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Tips & tools
A tax tip a day plus an array of tax tools, terms and training will help you through filing and beyond. |
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Vermont
Vermont has five income brackets and its tax rates range from 3.6 percent to 9.5 percent. More on Vermont taxes can be found in the tabbed pages below.
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Income |
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Sales |
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Property |
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Estate |
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Other |
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| Personal income tax |
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Vermont's income tax rates are assessed over five tax brackets.
For single taxpayers:
-- 3.6 percent on the first $31,850 of taxable income.
-- 7.2 percent on taxable income between $31,851 and $77,100.
-- 8.5 percent on taxable income between $77,101 and $160,850.
-- 9 percent on taxable income between $160,851 and $349,700.
-- 9.5 percent on taxable income
of $349,701 and above.
For married persons filing joint returns:
-- 3.6 percent on the first $53,150 of taxable income.
-- 7.2 percent on taxable income between $53,151 and $128,500.
-- 8.5 percent on taxable income between $128,501 and $195,850.
-- 9 percent on taxable income between $195,851 and $349,700.
-- 9.5 percent on taxable income of $349,701 and above. |
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Vermont's tax returns are due on April 15 or the next business day if that date falls on a weekend or holiday. |
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| Sales tax |
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Vermont's general sales
tax rate is 6 percent. The tax is imposed on sales of tangible
personal property, amusement charges, fabrication charges, some
public utility charges and some service contracts. |
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Effective
Jan. 1, 2007, tax
law changes mean
that the tax rate
to be applied for
local option purposes
is determined by the
delivery location
of the item purchased,
rather than the sale's
origin. For example,
a seller in Montpelier,
which has no local
option tax, would
be required to collect
the tax on a taxable
item shipped or delivered
to a buyer in Burlington.
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A use tax is imposed on the buyer
at the same rate as the sales tax. The buyer pays the use tax
when the seller fails to collect the sales tax or the items
are purchased from a source where no tax is collected. The use
tax applies to items taxable under the sales tax rule. |
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| Personal and real property taxes |
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Property taxes are imposed
for the support of education and municipal services. Information
on how rates are set can be found here. |
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School property tax rates can be
found here. |
| Form HS-122 is new for the 2007 tax season. It replaces three forms: HS-131, Declaration of Vermont Homestead; HS-138, Education Property Tax Payment Application; and HS-139, Property Taxes Rebate Claim. With the new HS-122, Vermont taxpayers can simultaneously file the Declaration of Vermont Homestead and Property Tax Adjustment claim. |
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You can use this downloadable property tax calculator (Excel format) to determine your property tax liability. |
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Additional property tax forms can be found here. |
| Inheritance and estate taxes |
| Vermont does not collect inheritance
taxes. |
| | Vermont's estate tax is decoupled
from the federal estate tax laws and therefore still imposes
its own estate
tax. |
| Other Vermont tax facts |
| To encourage investment in Vermont businesses, the state offers the Angel Venture Investment Capital Gain Deferral Credit. It allows for deferral of Vermont income tax on the capital gain for an investment in a qualified business. Find out more on this and other tax credits here. |
| Vermont taxpayers may designate all or part of a state income tax refund to pay property taxes. |
| Vermont does not assess tax on intangible
personal property. |
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| For more information, contact the
Vermont Department of Taxes, Taxpayer Services, at (802) 828-2865
and at their Web
site. |
| To download
tax forms on this site, you will need to install a
free copy
of Adobe Acrobat Reader. Click here for instructions. |
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