Income Tax
Vermont levies a progressive state income tax ranging from 3.35% to 8.75%, with no local income taxes.
Individual income tax collections
1990–2025Census State Government Tax Collections (FRED VTINCTAX).
| Indicator | Vermont | U.S. |
|---|---|---|
| Top marginal income tax rate (%) | 8.75 | 5 |
- •Vermont's top income tax rate of 8.75% is among the highest in the U.S.
- •There are no local income taxes anywhere in Vermont.
- •The state uses a four-bracket progressive income tax system.
Property Tax
Vermont has one of the highest effective property tax rates in the nation at 1.78%, driven partly by the statewide education property tax.
State-level property tax collections
1990–2025Census State Government Tax Collections; excludes local property taxes (FRED VTPROPTAX).
| Indicator | Vermont | U.S. |
|---|---|---|
| Effective property tax rate (%) | 1.78 | 0.9 |
- •Vermont funds public education via a statewide property tax.
- •Vermont's effective property tax rate ranks in the top 5 nationally.
- •Median home values of $395,000 combined with high rates mean substantial tax bills.
Sales Tax
Vermont's state sales tax rate is 6%, with local option taxes of up to 1% bringing the combined rate to about 6.4%.
General sales tax collections
1990–2025Census State Government Tax Collections (FRED VTSALESTAX).
| Indicator | Vermont | U.S. |
|---|---|---|
| Combined average sales tax rate (%) | 6.4 | 7.12 |
- •Groceries and clothing are exempt from Vermont's sales tax.
- •Local option taxes apply in select municipalities like Burlington.
- •Vermont's combined average sales tax is below many neighboring states.
Tax Burden
Vermont has one of the highest overall tax burdens in the country, at approximately 13.6% of income.
State tax collections per resident
1990–2025Census tax collections (VTTOTLTAX) divided by Census resident population (VTPOP).
| Indicator | Vermont | U.S. |
|---|---|---|
| Total tax burden (% of income) | 13.6 | 10.6 |
- •Vermont's total tax burden is one of the five highest in the U.S.
- •High property taxes are the largest contributor to the overall burden.
- •Tax revenue funds Vermont's strong public school system and healthcare coverage.
Tax Revenue
Vermont's total state tax revenue is approximately $4.5 billion, funding education, healthcare, and infrastructure programs.
State tax collections
1990–2025Census Annual Survey of State Government Tax Collections, fiscal years (FRED VTTOTLTAX).
| Indicator | Vermont | U.S. |
|---|---|---|
| Tax revenue per capita ($) | 6940 | 5800 |
- •Vermont's per-pupil education spending is among the top three nationally.
- •The statewide education property tax is a major revenue source.
- •Vermont's small population means high per-capita tax revenue relative to total.