Vermont has a graduated state individual income tax, with rates ranging from 3.35 percent to 8.75 percent. Vermont has a graduated corporate income tax with a top rate of 8.50 percent, a 6.00 percent state sales tax rate, and an average combined state and local sales tax rate of 6.39 percent. Vermont has a 1.51 percent effective property tax rate on owner-occupied housing value. Vermont has an estate tax. Vermont’s gas tax is 31.51 cents per gallon, and its cigarette excise tax is $3.08 per pack of 20 cigarettes.
Vermont raises tax revenue primarily through property taxes (39.2 percent of total state and local tax revenue), other taxes (22.2 percent), and individual income taxes (22.1 percent). Vermont collects $8,462 in state and local tax collections per capita, carries $6,023 in state and local debt per capita, and has a 70 percent funded ratio of public pension plans. Vermont’s tax system ranks 42nd overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Vermont is no exception. Use the tabs below to compare Vermont taxes with other states and to see how Vermont raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: How Does Your State Compare?
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