# Vermont Sales Tax Guide (2026)

Canonical: https://trykintsugi.com/sales-tax-guides/usa/vermont
Published: June 17, 2026

Vermont's 6% state rate rises to 7% with local option tax, and SaaS is now taxable. Remote sellers trigger nexus at $100,000 or 200 transactions.

- **SaaS:** Taxable
- **Clothing:** Exempt
- **Groceries:** Exempt
- **Digital Goods:** Taxable

- **Effective date::** 
- **Scheduled change::** 

## Key Takeaways

Vermont's state sales tax rate is 6%, with a 1% local option tax in some towns for a combined 7% [1]. You have economic nexus once sales into Vermont exceed $100,000 or 200 separate transactions during any preceding 12-month period [2]. As of July 1, 2024, Vermont taxes prewritten software including SaaS, and it taxes specified digital products, while clothing and food for home consumption are exempt [3][4]. Appeal an assessment within 60 days [6].

## Taxability Snapshot

## Sales Tax Rates

Vermont levies a 6% state sales and use tax. Towns that adopt the 1% local option tax — including Burlington, South Burlington, and Killington — reach a 7% combined rate.

| Component | Rate | Scope |
| --- | --- | --- |
| State | 6.00% | Statewide |
| Local option | 1.00% | Adopting towns |
| Combined | 6.00%–7.00% | Varies by location |

Most of Vermont is 6%; local-option towns like Burlington are 7%. To find the combined rate for a specific address, use our [US sales tax calculator](/us-sales-tax-calculator).

## Registration or Nexus Threshold

Vermont economic nexus is triggered when your sales into the state exceed $100,000 or 200 separate transactions during any preceding 12-month period. Either threshold creates an obligation. Physical presence creates nexus immediately.

## Marketplace Facilitator Law

Vermont's marketplace-facilitator statute (32 V.S.A. § 9713), added in 2019, took effect June 1, 2019 and requires a facilitator to collect and remit Vermont sales tax on retail sales that marketplace sellers make through its marketplace. A facilitator falls within the collection-duty definition once it has facilitated $100,000 in sales or 200 individual transactions to Vermont destinations in the 12-month period preceding the relevant monthly tax period. The facilitator must certify to sellers that it will collect and remit tax on taxable marketplace items, and a seller that accepts that certification in good faith may exclude those facilitated sales from its own vendor collection obligation.[8]

## Filing Frequency & Deadlines

Vermont assigns monthly, quarterly, or annual filing based on tax volume. Returns are due the 25th of the month following the reporting period (February returns are due the 23rd). Weekend and holiday due dates move to the next business day.

#### Exemptions

Vermont exempts groceries, prescription drugs, and clothing. As of July 1, 2024, Vermont taxes prewritten software regardless of how it is delivered or accessed, so SaaS is now taxable.

## Resale & Exemption Certificates

Vermont buyers give the seller Form S-3 (Resale and Exempt Organizations Certificate) to buy for resale or another exemption; the buyer must hold a Vermont sales and use tax account [5]. The seller obtains it at or before the sale, or within 90 days, and keeps it for three years [5].

## Penalties

Late filing or payment carries a penalty of 5% of the tax due per month, up to a 25% maximum, plus interest from the due date.

## Audits & Appeals

You must request an appeal in writing within 60 days of a notice of assessment or the liability becomes final [6]. The Department reviews the appeal before any further appeal to the courts [6].

## Sources

- [1] [Vermont Department of Taxes — Local Option Tax (6% state, 1% local)](https://tax.vermont.gov/business/local-option-tax)

- [2] [Vermont Department of Taxes — Wayfair FAQs (economic nexus)](https://tax.vermont.gov/business-and-corp/sales-and-use-tax/wayfair/faqs)

- [3] [Vermont Department of Taxes — Prewritten Computer Software (SaaS taxable from July 2024, digital)](https://tax.vermont.gov/business-and-corp/sales-and-use-tax/prewritten-computer-software)

- [4] [Vermont Department of Taxes — Exemptions (clothing and food)](https://tax.vermont.gov/business/sales-and-use-tax/exemptions)

- [5] [Vermont Department of Taxes — Form S-3 (Resale Certificate)](https://tax.vermont.gov/content/form-s-3)

- [6] [Vermont Department of Taxes — Appeals (60 days)](https://tax.vermont.gov/help/appeals)

- [7] [Vermont Department of Taxes — Register (myVTax)](https://tax.vermont.gov/business/register)

- [8] [Vermont Department of Taxes — Marketplace](https://tax.vermont.gov/business-and-corp/sales-and-use-tax/marketplace)

Verified July 2026 against Vermont Department of Taxes published guidance.

## Frequently Asked Questions

### What is the Vermont sales tax rate in 2026?

6% state, rising to 7% in towns that adopt the 1% local option tax, such as Burlington.

### What is Vermont's economic nexus threshold?

$100,000 in sales or 200 separate transactions into Vermont over any preceding 12-month period. Either one triggers nexus.

### Is SaaS taxable in Vermont?

Yes. As of July 1, 2024, Vermont taxes prewritten software however delivered or accessed, so SaaS is taxable.

### Are groceries taxed in Vermont?

No. Vermont exempts groceries, prescription drugs, and clothing.

### When are Vermont sales tax returns due?

The 25th of the month following the reporting period (February returns are due the 23rd).

### What is the penalty for late Vermont sales tax?

5% of the tax due per month, up to a 25% maximum, plus interest.

## Related Reading

- [Is There Sales Tax on Clothing in Vermont? A Guide for 2026](/blog/is-there-sales-tax-on-clothing-in-vermont-businesses-guide)

- [What Vermont SaaS Sales Tax Means for Your Business Today](/blog/vermont-saas-sales-tax-guide-for-businesses)

- [What is Exempt from Sales Tax in Vermont? A 2026 Guide for Businesses](/blog/what-is-exempt-from-sales-tax-in-vermont)

## US Sales Tax Calculator