State guide · VT
Vermont sales tax and property tax
A short list of what gets taxed at the register, a separate tax for the restaurant table, and a property tax built around a statewide school levy.
Facts read on official Vermont pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 6%
- Local sales taxes
- Yes, by address
- Groceries
- Exempt from the state rate
- Clothing
- Exempt
- Median property tax
- $5,026
- Effective property rate
- 1.43% · #6 of 51
Vermont's sales tax is 6%, and it reaches fewer purchases than in most states: all clothing and footwear are exempt whatever their price, food and most beverages are exempt, and so are prescription and over-the-counter drugs. Towns that vote for it add a 1% local option tax, for 7%. Restaurants and lodging sit outside the sales tax altogether and pay a 9% meals and rooms tax instead, 10% on drinks served, with a further 1% where a town has adopted the local option. There is no sales tax holiday, and with clothing and groceries exempt all year there is little for one to cover. Property tax is a different story. Census data for 2024 show a median bill of $5,026 on a $352,800 home, 1.43%, ranked 6 of 51 by rate and 8 by median bill. Much of it is the state education property tax, charged at a homestead rate or a higher nonhomestead rate set for each town every year.
Total to pay
$106.00
Sales tax $6.00 · 6% of the price
| Price before tax | $100.00 |
| State tax · 6% | $6.00 |
| Local tax · 0% | $0.00 |
| Total | $106.00 |
Rule applied: general state rate. Exact local rate for an address: Vermont rate lookup. How this is calculated.
Sales tax in Vermont
Vermont exempts by category, and the categories are generous. A $450 winter parka owes no sales tax, and neither does an expensive pair of boots. The exemption stops at the garment itself: jewelry, handbags and sunglasses are taxable accessories, and protective or sports equipment counts as taxable goods, so $700 of skis bought in a local option town carry $49.00. Food follows the same pattern, with soft drinks as the main exception, while aspirin, antacids, cough medicine and menstrual products are exempt along with prescriptions.
The local option is a town decision and applies base by base. A town may adopt the 1% on sales only, on meals and rooms only, on alcoholic beverages, or on several, so two neighboring towns can differ at the register and at the restaurant. The state's map lookup shows which apply at an address; enter 1 in the calculator above if the sales option is in force.
Eating out is taxed under a separate law. An $80 dinner pays $7.20 of meals and rooms tax, or $8.00 in a town with the local option, and drinks are taxed at 10% instead of 9%. Hotel and inn stays fall under the same 9% tax. Businesses that collect any local option tax must file and pay electronically. Goods bought out of state without Vermont tax owe 6% use tax, paid by the buyer.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 6% | yes | 6% sales and use tax on tangible personal property unless exempt by law. Restaurant meals and lodging pay a separate 9% meals and rooms tax (10% on alcoholic beverages served), not sales tax. Towns may add a 1% local option tax. |
| Groceries (food for home) | 0% | no | Food, food products and beverages are exempt (32 V.S.A. 9741(13)), except soft drinks. Prepared meals fall under the 9% meals and rooms tax instead. |
| Clothing | 0% | no | Clothing and footwear are exempt with no price limit (32 V.S.A. 9741(45)); clothing accessories and protective or sports equipment are taxable. |
| Prescription drugs | 0% | no | |
| Restaurant meals and lodging (meals and rooms tax) | 9% | Separate tax on prepared meals and room rentals; 10% with the local option where adopted. | |
| Alcoholic beverages served in bars and restaurants | 10% | Meals and rooms tax rate on alcoholic beverages; 11% with the local option. |
Local sales taxes
Levied by municipalities that vote a 1% Local Option Tax on sales, meals, rooms and/or alcoholic beverages. Local option tax is 1% on each base: sales 6% + 1% = 7%; meals and rooms 9% + 1% = 10%; alcoholic beverages 10% + 1% = 11%. Find the exact combined rate for an address with the official Vermont lookup, then type the local part into the calculator above.
Sales tax holidays in 2026
Vermont has no sales tax holiday; clothing and food are already exempt year-round.
Worth knowing about Vermont sales tax
- All clothing is exempt from Vermont sales tax regardless of price, but clothing accessories (jewelry, handbags, sunglasses) are taxable. source
- Over-the-counter drugs such as aspirin, antacids and cough medicine are exempt, like prescription drugs. source
- Restaurant meals are not subject to sales tax but to the 9% meals and rooms tax, which becomes 10% in towns with a local option tax. source
- Businesses that collect any Local Option Tax must file and pay electronically. source
- Menstrual care products are exempt from sales tax. source
- Soft drinks are the main exception to Vermont's food exemption. source
Property tax in Vermont
A Vermont bill has two parts. The municipal tax is set by the town or city for its own budget. The education tax is a state tax: a homestead rate and a nonhomestead rate are set for every town each year, and the town collects both. The FY2027 rates were published town by town in summer 2026. Values come from listers, elected or hired by each town, who appraise at fair market value, and the town's common level of appraisal adjusts the result.
The Homestead Declaration decides which education rate you pay. Owners who live in the home as their principal dwelling file Form HS-122 every year by the April filing deadline, alongside the income tax return; without it, the home is billed at the nonhomestead rate, and a late filing can bring a penalty of up to 3%. A home rented to a tenant on April 1 can still qualify if it is not rented for more than 182 days in the year.
Relief is tied to income rather than a fixed exemption. The Vermont Property Tax Credit can reduce the education tax by up to $5,600 and the municipal tax by up to $2,400 for homestead owners within the $115,400 household income limit (tax year 2025). A $330,000 house at the Census ratio of 1.43% faces about $4,703 before any credit, which is why filing both the declaration and the credit claim matters. Due dates are set by each town, with bills usually mailed 30 days ahead.
Property tax on a home in Vermont
Typical bill per year
$5,027
| Per month | $419 |
| Median effective rate in Vermont | 1.43% |
| Median bill paid | $5,026 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Vermont |
|---|---|
| Median home value (owner-occupied) | $352,800 |
| Median real estate taxes paid | $5,026 |
| with a mortgage | $5,260 |
| without a mortgage | $4,719 |
| Effective rate (tax ÷ value) | 1.43% |
| Rank by effective rate (1 = highest) | 6 of 51 |
| Rank by median bill | 8 of 51 |
How the taxable value is set
Town listers or assessors appraise real property at fair market value; the assessment then reflects the town's common level of appraisal. For the education tax, property is classified as homestead (owner's principal dwelling) or nonhomestead, with different rates set for each town every year. Who levies the tax: state education property tax (set by the state, collected by towns) plus municipal property tax set by each town or city
Payment calendar: Due dates are set by each town; bills are generally mailed 30 days before the due date.
Other property tax relief
- Vermont Property Tax Credit. For homestead owners: up to $5,600 against the state education property tax and $2,400 against the municipal tax. Household income limit $115,400 for tax year 2025. source
- Disabled Veteran and Surviving Spouse Exemption. State law mandates at least a $10,000 exemption; towns may vote up to $40,000. Apply to the Office of Veterans Affairs by May 1 each year. source
Worth knowing about Vermont property tax
- Vermont property tax pays for schools through a statewide education property tax: FY2027 homestead and nonhomestead rates were set town by town (summary table as of July 29, 2026). source
- Listers, elected or hired by each town, are a role unique to Vermont: they determine the fair market value of property. source
- A homestead leased to a tenant on April 1 can still qualify if it is not rented for more than 182 days in the year. source
- The Property Tax Credit income limit rose from $115,000 (tax year 2024) to $115,400 (tax year 2025). source
- Any veteran exemption voted above $10,000 is paid for by the town, not the state Education Fund. source