What is Vermont's sales tax rate?

Vermont's state sales tax rate is 6%. Some municipalities have enacted a 1% local option tax, bringing the combined rate to 7% in those areas. Prepared food sold in Vermont is taxed at 9% (the 6% sales tax rate plus a 3% meals tax). Vermont is an SST member state.

What is Vermont's economic nexus threshold?

Vermont's economic nexus threshold is $100,000 in gross sales or 200 or more transactions in the current or prior calendar year. Vermont enacted economic nexus legislation following the Wayfair decision.

Sales tax in Vermont — rates, nexus, and filing

Vermont’s 6% base rate is simple, but the 1% local option tax in some municipalities and the separate 9% meals tax add layers for sellers in food service or with complex product mixes.

Key facts

Detail	Vermont
State rate	6%
Local option tax	1% in municipalities that have adopted it
Combined rate (with local)	Up to 7%
Meals tax	9% on prepared food (meals, restaurant sales)
Economic nexus threshold	$100,000 OR 200 transactions
SST member	Yes
Marketplace facilitator law	Yes
Registration	Tax.Vermont.gov
Return due date	25th of the following month

Taxability highlights

Digital goods and SaaS: Taxable in Vermont. Downloaded software, digital content, and SaaS are subject to the 6% rate (plus local option where applicable).

Food and groceries: Unprepared food for home consumption is exempt from the 6% state rate. Prepared food (restaurant meals, hot food) is taxed at the 9% meals rate.

Clothing: Taxable in Vermont, no clothing exemption.

Shipping: Generally taxable when the underlying product is taxable and shipped within Vermont.

Local option tax

Vermont municipalities can enact a 1% local option sales tax in addition to the state 6%. The local option tax applies to the same taxable base as the state tax. Sellers need address-based rate lookup to correctly apply the local option tax, it doesn’t apply statewide.

Economic nexus

Vermont’s threshold is the standard $100,000 or 200 transactions, measured in the prior or current calendar year. Vermont has been enforcing economic nexus for remote sellers since 2018.

Marketplace facilitators

Marketplace facilitators collect and remit Vermont sales tax on third-party sales, so sellers on major platforms don’t collect VT tax separately on marketplace-facilitated orders.