Vermont Sales
Tax Rate

A Vermont sales tax calculator starts with the 6 percent state sales and use tax then adds a 1 percent local option sales tax when the destination municipality imposes it. The general combined rate is therefore 6 percent or 7 percent for ordinary taxable sales depending on the location. Vermont also has broad exemptions for clothing, footwear, food and medicines plus a separate 9 percent meals tax for prepared restaurant meals.

What Is the Vermont Sales Tax Rate in 2026?

Vermont's state sales and use tax rate is 6 percent in 2026.

Some Vermont municipalities impose a 1 percent local option sales tax, which raises the sales-tax total to 7 percent for taxable transactions delivered in those jurisdictions. The local option tax is destination-based and should be calculated as 1 percent of the taxable sales price.

How to Calculate Combined Sales Tax in Vermont

For a standard taxable purchase, multiply the taxable price by 6 percent then add 1 percent if the delivery municipality has a local option sales tax.

A $300 taxable purchase delivered in a municipality without local option sales tax produces $18 of sales tax. The same purchase delivered in a participating municipality produces $21 of tax at a 7 percent combined rate.

Vermont sales tax is destination-based. The key location is where the buyer takes possession or where the seller delivers the taxable property.

Vermont Local Option Tax Is Not the Same as Use Tax

The 1 percent local option sales tax can apply to taxable retail sales, but Vermont does not add a local option use tax when the purchaser self-reports use tax.

This is a useful distinction for online purchases. A Vermont buyer that owes use tax on a taxable item purchased from an unregistered seller generally pays the 6 percent state use tax rather than adding a 1 percent local option use-tax charge.

Businesses collecting sales tax should still use the destination municipality to determine whether local option sales tax applies to a customer transaction.

Clothing, Food and Medicines Are Major Vermont Exemptions

Vermont exempts many common household categories from the 6 percent sales tax, including qualifying clothing, footwear, grocery food and medicines.

• Qualifying clothing and footwear are generally exempt.
• Food and food products for home consumption are generally exempt.
• Medicines can qualify for exemption under Vermont law.
• Qualifying agricultural, manufacturing and industry-specific purchases can be exempt.
• Purchases for resale can be exempt when the buyer provides a valid exemption certificate.
• Certain purchases by qualifying nonprofit organizations can be exempt when documentation requirements are met.

Not every food or beverage is exempt. Bottled or canned soft drinks sold in a grocery or convenience store can be subject to the 6 percent sales tax. Prepared food sold for immediate consumption can instead fall under Vermont's meals tax rules.

Prepared Food Can Be Subject to Vermont Meals Tax Instead

Prepared restaurant meals are generally subject to Vermont's 9 percent meals tax rather than the ordinary 6 percent sales tax.

Restaurants, caterers and similar establishments charge the meals tax on taxable meals. Alcoholic beverages for immediate consumption sold by covered license holders are generally subject to a separate 10 percent alcoholic beverage tax.

A municipality with a local option meals tax can add another 1 percent. A Vermont sales tax calculator should therefore distinguish ordinary merchandise, grocery food, prepared meals and alcoholic beverages before applying a rate.

Vermont Economic Nexus Uses an OR Test

A remote seller can have Vermont economic nexus after reaching either $100,000 in Vermont sales or 200 individual Vermont sales transactions during the preceding 12 months.

Vermont statute uses an OR test, so either threshold can trigger the remote seller collection requirement. Marketplace facilitators and marketplace sellers also have threshold rules tied to Vermont-destination sales.

Physical presence, regular solicitation and other contacts with Vermont can create collection duties independently of the economic threshold.

Vermont Sales Tax Exemption Certificates Require Records

A seller should retain the exemption certificate that supports a resale, nonprofit or other exempt transaction.

Vermont guidance states that exemption certificates must be signed, dated and complete. Sellers generally retain them for at least three years from the date of the last sale covered by the certificate.

Sales Tax Is Separate From Vermont Income Tax and Payroll

Vermont sales tax applies to business transactions and should not be shown as an employee payroll deduction.

For annual personal-tax and wage-withholding questions, use the Vermont income tax guide. After payroll is finalized, the Vermont pay stub generator can organize genuine earnings and deductions without mixing retail sales tax into an employee pay record.

For broader lawful payroll documentation, the paystub maker should be used only with accurate employment and payment information.

Tax Information and Responsible Use

This guide is for general sales-tax planning and business recordkeeping. It does not replace current instructions from the state tax authority or advice for a specific transaction.

Sales and use tax can depend on the product or service, delivery location, exemption status, seller activity and transaction date. Businesses should use current official rate tables and maintain records that support the tax collected or exemption claimed. Online PayStub is intended for lawful payroll, business and recordkeeping purposes and should be used only with genuine payroll information.