Vermont
What's New
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blog
June 28, 2017State Rundown 6/28: States Scramble to Finish Budgets Before July Deadlines
This week, several states attempt to wrap up their budget debates before new fiscal years (and holiday vacations) begin in July. Lawmakers reached at least short-term agreement on budgets in…
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blog
June 7, 2017State Rundown 6/7: Kansas Success Story and Other State News
This week, we celebrate a victory in Kansas where lawmakers rolled back Brownback's tax cuts for the richest taxpayers. Governors in West Virginia and Alaska promote compromise tax plans. Texas…
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blog
May 17, 2017Investors and Corporations Would Profit from a Federal Private School Voucher Tax Credit
A new report by the Institute on Taxation and Economic Policy (ITEP) and AASA, the School Superintendents Association, details how tax subsidies that funnel money toward private schools are being…
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report
May 17, 2017Public Loss Private Gain: How School Voucher Tax Shelters Undermine Public Education
One of the most important functions of government is to maintain a high-quality public education system. In many states, however, this objective is being undermined by tax policies that redirect… -
ITEP Work in Action
April 17, 2017Public Assets Institute: Meeting Vermonters’ needs in Fiscal 2018 and beyond
Elected leaders acknowledge investments are needed to clean up Lake Champlain, provide families with child care financial assistance, and make higher education more affordable. But progress has been slow in… -
report
January 19, 2016Testimony before the Vermont Senate Committee on Finance: Tax Policy Issues with Legalized Retail Marijuana
Thank you for the opportunity to testify on the tax policy issues associated with legalized retail marijuana. Our testimony includes five parts: 1. An overview of the marijuana tax rates…
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report
January 13, 2016ITEP Comments to the Vermont Senate Committee on Finance: Tax Expenditure Evaluation
Thank you for the opportunity to comment on Vermont's effort to establish a system for regularly evaluating its tax expenditure programs. Data-driven tax expenditure evaluations are a valuable tool for… -
ITEP Work in Action
April 21, 2015Vermont Legislative Joint Fiscal Office: ITEP and Pew Reports on Vermont’s Income Distribution and Tax System
This report is a slide deck that review’s ITEP’s Who Pays report and its findings on the Vermont state tax system. Read the full report here. -
ITEP Work in Action
March 24, 2015Public Assets Institute: Vermont Has the Capacity to Avoid 2016 Budget Cuts
Vermont’s income tax is among the lowest in the country: 2.7 percent of the state’s total personal income. Eliminating tax breaks and lowering income tax rates would balance the fiscal…
By the Numbers
| Personal Income Tax Features (2015) | |
|---|---|
| Range of Tax Rates | 3.55% - 8.95% |
| Standard Deduction |
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| Personal Exemption | $4,000 |
| Dependent Exemption | $4,000 |
| Earned Income Tax Credit (EITC) | 32% Refundable |
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| Corporate Income Tax Features (2015) | |
|---|---|
| Range of Tax Rates | Personal exemption phases out for high income levels |
| Income Level at Which Top Rate Applies | N/A |
| Combined Reporting | 6.00% - 8.50% |
| Apportionment Factor (Payroll) | $25,000 |
| Apportionment Factor (Property) | Yes |
| Apportionment Factor (Sales) | 25% |
| Sales Tax Features (2015) | |
|---|---|
| State Sales Tax Rate | 6.00% |
| Average Local Sales Tax Rate | 0.1% |
| Average Combined State & Local Sales Tax Rate | 6.1% |
| State Sales Tax Treatment of Groceries | Exempt |
| Local Sales Tax Treatment of Groceries | Exempt |
| Number of Services Taxed | 32 out of 168 surveyed (2007) |
| Streamlined Sales Tax Membership | Full |
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| Property Tax Features (2015) | |
|---|---|
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| Other Tax & Revenue Features (2015) | |
|---|---|
| Gasoline Tax Rate (per gallon) | $0.320 |
| Diesel Tax Rate (per gallon) | $0.31 |
| Cigarette Tax Rate (per pack) | $2.75 |
| Estate or Inheritance Tax | Yes |
| Net Lottery Sales Per Capita | $147 (2010) |
| Tax Policy Oversight | |
|---|---|
| Tax Expenditure Report | Yes |
| Tax Incidence Analysis Capability | Personal income tax only |
Last updated January 13, 2015
RESOURCES
State Tax & Revenue Information
- Vermont Department of Taxes - Publications
- Vermont Department of Taxes - Statistics
- Vermont Department of Finance & Management - Reports & Publications
- Vermont General Assembly - Joint Fiscal Office
- Blue Ribbon Tax Structure Commission