Tool | January 2018

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, sin products, property, and more -- across the U.S.


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The Bottom Line
Map of Vermont

Least Tax-Friendly

Vermont’s effective tax rates are lower than those imposed in nearby New York, but it’s a pricey place to live if you’re wealthy — among other policies, Vermont limits deductions for high-incomers. Also, Vermont's property taxes are among the ten highest in the U.S., according to the Tax Foundation. It's one of Kiplinger's top ten least tax-friendly states.

Sales Tax

6% state levy. Municipalities can add 1% to that, but the average combined rate is 6.17%. A wide range of clothing is exempt. Soda, however, is taxable.

Income Tax Range

Low: 3.55% (on up to $37,950 of taxable income for singles and up to $63,350 for joint filers)

High: 8.95% (on taxable income over $416,700 for single filers and over $421,900 for joint filers)Low: 3.55% (on up to $37,950 of taxable income for singles and up to $63,350 for joint filers)

High: 8.95% (on taxable income over $416,700)

Effective tax rate: 3.6%/individual, 5.2%/joint

See’s Retiree Tax Map to learn how Vermont taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: Gasoline: $0.30 per gallon.
Diesel: Diesel: $0.32 per gallon.

Property Taxes

The median property tax on Vermont's median home value of $217,500 is $3,795.

See’s Retiree Tax Map for details on tax breaks for seniors in Vermont.

Vehicle Taxes

Sales tax due on purchases.

Sin Taxes

Cigarettes: $3.08 per pack
Snuff & other smokeless tobacco: $1.87 per ounce
Cigars: Variable by price; as high as $4 per cigar

Beer: $0.27 per gallon (6% alcohol and above, $0.55 per gallon)
Wine: $0.55 per gallon
Liquor: $7.71 per gallon.
Vermont directly controls the distribution and sale of alcohol. Liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation.

Travel Taxes

Hotel: Lodging tax is 9%, paid in lieu of sales tax. Many municipalities add 1%. The cities of Burlington and Rutland have their own lodging taxes.

Rental cars: 9%

Taxes On Wireless Service


Inheritance and Estate Taxes

Estate tax is imposed on estates exceeding $2.75 million. The rate is a flat 16%. Vermont has no inheritance tax.

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