Vermont Sales Tax: 2025 Overview

Sales tax in Vermont is a 6% statewide rate in 2025, with additional local taxes possible. As of 2025, Vermont does not participate in the Streamlined Sales Tax initiative (SSUTA). Historically, Vermont has consistently maintained one of the most predictable sales tax structures in the United States.

Vermont Sales Tax Due Date

In Vermont, sales tax due dates depend on your assigned filing frequency, which is based on the amount of sales tax your business collects. Here’s a breakdown:

Key Points

• If the due date falls on a weekend or holiday, the payment is typically due the next business day.

• Late filings or payments may incur penalties and interest, and obtaining a refund may be challenging, so timely submission is critical.

• All sales tax returns must be filed electronically through Vermont’s myVTax portal.

Vermont Sales Tax Rate in 2025

In Vermont, certain municipalities impose a 1% Local Option Sales Tax in addition to the state's 6% sales tax, resulting in a total of 7% in these areas.

Below is a table of municipalities that have adopted this tax, along with their effective dates:

Notes

• Not all municipalities in Vermont impose the Local Option Tax; verify if it applies to your location.

• Note that the City of Burlington and the City of Rutland administer and collect their own local meals, entertainment, lodging, or alcoholic beverage taxes.

• Certain exemptions exist, such as for groceries, prescription medications, and some manufacturing equipment.

• For the most current information, you can use the Vermont Department of Taxes' Local Option Tax Finder to determine if a specific address or town has a Local Option Tax.

For city-based tax rates in Vermont, visit our Vermont City Directory and search for your city.

Vermont Sales Tax Calculator Example

An online retailer based in New York establishes economic nexus in Vermont by exceeding $100,000 in annual sales, requiring them to collect and remit sales tax for purchases made by Vermont residents. The retailer must collect and remit Vermont sales tax for all taxable sales made to Vermont customers.

Key Considerations for Businesses

• Location Accuracy: Verify the customer’s location to apply the correct local option tax rate.

• Exemption Management: Identify and apply exemptions, such as for groceries or prescription medications, and ensure proper use of a resale certificate for qualified purchases.

• Tax Reporting: Track taxable and exempt sales for accurate reporting and timely remittance.

Kintsugi Intelligence automates location-based tax rate application, exemption management, and accurate reporting across all your one-click integrations to ERP, HR, and eCommerce systems like Shopify, BigCommerce, Amazon, Quickbooks, and Rippling.

Is there a Vermont SaaS sales tax?

Yes, Vermont imposes sales tax on certain Software as a Service (SaaS) products. In Vermont, SaaS is generally classified as "tangible personal property" when delivered electronically, and sales tax applies.

Additional Considerations

• SaaS providers may need to collect and remit sales tax if they have nexus in Vermont.

• Businesses purchasing SaaS should review applicable exemptions, like those for manufacturing or educational purposes, which might apply.

For more details on Vermont SaaS sales tax, read Kintsugi's guide: What Vermont SaaS Sales Tax Means for Your Business Today.

Is there sales tax on clothing in Vermont?

Vermont generally does not impose sales tax on clothing, making most clothing purchases tax-exempt. However, there are a few important exceptions and details to keep in mind:

For more details on sales tax on clothing in Vermont, read Kintsugi's guide: Is There Sales Tax on Clothing in Vermont? A Guide for 2025.

FAQs

What is the sales tax rate in Vermont?

The sales tax rate in Vermont is 6%, with some municipalities adding a local option tax of up to 1%. This applies to most retail sales, leases, and taxable services in the state.

How do you calculate Vermont sales tax?

To calculate Vermont sales tax, multiply the item's sale price by the 6% statewide tax rate. If applicable, add up to 1% for local option taxes based on the municipality where the sale occurs.

Sales Tax Nexus in Vermont

Sales tax nexus in Vermont establishes a business's obligation to collect sales tax, triggered by physical presence, economic activity, or relationships with in-state entities.

Notes

• Vermont uses both physical presence and economic presence to determine nexus.

• Businesses with nexus in Vermont must register for a sales tax permit and collect sales tax on taxable sales.

• Marketplace facilitators are responsible for sales tax collection for third-party sales made through their platforms.

FAQs

What is the sales tax nexus in Vermont?

Sales tax nexus in Vermont is established through physical presence, such as offices or warehouses, or economic thresholds, like exceeding $100,000 in sales or 200 transactions annually. Businesses meeting these criteria must collect Vermont sales tax.

Vermont Sales Tax Exemptions in 2025

In 2025, Vermont maintains its 6% state sales tax, with exemptions for groceries, clothing, prescription, and non-prescription drugs.

What is a Vermont state tax-exempt certificate?

A Vermont sales tax exemption certificate, also known as Form S-3, is a document that allows eligible buyers to make tax-exempt purchases in Vermont. It certifies that the buyer qualifies for an exemption under Vermont sales tax law.

• Purpose: Used for transactions exempt from sales tax, such as purchases by government agencies, non-profit organizations, or resale purposes.

• Usage: The buyer provides the certificate to the seller at the time of purchase to avoid paying sales tax.

• Retention: Sellers must keep a copy of the certificate on file to validate tax-exempt transactions in case of an audit.

Valid Reasons for Exemption

What is exempt from sales tax in Vermont?

Nearly 85% of business leaders prioritize cost savings when managing business expenses, making Vermont's sales tax exemptions and use tax considerations critical.

This table outlines key exemptions to help businesses optimize their tax strategies:

For more details on Vermont sales tax exemptions, read Kintsugi's guide: What is Exempt from Sales Tax in Vermont? A 2025 Guide for Businesses.

Vermont Sales Tax Permits, Registration, and Filing in 2025

This section simplifies obtaining permits, filing returns, and meeting payment deadlines effectively for businesses with buyers in Vermont.

How do I get a Vermont sales tax permit?

To obtain a sales tax permit in Vermont, follow these steps:

• Register Online: Visit Vermont’s myVTax portal to start your registration.

• Provide Business Details: Submit information such as your business name, address, type of business entity, and federal EIN or Social Security number.

• Pay the Registration Fee: Vermont does not charge a fee for obtaining a sales tax permit.

• Receive Your Permit: Once approved, you'll receive a Vermont Business Tax Account number, which allows you to collect and remit sales tax.

How do I submit a Vermont sales tax registration?

To register for Vermont sales tax, follow these steps. Vermont also offers customer support for registration through their website or by phone at (802) 828-2551.

Determine if You Need to Register

• Businesses with nexus (physical or economic presence) in Vermont must register.

• Nexus may result from:

• A physical location or employees in Vermont.

• Remote sales exceeding $100,000 in gross revenue or 200 transactions annually into Vermont.

Gather Required Information

• Business name, address, and contact details.

• Federal Employer Identification Number (FEIN) or Social Security Number (SSN) for sole proprietors.

• Legal structure of the business (e.g., sole proprietorship, LLC, corporation).

• Estimated monthly taxable sales in Vermont.

Register Online

• Visit the Vermont Department of Taxes website.

• Navigate to the “Business Taxes” section and select “Register for a Business Tax Account”.

• Complete the online registration form through the myVTax portal.

Submit Registration

• Ensure all information is accurate before submission.

• You’ll receive a confirmation email or letter with your Vermont Business Tax Account number once approved.

Begin Collecting and Remitting Sales Tax

• After registration, you can start collecting sales tax.

• Use the myVTax portal to file returns, remit collected taxes, and manage use tax obligations.

Vermont Sales Tax Filing

This section breaks down Vermont’s sales tax requirements, including filing rules, taxable items, and permits.

What are the main Vermont filing requirements?

Vermont sales tax filing requirements depend on the size and frequency of taxable sales:

• Filing Frequency: Businesses must file monthly, quarterly, or annually based on their total sales tax liability.

• Due Date: Returns are due on the 25th of the month following the reporting period.

• Filing Method: Returns must be filed electronically through Vermont’s myVTax portal.

• Additional Requirements: Businesses must report all taxable and exempt sales and remit payment for collected taxes by the due date to avoid penalties and interest.

What does Vermont sales tax apply to?

Vermont sales tax applies to the following categories, along with specific Vermont food tax considerations. Certain exemptions apply, such as for groceries, prescription medications, and manufacturing equipment.

How to file sales tax in Vermont

To file sales tax in Vermont, follow these steps:

• Log in to myVTax: Access Vermont’s online tax portal myVTax using your credentials.

• Complete the Sales Tax Return: Enter total taxable sales, exempt sales, and any applicable local option taxes.

• Calculate Tax Due: myVTax automatically calculates the sales tax owed based on your entries.

• Submit Payment: Pay electronically via the portal or by other approved methods.

• Meet Deadlines: Returns are due by the 25th of the month following the reporting period (monthly, quarterly, or annually, depending on your assigned frequency).

• Maintain Records: Keep copies of filed returns and payment confirmations for audit purposes.

FAQs

What day is Vermont sales tax due?

Vermont sales tax is due on the 25th day of the month following the taxable sales period. For example, sales made in January must have taxes filed and paid by February 25th.

Does Vermont have a sales tax holiday?

No, Vermont doesn't currently have a sales tax holiday. Unlike some states like Florida, Texas, and Massachusetts, Vermont does not offer a designated period where certain items can be purchased tax-free.

Automate Your Vermont Sales Tax with Kintsugi

Managing Vermont sales tax compliance can be complex, from verifying local tax rates to tracking exemptions and meeting filing deadlines. Kintsugi simplifies this process with powerful automation tools designed for modern businesses.

Let Kintsugi handle the complexities of Vermont sales tax so you can focus on growing your business. Visit our Product Platform and Pricing pages to learn more and get started today!