This blog was last updated on June 30, 2026
Businesses selling taxable goods or services in Vermont must understand the state’s sales and use tax requirements to remain compliant. Whether you’re a Vermont-based retailer or an out-of-state seller with economic nexus, this Vermont sales tax guide explains the current Vermont sales tax rate, what products and services are taxable, nexus requirements, exemptions, registration, filing obligations and frequently asked questions.
What is the sales tax rate in Vermont?
Vermont imposes a statewide sales and use tax rate of 6%. The state allows local cities to levy an additional 1% local option sales tax, bringing the maximum combined sales tax rate to 7% in participating jurisdictions.
What is Taxable in Vermont?
Vermont sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Under Vermont sales tax laws, most sales of tangible personal property are taxable unless a specific exemption applies. Certain services are also taxable when identified by Vermont statute.
Examples of taxable items and services include:
- Tangible personal property when no exemptions are applicable
- Prewritten computer software
- Prewritten Software as a Service (SaaS)
Sales Tax Nexus in Vermont
A seller is liable to collect and remit Vermont sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Vermont: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Vermont.
Vermont: Economic Nexus
Vermont enforces economic nexus for remote sellers. If your business has:
- $100,000 or more in sales, or
- 200 or more transactions in Vermont during the previous or current calendar year;
you may be required to register for a Vermont sales tax permit and collect Vermont sales tax.
Learn more on the Vermont Department of Revenue’s Sales Tax and Wayfair Page.
Vermont Sales Tax Exemptions
Certain sales in Vermont are considered generally exempt from the sales and use tax requirements.
Exempt Products and Services
- Most services (unless Vermont statutes specify otherwise)
- Food and food ingredients for home consumption
- Clothing
- Drugs and durable medical equipment
Entity- or Use-Based Exemptions
Additionally, Vermont exempts sales to certain entities from the sales/use tax, including the following:
- Qualifying non-profit organizations
- Retailers selling for resale
- Schools
- Vermont and federal governments
How to Claim Sales Tax Exemption in Vermont.
To claim an exemption, an entity must provide an exemption certificate with the sale. The Vermont Department of Taxes accepts several different exemption certificate types for qualifying entities. Additional guidance on acceptable exemption formats can be found here.
How to Register for a Vermont Sales Tax License
Businesses that establish physical or economic nexus in Vermont must register with the Vermont Department of Taxes before collecting sales tax. Registration can be completed online through the myVTax portal. Once registered, businesses receive a Vermont sales tax account and are responsible for collecting, reporting and remitting Vermont sales tax.
More information can be found here.
Vermont Filing and Remittance Requirements
Vermont offers multiple methods for filing and remitting sales and use tax:
- E-filing through myVTax.
- Paper filing is permitted for qualifying businesses that have a single physical location.
- Payments are made either monthly or quarterly depending on the amount of tax liability. For businesses with liability exceeding $500, the business should file monthly. If the business pays $500 or less annually, then the business should file quarterly.
Businesses should ensure returns and payments are submitted on time to avoid penalties and interest. Filing frequency is assigned by the Vermont Department of Taxes based on anticipated tax liability.
Frequently Asked Questions
Is Vermont a part of the Streamlined Sales Tax (SST) initiative?
Yes, Vermont is part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize sales tax rules. More information concerning SST may be found here.
Does Vermont have a sales tax holiday?
No, Vermont does not currently offer sales tax holidays.
Are there any special point of sale fees in Vermont?
Yes, examples include bottle deposits and PaintCare fees.
For sourcing sales tax, is Vermont origin or destination based?
Vermont uses destination-based sourcing.
Can I use the Simplified Electronic Return (SER) in Vermont if I’m not in the SST Model 1 program?
Yes. Vermont accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method.
Who must collect sales tax in Vermont?
Businesses with physical presence in Vermont or those meeting the state’s economic nexus threshold are generally required to register for a Vermont sales tax license and collect sales tax on taxable sales.
Managing sales tax compliance across multiple states can become increasingly complex as tax rates, nexus laws and filing requirements evolve. Sovos helps businesses automate sales tax calculation, exemption certificate management, return filing and remittance, making it easier to stay compliant with Vermont sales tax laws and changing business tax requirements. Learn more