Vermont: Sales Tax Handbook
Vermont Sales Tax Rate
|State Sales Tax||Local Sales Tax Range||Average Local Tax||Average Combined Tax||Max Combined Tax|
|6%||0% - 1%||0.179%||6.179%||7%|
2023 Vermont Sales Tax Handbook
Vermont Table of Contents
- List of Local Sales Tax Rates
- Sales Tax Calculator
- Sales Tax Exemption Certificates
- Sales Tax Info For Businessowners
- Taxable vs. Non-Taxable Purchases
- Sales Tax on Cars & Vehicles
- More Information
Vermont's Sales Tax By The Numbers:
Vermont has a higher-than-average state sales tax rate, but the actual sales tax rates in most Vermont cities are lower than average when local sales taxes from Vermont's 155 local tax jurisdictions are taken into account.
Rankings by Average State + Local Sales Tax:
Ranked 34th highest by combined state + local sales tax
Ranked 44th highest by per capita revenue from state + local sales taxes ($561 per capita)
Rankings by State Sales Tax Only:
Ranked 8th highest by state sales tax rate
Ranked 40th highest by per capita revenue from the statewide sales tax ($554 per capita)
Printable PDF Vermont Sales Tax Datasheet
Vermont has a statewide sales tax rate of 6%, which has been in place since 1969.
Municipal governments in Vermont are also allowed to collect a local-option sales tax that ranges from 0% to 1% across the state, with an average local tax of 0.179% (for a total of 6.179% when combined with the state sales tax). The maximum local tax rate allowed by Vermont law is 1%. You can lookup Vermont city and county sales tax rates here.
This page provides an overview of the sales tax rates and laws in Vermont. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the Vermont Sales Tax Handbook's Table of Contents above.
What is exempt from sales taxes in Vermont?
Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how Vermont taxes five types of commonly-exempted goods:
For more details on what types of goods are specifically exempt from the Vermont sales tax see Vermont sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in Vermont? Taxation of vehicle purchases in particular are discussed in the page about Vermont's sales tax on cars.
Are services subject to sales tax in Vermont?
"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Vermont, specified services are taxable.
About the Vermont Sales Tax
In the state of Vermont, there is a relatively simple sales tax rate, as the state utilizes a flat state tax rate. However, in addition to the flat state tax rate, cities and towns have the ability to collect a base local tax rate as well. These local tax rates would be in added cumulatively with the state rate.
Is the Vermont Sales Tax Destination-Based or Origin-Based?
Vermont is a destination-based sales tax state, which means that sales tax rates are determined by the location of the buyer when the transaction is completed. This means that, for orders placed via the internet/mail by a customer within Vermont from a Vermont vendor, the vendor must collect a sales tax rate applicable at the buyer's address (including any applicable local sales taxes). This can significantly increase the complication of filing your sales tax return, because different sales tax rates must be charged to different buyers based on their location.
Is Vermont a Streamlined Sales Tax State?
Vermont is a member of the Streamlined Sales and Use Tax Agreement, which means that the Vermont Department of Taxes has taken significant steps to simplify Vermont's sales tax rules and administration process.
Contact the Vermont Department of Taxes
The Vermont Sales Tax is administered by the Vermont Department of Taxes. You can learn more by visiting the sales tax information website at tax.vermont.gov.
Phone numbers for the Sales Tax division of the Department of Taxes are as follows:
- Local Phone: (802) 828-2551
Learn More: Our Book Recommendations
If you would like to learn more about how to manage your Vermont sales taxes, we recommend the following books:
Small Business Taxes For Dummies
This introductury book assists both current and aspiring small business owners with important tax planning issues, and covers a wide variety of small business tax topics.Buy on Amazon
A Guide to Sales and Use Tax
This book provides information and insights on how to comply with a multitude of sales and use tax laws and regulations. This is our recommendation if you need an in-depth look into sales taxes.Buy on Amazon
Simplify Vermont sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
Vermont Sales Tax Rates by Zip Code:
Need an updated list of Vermont sales tax rates for your business? Download our Vermont sales tax database!