Taxes in Vermont
Every state-level tax in Vermont, in one place—income, sales, property, corporate, estate, transfer, and excise taxes. Figures sourced from the IRS, U.S. Census Bureau, and Tax Foundation.
Vermont’s estate tax stands out for how it treats wealth at death: any estate above $5,000,000 is taxed at a flat 16% rate rather than through graduated brackets. That flat structure means the rate doesn’t climb with the size of an estate — every dollar above the $5,000,000 threshold is hit at the same 16%, which can make the tax’s bite more predictable but also more uniform for larger estates. For anyone weighing a move to Vermont or planning an estate, the practical takeaway is that $5,000,000 is the line to watch, and crossing it triggers that 16% rate on the excess.
State income tax
8.75% 4 brackets · graduated.
Sales tax
The combined state + local sales tax rate is 6.43%. State rate 6.00% plus an average 0.43% local.
Estate & inheritance tax
Vermont taxes estates over $5,000,000 at a top rate of 16%.
Real estate transfer tax
Vermont levies a transfer tax of 1.250% — Property transfer tax.
Cigarette Tax
Vermont levies a cigarette tax of $3.08 per pack of 20. Federal excise adds $1.01 per pack.
Gas Tax
Vermont levies a gas tax of 34.88¢ per gallon. Federal excise adds 18.4¢ per gallon. Excludes local taxes and environmental/carbon-related costs.
Beer Tax
Vermont levies a beer tax of $0.265 per gallon. Federal excise adds $0.113–$0.581 per gallon depending on brewery size.
Wine Tax
Vermont levies a wine tax of $0.550 per gallon. Federal excise adds $1.07 per gallon (11% still wine). MS, NH, PA, UT, WY are control states with no published excise rate.
Spirits Tax
Vermont levies a spirits tax of $9.060 per gallon. Federal excise adds $5.40 per gallon (40% ABV). NH and WY are control states with an effective $0.00 rate.
Property tax by county
The state's median county effective property tax rate is 1.66%. Compare counties below for local rates.
Counties in Vermont by property tax rate
| County | Effective rate | Median home value |
|---|---|---|
| Windsor County | 1.84% | $296,400 |
| Rutland County | 1.81% | $229,400 |
| Windham County | 1.81% | $279,600 |
| Caledonia County | 1.76% | $227,900 |
| Essex County | 1.76% | $172,500 |
| Washington County | 1.75% | $315,000 |
| Orange County | 1.67% | $271,300 |
| Orleans County | 1.65% | $223,400 |
| Bennington County | 1.64% | $279,900 |
| Addison County | 1.57% | $361,200 |
| Lamoille County | 1.57% | $304,700 |
| Chittenden County | 1.51% | $439,200 |
| Franklin County | 1.41% | $306,700 |
| Grand Isle County | 1.32% | $394,100 |