Vermont Tax Guide
8.75%top marginal rate
Vermont has one of the highest income tax rates in the nation at 8.75% and some of the highest property taxes. The state also levies an estate tax. Vermont's high tax burden funds extensive public services and has one of the highest per-capita government spending levels.
Vermont Tax at a Glance
Income Tax
8.75%
Top marginal rate
Sales Tax
6%
State-level rate
Property Tax
1.9%
73% above the national average
Estate Tax
Yes
State-level estate/inheritance tax
How Vermont Compares to the National Average
Notable Tax Facts
- Top income tax rate of 8.75% is among the highest nationally
- Property taxes are very high at ~1.90% effective rate
- Has an estate tax with a $5 million exemption
- High taxes fund extensive public services and environmental programs
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Vermont Tax FAQ
What is Vermont's income tax rate?
Vermont has a progressive income tax with rates from 3.35% to 8.75%. The top rate applies to income over $229,500 for single filers.
Does Vermont have an estate tax?
Yes. Vermont has an estate tax with an exemption of $5 million. Rates range from 16% on the first dollar over the exemption.
Are Vermont property taxes high?
Yes. Vermont's effective property tax rate of about 1.90% is among the highest in the nation. Education funding is a primary driver of property tax rates.
Does Vermont tax Social Security?
Vermont provides a Social Security exemption for taxpayers with AGI below certain thresholds, effectively exempting most middle-class retirees.
Compare With Other States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.