State taxes: Vermont

Vermont has 5 income brackets, and its tax rates range from 3.55% to 8.95%. More on Vermont taxes can be found in the tabbed pages below.

Personal income tax

Vermont’s income tax rates are assessed over 5 tax brackets.

For single taxpayers:

• 3.55% on the first $37,450 of taxable income.
• 6.8% on taxable income between $37,451 and $90,750.
• 7.8% on taxable income between $90,751 and $189,300.
• 8.8% on taxable income between $189,301 and $411,500.
• 8.95% on taxable income of $411,501 and above.

For married taxpayers filing joint returns:

• 3.55% on the first $62,600 of taxable income.
• 6.8% on taxable income between $62,601 and $151,200.
• 7.8% on taxable income between $151,201 and $230,450.
• 8.8% on taxable income between $230,451 and $411,500.
• 8.95% on taxable income of $411,501 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%. 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.

A Vermont Homestead Declaration and Property Tax Adjustment Claim Form HS-122 must be filed each year by every Vermont resident whose property meets the definition of a homestead (i.e., a principal dwelling and parcel of land surrounding the dwelling, owned by a resident individual as of April 1 and occupied by the owner). Beginning in 2015, if your homestead is rented on April 1, it may still be declared as your homestead if you occupy it for at least 183 days out of the calendar year. In order to receive a property tax adjustment, Vermont homeowners must file a Homestead Declaration, a Property Tax Adjustment Claim and a Household Income Schedule.

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. When a decedent’s property value exceeds $2.75 million, the excess is taxed on a sliding scale ;of estate tax rates ranging from 0.8% to 16%.

Other Vermont tax facts

Act 174, enacted in June 2014, grants Vermont’s commissioner of taxes the ability to compile and publish lists of delinquent taxpayers. Lists of the 100 individual taxpayers and 100 business taxpayers with the highest amount of unpaid tax debt can be found at the Department of Taxes website.

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.