State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families. Go to the Kiplinger Tax Map Vermont Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Not Tax-Friendly Just across the Connecticut River from no-tax New Hampshire, Vermont is a different place altogether, with income tax rates that reach 8.75%. While sales taxes in the Green Mountain are modest, it's an expensive place to own a home (as well as heat it). Income Tax Range Low: 3.35% (on up to $40,350 of taxable income for singles and up to $67,450 for joint filers)High: 8.75% (on taxable income over for $204,000 for singles and up to $248,350 for joint filers) Sales Tax 6% state levy. Municipalities can add 1% to that, but the average combined state and local rate is 6.24%, according to the Tax Foundation.Groceries: ExemptClothing: ExemptMotor Vehicles: Exempt from ordinary sales tax, but taxable under special 6% purchase and use taxPrescription Drugs: Exempt Real Property Taxes In Vermont, the median property tax rate is $1,861 per $100,000 of assessed home value. Motor Fuel Taxes Gasoline: 30.46¢ per gallon. Diesel: 32¢ per gallon. Sin Taxes Cigarettes: $3.08 per packSnuff & other smokeless tobacco: $2.57 per ounceCigars: Variable by price; as high as $4 per cigarOther tobacco products: 92% of wholesale priceVapor products: 92% of wholesale priceBeer: $0.27 per gallonWine: $0.55 per gallonLiquor: $7.72 per gallonLiquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation.Marijuana: Effective March 1, 2022, 14% excise tax, plus general sales tax Annual Car Taxes and Fees No annual vehicle tax or fee is imposed. Estate and Inheritance Taxes Vermont has an estate tax with an exemption of $4.25 million for 2020 (the exemption amount will increase to $5 million for 2021). The tax rate is a flat 16%.