Free Vermont Sales Tax Calculator
Vermont Sales Tax Calculator
Found our Free Vermont Sales Tax Calculator useful? Bookmark and share it.
How to Use the Vermont Sales Tax Calculator
Our Vermont Sales Tax Calculator is designed to provide you with a quick and accurate estimate of the sales tax you’ll pay on purchases within the state. Here’s a simple guide on how to use it:
Enter the Purchase Amount
- In the field labeled “Purchase Amount ($):”, enter the total dollar amount of your purchase. Be sure to enter the amount as a number, and you can include cents (e.g., 125.50).
Select a ZIP Code or Tax Region (Optional, but Recommended)
- ZIP Code: For the most precise calculation, select the ZIP code where the purchase is made. Click on the “Select ZIP Code:” dropdown menu, and choose the appropriate ZIP code from the list. This will automatically populate the tax region.
- Tax Region: If you don’t know the specific ZIP code, you can select the tax region directly. Click the “Select Tax Region:” dropdown menu, and choose the appropriate region. This will use a representative tax rate for that region.
- Why is this important? Vermont has local option taxes, meaning the sales tax rate can vary slightly depending on the specific location. Selecting a ZIP code or tax region ensures the most accurate calculation.
- If neither is selected: If you leave both blank, the calculator will alert you to select one of them.
Include Special Rate (Optional)
- If you believe a special tax rate might apply to your purchase (e.g., for certain lodging or meals in specific areas), check the box labeled “Include Special Rate.” This will include any applicable special tax in the calculation. If you’re unsure, it’s generally safe to leave it unchecked.
Click "Calculate Tax"
- Once you’ve entered the purchase amount and selected a ZIP code or tax region (and chosen to include the special rate if necessary), click the “Calculate Tax” button.
Review the Results
- The calculation results will appear in the “Calculation Details” section below the calculator.
- You’ll see a breakdown of:
- The purchase amount.
- The selected ZIP code and tax region.
- The individual tax amounts for state, county, city, and special taxes (if applicable).
- The total sales tax amount.
- The total cost of the purchase (including tax).
- The percentage of each tax will also be displayed.
Sales and Use Tax Exemptions in Vermont
Retail sales of tangible personal property in Vermont are generally subject to sales tax, but there are some exceptions. This section provides an overview of common exemptions, but it’s not exhaustive. For detailed information, refer to Vermont law (32 V.S.A. Chapter 233) and regulations (Reg. § 1.9701).
Types of Exemptions
Vermont sales tax exemptions fall into three main categories:
- Entity-based: Exemptions based on the type of organization making the purchase (e.g., government entities, non-profits).
- Use-based: Exemptions based on how the purchaser will use the item (e.g., items used in manufacturing, agricultural production).
- Product-based: Exemptions based on the type of product, regardless of the buyer or use (e.g., prescription drugs, groceries).
Common Exemptions
Here are some specific examples of exemptions you might encounter:
- Agricultural Machinery and Equipment: Primarily used (75% of the time) in agricultural production for sale.
- Forestry and Wood Products Machinery, Equipment, and Repair Parts: Used in timber harvesting and wood processing.
- Advanced Wood Boilers: High-efficiency wood boilers used as primary heating systems.
- Manufacturing Components: Tangible personal property that becomes part of a manufactured product for sale.
Exemption Certificates
For entity-based, use-based, or resale exemptions, the buyer must provide the seller with an exemption certificate at the time of purchase. Sellers must keep these certificates for at least three years.
Sales and Use Tax in Vermont
This guide provides essential information for businesses to understand and comply with Vermont Sales and Use Tax. If your business sells tangible personal property (TPP) in Vermont, you must collect and remit sales tax to the Vermont Department of Taxes.
Before You Open for Business
Register for a Vermont Business Tax Account: All businesses, including non-profits, must register for a free Vermont Business Tax Account before collecting sales tax.
Apply for a License to Collect: Businesses collecting Vermont Sales and Use Tax must apply for a license, which authorizes you to collect taxes on behalf of the state. This license must be displayed at your place of business.
Multiple Locations: If your business operates in multiple locations in Vermont, each location must obtain its own license and file its own sales and use tax return, even though you’ll have a single Vermont Business Tax Account.
What is Taxable in Vermont?
Tangible personal property sold to a customer in Vermont or delivered to a Vermont address is subject to Vermont Sales and Use Tax. This includes sales of alcoholic beverages, which are also subject to the Alcoholic Beverage Tax.
How to Calculate and File Sales and Use Tax
- Tax Rate: The general Vermont Sales and Use Tax rate is 6%.
- Local Option Tax: Some municipalities have an additional 1% local option tax, bringing the total to 7%.
- Calculating Tax: Multiply the sales amount by the appropriate tax rate (6% or 7%) and round up to the nearest whole cent.
- Filing: Vermont offers various filing methods, including paper returns, electronic filing, and professional tax preparation. Refer to the Vermont Department of Taxes website for forms, tools, and detailed instructions.
Use Tax
Vermont’s 6% use tax applies to taxable purchases when sales tax is not collected, such as purchases from out-of-state vendors not registered with Vermont.
Exemptions
Certain sales are exempt from sales tax, including:
- Resale Exemption: Businesses reselling TPP can purchase items exempt from sales tax if they provide a Form S-3 exemption certificate.
- Industry-Specific Exemptions: Exemptions exist for certain industries, such as agriculture and manufacturing.
Local Option Tax
- 1% Local Option Tax: Some municipalities have a 1% local option tax on sales, meals, alcoholic beverages, and rooms.
- Other Local Taxes: The cities of Burlington, Rutland, and St. Albans administer their own local taxes on meals, entertainment, lodging, or alcoholic beverages. Businesses in these cities should contact the respective city for information.
10 Things You Can Do to Get Your Vermont Tax Refund Faster
Want your Vermont tax refund as quickly as possible? Here are 10 tips to speed up the process:
E-file Your Return: E-filing is the fastest and most accurate way to file. Many Vermonters qualify for Free File. Learn more at tax.vermont.gov.
Print Legibly: If filing by paper, use blue or black ink and print clearly. If forms are illegible, they will be returned, causing delays.
Use Current Year Forms: Use the most recent tax forms, schedules, and instructions from tax.vermont.gov/forms.
Print Forms Correctly: Follow printing instructions carefully. Don’t shrink or enlarge forms. Ensure all forms are from the same source (Vermont tax booklet, website, or software).
Wait for All Tax Documents: Don’t file until you have received all W-2s and 1099s. Attach copies to your return.
Include All Supporting Documents: Make sure to include all necessary forms, schedules, and supporting documents.
Verify Your Social Security Number: Double-check your Social Security Number on your W-2 for accuracy. If incorrect, contact your employer to have it corrected.
Double-Check for Accuracy: Review all entries, especially numbers like calculations, Social Security Numbers, and addresses. Write numbers legibly.
Sign All Forms: Ensure all required forms are signed.
Respond Promptly to Requests: If the Department of Taxes requests additional information or verification, respond as soon as possible. You can verify your return online at myVTax.vermont.gov.
Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.
Trusted By
Trusted by 3.2M+ Employees: 21 Years of Service Across Startups to Fortune 500 Enterprises
Join our ever-growing community of satisfied customers today and experience the unparalleled benefits of TimeTrex.
Strength In Numbers
Join The Companies Already Benefiting From TimeTrex
Time To Clock-In
Start your 30-day free trial!
Experience the Ultimate Workforce Solution and Revolutionize Your Business Today
- Eliminate Errors
- Simple & Easy To Use
- Real-time Reporting
Saving businesses time and money through better workforce management since 2003.
Copyright © 2025 TimeTrex. All Rights Reserved.