How taxes work in Vermont
Sales tax. Vermont charges a 6% statewide sales tax, and counties, cities and special districts add their own on top — which is why the average combined rate of about 6.24% is the number that matters at the till. Groceries are generally exempt from the state sales tax; local rules can differ.
Property tax. At an average effective rate of about 1.78%, a $350,000 home in Vermont carries roughly $6,230 a year in property tax before exemptions. Vermont is a high-property-tax state — factor the tax bill into affordability, not just the mortgage payment. Local assessors set actual bills, so verify with the county for any specific property.
Income tax. Progressive, top rate 7.6%. If you are self-employed in Vermont, you still owe federal self-employment tax plus quarterly state estimates where applicable.
Sales tax · average combined
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
How Vermont compares with similar states
The states closest to Vermont on average combined sales tax. Property tax is the average effective rate; income tax shows the structure, not a single rate.
| State | Combined sales tax | Property tax | Income tax |
|---|---|---|---|
| Vermont (this page) | 6.24% | 1.78% | Progressive |
| South Dakota | 6.4% | 1.09% | None |
| Connecticut | 6.35% | 1.63% | Progressive |
| Pennsylvania | 6.34% | 1.49% | Flat |
| Massachusetts | 6.25% | 1.14% | Flat |
| All-state average (51 entries) | 6.61% | 1.04% | — |
What this means for your money in Vermont
Property tax is the heavy line in Vermont. At an average effective rate of 1.78% — rank 3 of 51, against an all-state average of 1.04% — a $400,000 home carries about $7,120 a year, roughly $593.33 a month. Because lenders collect property tax through escrow, it raises the monthly mortgage payment directly; affordability calculations that use only principal and interest understate the cost of owning here.
Read together: Vermont combines an average combined sales tax of 6.24% (rank 36 of 51), an average effective property tax of 1.78% (rank 3 of 51) and progressive income tax brackets. A household comparing states should compare all three against its own pattern — a high earner who rents weighs the income tax most; a homeowner on a fixed income weighs the property tax most.
Major cities in Vermont
Burlington, South Burlington, Rutland, Essex, Barre. Combined sales-tax rates differ between these cities — sometimes by more than a full percentage point inside the same state — because county and city layers stack on the state base. The Vermont sales tax guide breaks down the calculation and links the calculator where you can enter your exact local rate.
Calculators for Vermont residents
- Vermont Sales Tax Guide & Examples — what you actually pay, with worked amounts.
- Sales Tax & VAT Calculator — add or extract tax at any rate, including your exact Vermont local rate.
- Mortgage Calculator — include Vermont property tax in the monthly payment.
- Property Tax Calculator — estimate a specific property's bill.
- Self-Employment Tax Calculator — federal SE tax for Vermont freelancers.