Vermont Sales Tax

The current state sales tax rate in Vermont (VT) is 6%. The total tax rate might be as high as 7% depending on local governments. In comparison to local-level tax rates in other states, Vermont’s other local-level tax rates are highly complex. Vermont sales taxes are imposed at the city, county, school, and transportation levels, as well as at the SPD (special purpose district) level. Due to the large number of jurisdictions, the Vermont sales tax has multiple local taxing levels that must be reviewed and maintained on a regular basis. Kiplinger’s 2011 list of the 10 Tax-Unfriendly States for Retirees includes Vermont. Prepared foods, restaurant meals, and housing are subject to a 9% state sales tax, while alcoholic beverages sold in restaurants are subject to a 10% tax. Maintaining and tracking all of the subtleties in the state sales tax code is a nightmare for businesses. Vermont sales tax applies to the transfer of taxable tangible goods and services. Since July 1, 2014, sales of prewritten computer software in Vermont have been subject to sales tax. Vermont, as a Streamlined Sales Tax state, invites out-of-state businesses who are not required to collect sales tax to register with the state.

Sales Tax Rates in Vermont by County

In Vermont, when do you have to charge sales tax?

If your business has a sales tax nexus in Vermont, you must charge sales tax. In different states, the term “sales tax nexus” signifies different things. It could be having a physical site (e.g., a brick and mortar business) or having someone working for you in the state. It can also refer to having a ‘affiliate’ or ‘click through’ sales tax nexus in the case of ecommerce.

Check the Vermont government’s sales tax website to see if you should be charging sales tax in your state.

In Vermont, which items are exempt from sales tax?

Prescription medications, for example, are free from sales tax in Vermont. There are also Vermont sales tax exemptions that can be used if the seller or buyer meets specific requirements.

Check the Vermont government’s tax website for a complete list of exemptions.

What is Vermont known for?

Vermont is known for:

• Green mountains
• Farms
• Wineries and breweries
• Ben & Jerry’s
• Maple syrup

Vermont Fun Facts

• Vermont’s name is derived from two French words–vert (“green”) and mont (“mountain”). French explorer Samuel de Champlain first gave the name “Verd Mont” to Vermont’s Green Mountains on his 1647 map.
• Vermont is the largest producer of maple syrup in the United States. 
• Until 1996, Vermont was the only state without a Walmart. 
• Montpelier is the only state capital without a McDonald’s. 
• Vermont does not have any skyscraper. Vermont is the only state that does not have any buildings taller than 124 feet.
• Vermont is one of four states that were once independent nations (Texas, California, and Hawaii are the other three). Vermont was known as Republic of New Connecticut between 1777 and 1791.
• On May 5, 1978, Ben Cohen and Jerry Greenfield opened their first Ben & Jerry’s shop in an old gas station in Burlington, Vermont.
• On July 31, 1790, Samuel Hopkins of Pittsford, Vermont, became the first person in the United States to file and to be granted a patent.
• The socket wrench was invented by J. J. Richardson of Woodstock, Vermont, who received a patent on June 18, 1863.

Tourist Attractions in Vermont

• Ben and Jerry’s Factory Tour: Factory tour of the famous ice cream shop, located in Waterbury, Vermont.
• Green Mountain National Forest: National forest in southern Vermont.
• Hildene: Summer home of Robert Todd Lincoln (son of Abraham Lincoln) and his wife Mary Harlan Lincoln, located in Manchester, Vermont.
• Jay Peak: Ski resort in Jay, Vermont.
• Killington Ski Resort: Ski resort in Killington, Vermont.
• Lake Willoughby: Lake in Westmore, Vermont.
• Mad River Glen: Ski resort in Fayston, Vermont.
• Mount Mansfield: Highest mountain in Vermont. The summit is located within the town of Underhill in Chittenden County.
• Mount Snow: Ski resort in Somerset, Vermont.
• Okemo Mountain Resort: Ski resort in Ludlow, Vermont.
• Quechee Gorge: Gorge in Hartford, Vermont.
• Shelburne Museum: Art museum in Shelburne, Vermont.
• Smugglers’ Notch Resort: Resort in Jeffersonville, Vermont.
• Sugarbush Resort: Ski resort in Warren, Vermont.
• Stowe Mountain Resort: Ski resort in Stowe, Vermont.
• Stratton Mountain: Ski resort in Stratton, Vermont.
• Trapp Family Lodge: Resort in Stowe, Vermont.
• Vermont Teddy Bear Company : Gift shop in Shelburne, Vermont.