Vermont Sales Tax

Vermont Sales Tax Guide (2026)

6% plus a 1% local option tax where towns adopted it, and a software exemption that Vermont deliberately reversed in July 2024.[1]

5 min read • Reviewed by Tax Advisory Team • Verified • Sources: VT Taxes & 32 V.S.A.
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Quick Facts

Sales Tax at a Glance

State rate
6% [1]
Local option tax
1% where adopted [2]
Combined rate range
6%–7% [2]
SaaS
Taxable since Jul 1, 2024 [3]
Clothing
Exempt, no price cap [4]
Groceries
Exempt [5]
Meals & rooms tax
9%, separate levy [6]
Economic nexus
$100k OR 200 sales [7]
Registration fee
None [8]
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Vermont exempted remotely accessed software, then reversed it

For nearly a decade Vermont expressly exempted prewritten software accessed remotely. Act 183 of 2024 removed that exemption and redefined tangible personal property to include prewritten software however it is paid for, delivered or accessed.[3]

Effective 1 July 2024 Delivery method now irrelevant Download, stream or hosted access all taxable Custom software still untaxed Separate charges for customisation still relieved Use tax owed if the vendor does not collect
Vermont kept its transaction-count test. A micro-subscription vendor with 200 Vermont sign-ups and well under $100,000 of revenue has had a collection duty since that date, because the 200-transaction prong is still in force.[7]
Estimate

Vermont sales tax calculator

Vermont · state rate 6%
The local option tax is always exactly 1% where it applies.
Rate applied–
Estimated sales tax–
Total with tax–

Estimate only. The Meals and Rooms Tax and the short-term rental surcharge are separate levies on their own returns.[6] Talk to CrownGlobe about software taxability.

Rates & Registration

Vermont Sales Tax Rates, Nexus & the separate levies

Vermont rates by tax

State sales & use tax6%
Local option tax, where adopted1%
Meals tax9%
Rooms tax9%
Alcoholic beverages tax10%

A further 3% short-term rental impact surcharge has applied since 1 August 2024 on rentals of fewer than 30 consecutive days let more than 14 days a year.[9]

Who must register

Either trigger applies: economic nexus at $100,000 in sales or at least 200 individual sales transactions into Vermont over the preceding twelve months, or any physical presence. Vermont has not repealed the transaction-count test.[7]

The local option tax follows the buyer: a seller in a 1% town delivering to a town without one charges 6%, while a seller outside a 1% town delivering into one must charge 7%.[2]

Compliance

Sales Tax Registration and Filing

Vermont issues the sales tax licence without charge.

How to register

  • Confirm nexus→
  • Business tax account registration→
  • Licence issued free→
  • Display at each location→
  • File electronically

One business tax account covers multiple Vermont locations, but each location needs its own licence and files its own sales and use tax schedule.[8]

Filing & due dates

FrequencyTax liabilityDue
Monthly$2,500 or more25th of next month
QuarterlyOver $500 but under $2,50025th after quarter
Annual$500 or less25th of January

Late filing costs 5% of the outstanding liability per month up to 25%, with a $50 minimum if more than 60 days late, and late payment carries a further 5% per month subject to the same cap.[10]

Pricing

Sales Tax & Nexus Pricing

Multi Tax Filing – $50 Per State/Month

ServiceWhat’s Included
Multi-state registrationNexus tracking, permit setup, and state agency coordination.
Monthly filingSales tax returns filed in every registered state.
Exemption & audit supportCertificate handling and notice response.
Get Started with Multi-State Filing
Taxability

Taxable vs. exempt

Vermont taxes tangible goods, prewritten software however accessed, specified digital products and enumerated services, with clothing and groceries outside the base.[1]

Generally taxable

  • Tangible retail goods32 V.S.A. 9771(1)
  • Prewritten software, however accessed32 V.S.A. 9701(7)
  • Specified digital products32 V.S.A. 9771(8)
  • Soft drinksOutside the food definition
  • Admissions & telecommunications32 V.S.A. 9771
  • Clothing accessories & sport equipment32 V.S.A. 9741(45) carve-out

Generally exempt

  • Food & food ingredients32 V.S.A. 9741(13)
  • Clothing for general useNo price cap
  • Custom computer softwareWritten to specification
  • Solar energy systems32 V.S.A. 9741(46)
  • Animal pharmaceuticals32 V.S.A. 9741(53)
  • Medical cannabis sales32 V.S.A. 9741(55)
Worth flagging: a seller that makes Vermont sales without collecting must give a transactional notice on every taxable sale and send an annual purchase summary to buyers spending $500 or more, with per-failure penalties. The duty falls precisely on sellers who concluded they need not collect.[11]
Reference

Glossary of key terms

Local option tax
A 1% municipal tax on sales, meals, rooms and alcohol, adopted town by town and excluding motor vehicle sales.
Prewritten computer software
Software not written for one customer; taxable in Vermont however it is paid for, delivered or accessed since July 2024.
Specified digital products
Digital audiovisual works, audio works, books and ringtones transferred electronically, taxable at 6%.
Meals and Rooms Tax
A separate Vermont tax at 9% on meals and rooms and 10% on alcohol, with its own licence and return.
Short-term rental surcharge
A 3% levy since August 2024 on rentals under 30 consecutive days let more than 14 days a year.
Noncollecting vendor
A seller making Vermont sales without collecting, subject to notice and annual reporting duties with per-failure penalties.
FAQ

Sales Tax FAQs

6% at state level. Municipalities that have adopted the local option tax add exactly 1%, so the combined rate is either 6% or 7%, and the number of adopting towns has grown steadily.

Yes, since 1 July 2024. Vermont had specifically exempted remotely accessed prewritten software, and Act 183 of 2024 reversed that by defining tangible personal property to include prewritten software regardless of how it is paid for, delivered or accessed.

No. Clothing suitable for general use is exempt with no price cap. Clothing accessories, protective equipment and sport or recreational equipment are expressly outside the exemption and remain taxable at 6%.

It does not. It is a separate tax with its own licence, return and rates of 9% on meals, 9% on rooms and 10% on alcoholic beverages, so prepared food is taxed there rather than under the 6% sales tax.

$100,000 in sales or at least 200 individual sales transactions into Vermont in the preceding twelve months. Vermont has not repealed the transaction-count test, so a low-value, high-volume seller can be pulled in on transaction count alone.

No. Food and food ingredients sold for consumption off the premises are exempt, as are eligible foods bought with SNAP benefits. Alcoholic beverages, tobacco, cannabis products and soft drinks are outside the definition and taxable.

Verification

Sources & methodology

  1. VT Department of Taxes – Sales & Use Tax
  2. VT Department of Taxes – Local Option Tax
  3. VT Department of Taxes – Prewritten Computer Software
  4. 32 V.S.A. 9741 – Exemptions
  5. 32 V.S.A. 9701 – Definitions
  6. VT Department of Taxes – Meals & Rooms Tax
  7. VT Department of Taxes – Wayfair & Economic Nexus
  8. VT Department of Taxes – Getting Started
  9. 32 V.S.A. 9301 – Short-Term Rental Surcharge
  10. 32 V.S.A. 9775 – Returns & Filing
  11. VT Department of Taxes – Local Option Guidance
  12. 32 V.S.A. 9771 – Imposition of Sales Tax
  13. 32 V.S.A. 9241 – Meals & Rooms Tax Rates
  14. VT Department of Taxes – Marketplace Facilitators
Methodology: Every rate, threshold and effective date is taken from the Vermont Department of Taxes or the Vermont Statutes Annotated directly. Local option adoptions change frequently, so the current list should be confirmed against the Department’s finder rather than a frozen table.
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