual enrollment offers practical benefits.

Vermont's moderate requirements—annual assessment with multiple options—are manageable. Combined with guaranteed public school access, homeschooling in Vermont is practical even without direct funding.