Vermont (VT) Tax Rates — 2026
Income Tax
8.75%
Sales Tax
6.38%
Property Tax
1.86%
Income Tax
Type: Graduated (marginal brackets)
| From | To | Rate |
|---|---|---|
| $0 | $45,400 | 3.35% |
| $45,400 | $110,050 | 6.6% |
| $110,050 | $229,550 | 7.6% |
| $229,550 | and above | 8.75% |
Standard Deduction: Single: $14,600 | Married Filing Jointly: $29,200
Sales Tax
State Rate6%
Avg Local Rate0.38%
Combined Rate6.38%
Groceries: Exempt
-0.19% vs national avg
Property Tax
Effective Rate1.86%
Median Annual Tax$4,919
+0.79% vs national avg (1.07%)
Retirement Income Tax
Social SecurityYES
PensionsFULLY TAXED
401(k) / IRAYES
Estate & Inheritance Tax
Has Estate Tax: YES
Exemption$5,000,000
Top Rate16%
Corporate Tax
Corporate Income Tax Rate: 8.5%
Additional Notes
Vermont taxes Social Security for higher earners. Has a state estate tax. One of the highest overall tax burden states. Offers a Social Security exemption for AGI under certain thresholds.
Compare with another state:
Sources: Vermont Department of Revenue; Tax Foundation, Facts & Figures 2025; IRS Publication 17.