Vermont State Taxes
Quick Tax Facts
Income Tax: 3.35% – 8.75%
State Sales Tax: 6%
Median Property Tax: $4,859
Overview
Vermont may be small but it is mighty. Not only is it the greenest state in the nation, but also one of the safest. The state is widely known as one of the most liberal states, as well. Although it is beautiful during the spring and summer, winters can be very brutal – just like its taxes. Vermont’s income taxes are fairly steep and the state has some of the highest property tax bills in the country.
Vermont Income Tax
Vermont has a graduated individual income tax that ranges between 3.35% and 8.75%, depending on the taxpayer’s filing status and taxable income.
| Vermont (VT) Individual Income Tax Rates – Single |
|---|
| If VT taxable income is over | But not over | VT base tax is | Plus | Of the amount over |
|---|---|---|---|---|
| $0 | $3,925 | $0 | 0% | |
| $3,925 | $54,675 | $0 | 3.35% | $3,925 |
| $54,675 | $126,775 | $1,700.13 | 6.6% | $54,675 |
| $126,775 | $260,225 | $6,458.73 | 7.60% | $126,775 |
| $260,225 | $16,600.93 | 8.75% | $260,225 |
| Vermont Individual Income Tax Rates – Married Filing Jointly |
|---|
| If VT taxable income is over | But not over | VT base tax is | Plus | Of the amount over |
|---|---|---|---|---|
| $0 | $11,775 | $0 | 0% | |
| $11,775 | $96,475 | $0 | 3.35% | $11,775 |
| $96,475 | $216,525 | $2,837.45 | 6.6% | $96,475 |
| $216,525 | $323,825 | $10,760.75 | 7.60% | $216,525 |
| $323,825 | $18,915.55 | 8.75% | $323,825 |
Who Must File?
Full-year and part-year residents who are required to file a federal income tax return and earned/received more than $100 in Vermont income must file a Vermont income tax return. Non-residents who are required to file a federal tax return and have net income of more than $100, or earned/received more than $1,000 in gross income, must also file a state income tax return.
Vermont Sales Tax
Vermont has a state sales tax of 6%. Local governments may levy an additional 1% sales tax.
Vermont Property Taxes
Vermont, like many of its nearby neighbors, has some pretty hefty property tax rates. The state collects an average of 1.78% of a property’s assessed fair market value.
The average property tax bill in Vermont is around $4,859. Chittenden County has the highest average property tax bill at $6,404. The lowest bill, $2,747, is found in Essex County.
| Highest | $6404 |
|---|---|
| Median | $4859 |
| Lowest | $2747 |
Yearly Cost Per Resident
Vermont Tax Holidays
There are no tax holidays scheduled in the state at this time.
Vermont Tax Relief
An outstanding Vermont income tax balance can become more difficult to resolve as penalties and interest continue to accumulate. If taxes remain unpaid, the Vermont Department of Taxes may pursue collection efforts to recover what you owe. Whether your tax problem stems from missed filings, financial hardship, or unresolved business tax obligations, taking action sooner may help keep the situation from escalating.
If you can’t afford to pay your Vermont tax debt in full, there may be options available to help you address the balance. Depending on your circumstances and eligibility, you may be able to establish a payment plan, pursue an Offer in Compromise, or explore other available tax resolution options. Working toward a solution before collections progress may also help you avoid or address enforcement measures such as tax liens, wage garnishments, and levies.
Understanding Vermont’s collection process and the options available for resolving delinquent taxes can help you make informed decisions about how to proceed. Taking steps to address your outstanding balance can put you on a clearer path toward resolving your Vermont tax debt and bringing your account back into good standing.
Common Vermont State Tax Problems
Back Taxes
If you owe unpaid Vermont taxes, addressing your balance early may help you avoid additional penalties and collection actions.
Unfiled Tax Returns
Filing past-due Vermont tax returns is often the first step toward resolving your state tax issues.
Tax Notices
Notices from the VT Department of Taxes shouldn’t be ignored, as they often require prompt action to prevent further collections.
Liens & Levies
Unresolved tax debt may lead to liens against your property or levies on your assets as the state works to collect what is owed.
Garnishment
Vermont may garnish your wages to collect unpaid taxes, reducing the amount of each paycheck you receive.
Tax Penalties
Unpaid taxes can continue to accrue penalties and interest until your balance is resolved.
How Vermont Collects Tax Debt
If you don’t pay your Vermont taxes within 60 days of receiving a tax bill, your account will be forwarded to collections. At that time, the state may:
- Place a lien on your property
- Post your name to a Delinquent Taxpayer Report
- Take court action
- Garnish your wages
- Levy your bank accounts
- Revoke professional licenses
- Assign your debt to an outside collection agency
Tax Bill sent to taxpayer
Offset state refunds
Collection actions begin
Vermont State Tax Relief Options
Vermont offers several tax relief options, including:
- Payment Plans – If you can’t pay in full, you may qualify for a monthly payment plan.
- Offer in Compromise – Vermont may accept an Offer in Compromise if you are facing economic hardship, or there is a Doubt as to Liability or Collectibility.
If you’re experiencing financial hardship and can’t pay your Vermont income tax bill, contact the Department of Taxes as soon as possible to discuss your options.
When to Seek Tax Relief Help
If you’re experiencing any of the following, it may be time to explore your tax relief options:
You’re Receiving Collection Notices
Ignoring Vermont tax notices can lead to more serious collection actions, so it’s often best to address the issue early.
You Can’t Afford to Pay Your Taxes
If paying your Vermont state tax bill in full isn’t realistic, there may be payment or resolution options available.
Collection Actions Have Started
If you’re facing wage garnishments, bank levies, or tax liens, professional guidance may help you understand your options.
The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.
Vermont Tax Relief FAQs
Vermont Tax Resources
If you need assistance preparing your Vermont state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the Vermont Department of Taxes for additional resources.
- Tax Forms & Instructions
- Where’s My Refund?
- Amend a Return
- Customer Service phone number: 802-828-2865
