Skip to content

Taxes In Vermont

Vermont Tax Rates, Collections, and Burdens

How does Vermont’s tax code compare? Vermont has a graduated individual income tax, with rates ranging from 3.35 percent to 8.75 percent. Vermont also has a graduated corporate income tax, with rates ranging from 6.00 percent to 8.5 percent. Vermont has a 6.00 percent state sales tax rate, a max local sales tax rate of 1.00 percent, and an average combined state and local sales tax rate of 6.30 percent. Vermont’s tax system ranks 44th overall on our 2023 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and Vermont is no exception. The first step towards understanding Vermont’s tax code is knowing the basics. How does Vermont collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

See Related Articles

Tax Data by State

Get facts about taxes in your state and around the U.S.

Explore Data

State Tax Data

Individual Taxes

Top Individual Income Tax Rate
8.75%See Full Study
State Local Individual Income Tax Collections per Capita
$1910Rank: 11
State and Local Tax Burden
12.3%Rank: 47See Full Study

Business Taxes

Top Corporate Income Tax Rate
8.50%See Full Study
State Business Tax Climate Index Ranking
44See Full Study

Sales Taxes

State Sales Tax Rate
6.00%Rank: 17See Full Study
Average Local Sales Tax Rate
0.30%See Full Study
Combined State and Average Local Sales Tax Rate
6.30%Rank: 35See Full Study
State and Local General Sales Tax Collections per Capita
$697Rank: 45
State Gasoline Tax Rate (cents per gallon)
32.14¢Rank: 24
State Cigarette Tax Rate (dollars per 20-pack)
$3.08Rank: 9

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
1.83%Rank: 4
State and Local Property Tax Collections Per Capita
$2860Rank: 6

All Related Articles

State tax burden map, state and local tax burden, state-local tax burden rankings, 2021 state tax burden rankings, state tax burdens map

State and Local Tax Burdens, Calendar Year 2019

New Yorkers faced the highest burden, with 14.1 percent of income in the state going to state and local taxes. Connecticut (12.8 percent) and Hawaii (12.7 percent) followed.

19 min read
PPP state tax PPP loan forgiveness. State tax treatment of PPP loans. States tax forgiven PPP loans August 23 2021

Which States Are Taxing Forgiven PPP Loans?

Congress chose to exempt forgiven Paycheck Protection Program (PPP) loans from federal income taxation. Many states, however, remain on track to tax them by either treating forgiven loans as taxable income, denying the deduction for expenses paid for using forgiven loans, or both.

7 min read
2021 state income tax rates. 2021 state individual income tax rates. States with no income tax. 2021 top state marginal individual income tax rates

State Individual Income Tax Rates and Brackets, 2021

Individual income taxes are a major source of state government revenue, accounting for 37 percent of state tax collections in fiscal year (FY) 2017. Several states had notable individual income tax changes in 2020: Arizona, Arkansas, Massachusetts, Michigan, Minnesota, North Carolina, Ohio, Tennessee, Virginia, and Wisconsin.

22 min read
2021 sales taxes, 2021 state and local sales tax rates. 2021 state sales tax rates, 2021 sales tax rates. sales tax rates by state, sales taxes by state

State and Local Sales Tax Rates, 2021

While many factors influence business location and investment decisions, sales taxes are something within lawmakers’ control that can have immediate impacts.

12 min read
tax exemption definition TaxEDU 2021 state tax changes. net operating loss policies in the OECD NOL omnibus covid-19 relief deal. phase 4 coronavirus relief, phase 4 business relief, phase 4 relief net operating loss, cost recovery

State Tax Changes Effective January 1, 2021

Twenty-six states and the District of Columbia had notable tax changes take effect on January 1, 2021. Because most states’ legislative sessions were cut short in 2020 due to the COVID-19 pandemic, fewer tax changes were adopted in 2020 than in a typical year.

24 min read