Vermont Sales Tax Rate Explained
Vermont's state sales tax is 6%, squarely in the middle of state base rates. The Tax Foundation's midyear 2026 data adds an average local rate of 0.43%, bringing the typical combined rate to 6.43% and ranking Vermont 32nd nationally. Most towns charge just the 6% base.
The local option is what creates the variation. Towns that adopt the 1% local option tax, including Burlington, reach 7% combined, while towns that skip it stay at 6%. It is a small, visible choice each community makes for itself.
What Is Taxed and What Is Exempt in Vermont
Vermont exempts most clothing and footwear entirely, a distinction it shares with only a few states. Groceries are fully exempt as well, so the two biggest household categories escape the tax completely. Prescription drugs are exempt too.
What gets taxed is tangible goods outside those exemptions: electronics, furniture, vehicles, and prepared food. Vermont also applies a 9% rooms and meals tax to restaurant dining and lodging, which is separate from and higher than the 6% sales tax.
Example: A $1,000 Purchase in Burlington
Burlington adopted the 1% local option, so its combined rate is 7%. A $1,000 appliance purchase works out to $1,000 times 0.07, which is $70.00 in tax, for a total of $1,070.00.
Drive to a town without the local option and the same purchase costs $60.00 in tax for a $1,060.00 total. The $10 gap is the entire local option tax, visible and easy to understand.
Local Sales Taxes in Vermont
Vermont's local sales tax is a simple 1% option that towns adopt by vote. Burlington, Montpelier, Rutland, and a number of other communities use it; many smaller towns do not. The Tax Foundation lists the maximum local add-on at 1.00%.
Because the option is binary, Vermont avoids the fractional local rates that complicate shopping in other states. A town is either at 6% or 7%, and residents generally know which one they live in.
Online Shopping and Marketplace Sales in Vermont
Vermont requires remote sellers and marketplace facilitators to collect once they meet economic nexus thresholds, so major online retailers charge Vermont tax at checkout. The rate follows the delivery address, so a Burlington delivery includes the extra 1%.
Clothing ordered online keeps its exemption. A winter coat shipped to Montpelier is tax-free whether it comes from a website or a Church Street store, which makes the exemption genuinely useful in a cold state.
Does Vermont Have a Sales Tax Holiday?
No. With clothing already exempt year-round, Vermont has never seen the need for a sales tax holiday. The categories most holidays target are permanently tax-free here.
The 9% rooms and meals tax has no holiday either. Restaurant meals and hotel stays are taxed at the higher rate every day of the year, which visitors to ski country discover quickly.
Frequently Asked Questions
What is the Vermont sales tax rate?
The state rate is 6%. With the 1% local option in some towns, the average combined rate is 6.43%; Burlington is 7%.
Is clothing taxed in Vermont?
No. Most clothing and footwear are fully exempt from Vermont sales tax.
Are groceries taxed in Vermont?
No. Groceries are fully exempt from the state sales tax.
What is the sales tax in Burlington?
Burlington's combined rate is 7%, from the 6% state tax plus the 1% local option.
Does Vermont have a sales tax holiday?
No. Clothing is already exempt year-round.
What is Vermont's meals tax?
Restaurant meals and lodging are taxed at 9% under the rooms and meals tax, separate from the 6% sales tax.
Related Calculators
Compare all 50 states on the main Sales Tax Calculator, or check New England on our New Hampshire, New York, and Rhode Island pages. For paycheck math, try the Vermont Paycheck Calculator.
Sources: Tax Foundation, State and Local Sales Tax Rates, Midyear 2026. Figures reviewed for 2026. This calculator provides an estimate for planning purposes and is not tax advice, confirm your exact rate with the Vermont Department of Taxes.