Taxes are a common theme on news shows in the U.S.; you may have even seen the Tax Foundation’s very own Kyle Pomerleau speaking about the presidential candidates’ tax plans. However, Americans rarely see a sitcom or...
The facts on Vermont’s Tax Climate
8.95%Individual Income TaxTop rate
8.5%Corporate Income TaxTop rate
$2202Property TaxCollections Per Capita
Vermont's Individual Income Tax System
Vermont's personal income tax system consists of five brackets and a top rate of 8.95%. That rate ranks 7th highest among states levying an individual income tax. Vermont's state and local income tax collections per person were $956 in 2012 which ranked 23rd highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Vermont's Corporate Income Tax System
Vermont's corporate income tax system consists of three brackets and a top rate of 8.5%. That rate ranks 10th highest among states levying a corporate income tax. Vermont's state and local corporate income tax collections per person were $154 in 2012 which ranked 17th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Vermont Sales and Excise Taxes
Vermont levies a 6% general sales or use tax on consumers, which is above the national median of 5.95%. The average local sales tax rate is an additional 0.14%. Vermont's state and local governments collect $561 per person in general sales taxes and $1013 per person in excise taxes, for a combined figure of $1574, which ranks 18th highest nationally. Vermont's gasoline tax stands at 32¢ (13th highest nationally), while its cigarette tax stands at $2.75 (8th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Vermont Property Tax Collections Relatively High
Vermont's state and local governments collected approximately $2202 per person in property taxes in 2012, which ranks 7th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 19th in Vermont
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Vermont taxpayers worked until April 19th (17th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: New Hampshire, April 19th (ranked 17th latest nationally); New York, May 4th (ranked 3rd latest nationally); and Massachusetts, April 29th (ranked 5th latest nationally).
Vermont's State and Local Tax Burden Above National Average
Vermont's 2011 tax burden of 10.5% ranks 9th highest out of 50 states, and is above the national average of 9.8%. Vermont's taxpayers pay $4351 per capita in state and local taxes.
Vermont's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Vermont's 2015 Business Tax Climate Index Ranks 46
Vermont ranks 46th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: New Hampshire, 7th, New York, 49th, and Massachusetts, 24th.
State Business Tax Climate Index (full study)
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