Vermont

Sales Tax

  • Statewide: 6.0%
  • Counties can levy sales tax of no more than 1.0%.
  • Current average sales tax (with local taxes included): 6.092%
  • Common Exceptions at State level:
    • Prescription and Over-the Counter Medicine: Exempt
    • Unprepared Foods: Exempt
    • Prepared Foods: 9%
    • Clothing: Exempt
  • Gasoline Tax: 50.54 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 56.40 cents/gallon (Includes all state, local, and federal taxes)
     

Personal Income Tax

  • Personal Income Tax Rate Range: Four brackets from 3.35% to 8.75% (on income greater than $213,150; married filing jointly $259,000)
  • Standard deduction: Single Filing Status: $6,350. Married Filing Jointly: $12,700. Also receive additional $1,050 for each standard deduction checked on Federal Form 1040. May be entitled to additional exemptions if blind or disabled.
  • Personal Exemption Allowance: Single, married filing jointly, and dependents: $4,350
  • Itemized Deductions Allowed?: Yes, subject to limitations.
  • Retirement Income
    • Social Security: Full exemption if federal Adjusted Gross Income less than $45,000 (less than $60,000 for joint filers); partial between $45,001 to $54,999 ($60,001 to $69,999 for joint filers); no exemption over $55,000.
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
    • Private pensions: Taxable at ordinary income tax rates to the extent included in federal income*
    • Public Pensions: Taxable at ordinary income tax rates to the extent included in federal income*
  • Military Pay
    • Active Duty Pay: Exempt. National Guard and reservist pay is exempt up to $2,000 if income less than $50,000.
    • Military Retirement Pay: $10,000 exemption for residents with gross income of $50,000 or less, or $65,000 or less for those married and filing jointly. Exemption is phased out over the next $10,000 in additional retirement income.
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Taxable at ordinary income tax rates*
Income Tax Comments: *Taxpayers who have a federal AGI greater than $150,000 must pay greater of state income tax or 3% of federal AGI. Seniors and disabled taxpayers may be eligible for up to 24% of the Federal Elderly and Permanently Disabled Tax Credit.

 

Property Tax

  • Local municipalities average 1.90% of the property's assessed value.
  • Calculation of assessed value: 100% of fair market value.
  • Relief programs for:
    • Owner-occupied: Up to $8,000 credit if income is less than $136,900.
    • Disabled Veterans/Surviving Spouse or Child: Reduction of up to $40,000 (minimum of $10,000) of assessed value available if 50% or more service-connected disability. Other circumstances may apply.
  • Personal Property Tax: Yes. Rates and exemptions vary. 

 

Inheritance & Estate Taxes: Estates over $5.0 million are taxed at a flat rate of 16% if the individual died after Dec. 31, 2015. There is no inheritance tax.

 

Department of Revenue website: www.tax.vermont.gov

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