Regular readers of Tax Foundation reports know that we publish estimates of the distributional impact of federal tax changes: that is, we estimate how a tax reform might affect the after-tax incomes of taxpayers at...
The facts on Vermont’s Tax Climate
8.95%Individual Income TaxTop rate
8.5%Corporate Income TaxTop rate
$2,331Property TaxCollections Per Capita
Vermont's Individual Income Tax System
Vermont's individual income tax system consists of five brackets with a top rate of 8.95%. The top rate ranks 6th highest among states levying an individual income tax. Vermont's state and local tax collections per person were $1,057 in 2013, which ranked 21st highest nationally.
Vermont's Corporate Income Tax System
Vermont's corporate income tax system consists of three brackets with a top rate of 8.5%. The top rate ranks 10th highest among states levying a corporate income tax. Vermont's state and local corporate income tax collections per person were $168 in 2013 which ranked 15th highest nationally.
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 0.2%. Vermont's state and local governments collect $571 per person in general sales taxes and $1,029 per person in excise taxes, for a combined figure of $1,599, which ranks 20th highest nationally. Vermont's gasoline tax stands at 30.46 cents per gallon, 19th highest nationally, while its cigarette tax stands at $3.08, 6th highest nationally.
Vermont Property Tax Collections Relatively High
Vermont's state and local governments collected approximately $2,331 per person in property taxes in 2013, which ranks 5th nationally.
Tax Freedom Day Arrives on April 17th in Vermont
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Vermont taxpayers have to work until April 17th (20th earliest nationally) to pay their total tax bill.
Vermont's State and Local Tax Burden Ranks 11th
Vermont's 2016 Business Tax Climate Index Ranks 46th
Vermont ranks 46th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (44th), individual income taxes (44th), sales taxes (15th), unemployment insurance taxes (17th), and taxes on property (48th), including residential and commercial property.
State Business Tax Climate Index (full study)
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