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 6.00 percent to 8.5 percent corporate income tax rate. 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 6.24 percent. Vermont’s tax system ranks 43rd overall on our 2022 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?


Related Articles

Facts & Figures 2022: How Does Your State Compare?

March 29, 2022

Ranking Individual Income Taxes on the 2022 State Business Tax Climate Index

March 15, 2022

Ranking Corporate Income Taxes on the 2022 State Business Tax Climate Index

March 1, 2022

State Individual Income Tax Rates and Brackets for 2022

February 15, 2022

State and Local Sales Tax Rates, 2022

February 3, 2022

State Corporate Income Tax Rates and Brackets for 2022

January 18, 2022

Net Operating Loss Provisions: State Treatment and the Economic Benefits

January 13, 2022

Eight State Tax Reforms for Mobility and Modernization

January 5, 2022

Americans Moved to Low-Tax States in 2021

January 4, 2022

2022 State Business Tax Climate Index

December 16, 2021

Cigarette Taxes and Cigarette Smuggling by State, 2019

December 2, 2021

Where Do People Pay the Most in Property Taxes?

September 1, 2021

Reviewing Benefits of the State and Local Tax Deduction by County in 2018

August 25, 2021

Sales Tax Rates in Major Cities, Midyear 2021

August 18, 2021

Compare Tobacco Tax Data in Your State

July 22, 2021

State Tax Changes Taking Effect July 1, 2021

June 29, 2021

What Are the Chances Your State Withholds Much of Your Lottery Winnings?

June 9, 2021

Biden Administration Changes to GILTI and FDII Will Yield Automatic State Tax Increases

May 25, 2021

Location Matters 2021: The State Tax Costs of Doing Business

May 5, 2021

ARPA’s Tax Cuts Limitation Is a Problem for More States Than You Think

April 5, 2021