taxes

State taxes: Vermont

Taxes » Income Taxes » State Taxes » Vermont

Vermont has five income brackets, and its tax rates range from 3.55 percent to 8.95 percent. More on Vermont taxes can be found in the tabbed pages below.

Personal income tax

Vermont's income tax rates are assessed over five tax brackets.

For single taxpayers:

  • 3.55 percent on the first $36,250 of taxable income.
  • 6.8 percent on taxable income between $36,251 and $87,850.
  • 7.8 percent on taxable income between $87,851 and $183,250.
  • 8.8 percent on taxable income between $183,251 and $398,350.
  • 8.95 percent on taxable income of $398,351 and above.

For married persons filing joint returns:

  • 3.55 percent on the first $60,550 of taxable income.
  • 6.8 percent on taxable income between $60,551 and $146,400.
  • 7.8 percent on taxable income between $146,401 and $223,050.
  • 8.8 percent on taxable income between $223,051 and $398,350.
  • 8.95 percent on taxable income of $398,351 and above.

Vermont's tax returns are due April 15 or the next business day if that date falls on a weekend or holiday.

Sales taxes

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.

Several Vermont jurisdictions also impose local option sales taxes on general purchases, meals and rooms.

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.

Personal and real property taxes

Property taxes are imposed at the municipal level for the support of education and municipal services.

Vermont taxpayers no longer have to file an annual Homestead Declaration, Form HS-131. Once the form is filed, it remains on record until the home is sold or there is a change in the use of the homestead.

A property tax adjustment filing, Form HS-145, assists Vermont residents to pay their property taxes. This form must be filed every year. Eligibility requirements include proof of homestead ownership, use of the property as a principal residence and residency for the full tax year. You also must meet household income criteria. A downloadable property tax adjustment calculator (Excel format) can help you determine your property tax liability.

Additional property tax forms can be found on the agency's website.

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 several economic tax incentives.

Vermont taxpayers who file homestead declarations may designate all or part of a state income tax refund to pay their property tax bill. The state will include an additional 1 percent to the refund credited to your property taxes.

Vermont taxpayers can go online to check the status of state refunds.

For more information, contact the Vermont Department of Taxes, Taxpayer Services, at (802) 828-2551 or visit its website.

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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