The Vermont sales tax rate is 6% statewide, and it’s applied to many retail sales of tangible personal property and certain services. The state also levies higher rates for specific categories, and a few municipalities add a local option tax.

Below, we cover how Vermont determines which sales tax rates apply, which municipalities have adopted the local option tax, and how to calculate what you owe on a given transaction.

Highlights

• Vermont’s base sales tax rate is 6%, with higher rates applying to meals, lodging, and telecommunications.

• A select group of municipalities levies an additional local option tax. The combined rate varies depending on where your customer takes delivery.

• Businesses selling into Vermont must collect and remit sales tax once they exceed the economic nexus threshold in Vermont sales, regardless of where they’re based.

What is the Vermont sales tax rate?

Vermont’s statewide sales tax rate is 6%. That’s the base rate on many taxable retail sales of tangible personal property and certain services.

Vermont also levies several specific-use rates:

• Meals and rooms (9%): This applies to prepared food sold at restaurants, bars, and similar establishments, as well as short-term room rentals, including hotels and certain short-term rental platforms.

• Alcohol (10%): This applies to alcohol served at restaurants and bars.

• Universal service charge (2.4%): This applies to retail telecommunication services.

Some specific use taxes, such as the alcohol and meals and rooms tax, are charged in place of the 6% statewide rate. Others, such as the universal service charge, are charged alongside the statewide rate.

How does Vermont’s sales tax rate work for businesses selling in the state?

Vermont follows destination-based sourcing. The rate that applies to a sale is determined by where the buyer receives the goods or service, not where your business is located. If you ship a product to a customer in Burlington, you charge Burlington’s combined rate. If they pick it up at your Montpelier location, you charge Montpelier’s rate.

You’re required to collect and remit Vermont sales tax only if you have nexus in the state. Vermont recognises two types of nexus:

• Physical nexus: You have a physical presence in Vermont, such as a store, warehouse, office, or employees operating there.

• Economic nexus: You exceed $100,000 or 200 or more separate transactions in Vermont sales in the previous or current calendar year.

If you cross either threshold, you’re required to register with the Vermont Department of Taxes, collect sales tax on taxable Vermont sales, and file returns on the schedule the state assigns you (monthly, quarterly, or annually, depending on volume).

Remote sellers who haven’t hit $100,000 in Vermont sales don’t have a collection obligation. But it’s worth tracking that number closely, because the requirement kicks in the moment you cross it, not at the start of the next year.

What are the local sales taxes in Vermont (VT)?

Vermont has a limited local sales tax structure compared to many states. Many Vermont municipalities add nothing on top of the 6% statewide rate for general retail. The exception is the 1% local option tax, which Vermont law permits certain municipalities to adopt. In these municipalities, general merchandise is taxed at 7% (6% state + 1% local). Meals and rooms are taxed at 10% (9% state + 1% local).

2026 Vermont sales tax range

What are Vermont’s sales tax rates by city?

The table below shows the minimum combined sales tax rate for Vermont’s largest cities and towns as of 2026. Cities with a local option tax reflect the 1% addition.

These are the rates for general merchandise. Meals, lodging, and other categories are taxed at higher sector-specific rates.

What are Vermont’s sales tax rates by county?

The local option tax is adopted at the town or city level. The county view is useful for understanding which regions are likely to include local option jurisdictions.

How do you calculate Vermont’s sales tax?

To calculate Vermont’s sales tax, you need to know the taxable amount, the applicable rate, and whether local option tax applies at the buyer’s location.

Follow these steps:

1. Determine taxability: Not everything sold in Vermont is taxable. Unprepared grocery food and many medications are exempt, as is most clothing. If you’re selling a mix of taxable and exempt items, separate them before applying any rate.

2. Identify the correct rate: The sales tax rate for general merchandise is 6% without the local option tax, or 7% in local option municipalities. The rate for meals and rooms is 9% without the local option, or 10% with the local option. The rate for telecommunications is 8.4% without the local option tax and 9.4% with the local option tax.

3. Apply destination sourcing: Use the buyer’s delivery address to determine whether local option tax applies. You can use Stripe’s sales tax calculator to find any address’s precise tax rate.

4. Calculate and collect: Multiply the taxable sale amount by the combined rate and round to the nearest cent.

Stripe Tax automates steps two through four in real time: it applies the correct rate based on the customer’s location, accounts for the product taxability categories you assign, and keeps rate tables current as jurisdictions update them. You don’t have to manually track which Vermont towns have adopted the local option tax.

How does Vermont’s sales tax rate affect what you owe as a business?

Your filing frequency depends on your registered status and sales volume. Vermont assigns it at registration: monthly for businesses whose sales and use tax liability was more than $500 the previous calendar year, and quarterly for businesses whose liability was $500 or less the previous calendar year.

Businesses should be aware of the following special circumstances:

• Exemption certificates: If you sell to businesses claiming exemption, you’re responsible for collecting and keeping valid exemption certificates on file. Without them, you could be liable if Vermont audits the transaction.

• Marketplace facilitators: If you operate a marketplace where third-party sellers transact with Vermont customers and you meet Vermont’s economic nexus threshold, you’re responsible for collecting and remitting tax on behalf of your sellers.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, VAT and GST on both physical and digital goods and services – in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard or using our powerful API.

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details – saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax or get started today.