Vermont has a 6% state-wide sales tax, and some municipalities impose an additional 1% local option tax. If you sell taxable goods or services in Vermont, you may be required to register, collect, and remit sales tax.
Whether you operate a business in Vermont, sell through your own ecommerce website, or are an out-of-state seller that exceeds Vermont’s economic nexus threshold, understanding your obligations is essential to staying compliant.
Vermont Sales Tax at a Glance (2026)
| Topic | Key Information |
| State sales tax | 6% |
| Local option sales tax | Additional 1% in participating municipalities |
| Economic nexus | $100,000 in sales OR 200 transactions |
| Sales tax registration | Required when applicable |
| Filing frequency | Monthly, quarterly, or annually |
| Registration and filing | myVTax |
When Do You Have Sales Tax Nexus in Vermont?
You generally have sales tax nexus if your business:
- Has a storefront, office, warehouse, employees, or inventory in Vermont.
- Makes at least $100,000 in sales into Vermont during the preceding 12-month period.
- Makes at least 200 individual sales transactions into Vermont during the preceding 12-month period.
Remote sellers only need to meet one of the economic nexus thresholds, not both. If you establish nexus, you’ll generally need to register and begin collecting Vermont sales tax.
What Is Taxable in Vermont?
Vermont generally imposes sales tax on retail sales of tangible personal property and certain services. Taxable products commonly include:
- Electronics
- Furniture
- Appliances
- Household goods
- Sporting equipment
- Certain digital products
Common exemptions include:
- Most clothing and footwear
- Grocery food
- Prescription medications
- Certain medical products
- Qualifying resale purchases
- Certain agricultural products
Vermont has numerous exemptions, so businesses should confirm the tax treatment of their specific products before collecting sales tax.
Vermont Clothing Exemption
One particularly useful Vermont-specific rule is its exemption for most clothing and footwear. Unlike states that exempt clothing only below a certain purchase price, Vermont generally exempts qualifying clothing regardless of price.
However, not every wearable item qualifies. Certain accessories, protective equipment, and sporting equipment may remain taxable. Retailers selling apparel should therefore distinguish qualifying clothing from taxable accessories and equipment.
How to Register for Vermont Sales Tax
Businesses required to collect Vermont sales tax can register with the Vermont Department of Taxes.
Registration and ongoing account management can be handled through myVTax.
The basic process includes:
- Register your business with the Vermont Department of Taxes.
- Provide your EIN and business information.
- Register for a Sales and Use Tax account.
- Receive confirmation of your registration.
- Begin collecting sales tax when required.
Vermont Sales Tax Rates
Vermont’s statewide Sales and Use Tax rate is 6%. Some municipalities impose an additional 1% Local Option Sales Tax, bringing the rate on qualifying transactions in those locations to 7%.
The local option tax is destination-based, meaning it generally depends on where the taxable product is delivered or received. Businesses should use Vermont’s Local Option Tax resources to determine whether an additional local tax applies to a particular transaction.
Vermont Meals and Rooms Tax
Vermont has separate tax rules for prepared meals, lodging, and alcoholic beverages served in restaurants.
The standard rates include:
- 9% on prepared and restaurant meals
- 9% on lodging and room charges
- 10% on alcoholic beverages served in restaurants
Some municipalities may also impose an additional 1% local option tax.
Businesses operating restaurants, hotels, short-term rentals, food trucks, or similar businesses should determine whether the Meals and Rooms Tax applies instead of, or alongside, the general Sales and Use Tax.
Marketplace Facilitator Rules
Marketplace facilitators such as Amazon, Etsy, eBay and Walmart Marketplace generally collect and remit Vermont sales tax on marketplace sales. If you also sell through your own website or directly to customers, you’re responsible for collecting tax on those sales if you have nexus.
Filing Requirements
Businesses registered for Vermont Sales and Use Tax are assigned a filing frequency by the Department of Taxes.
Your filing frequency is assigned when you register and is based on your expected sales tax liability and will either be:
- Monthly
- Quarterly
- Annually
Returns and payments can be submitted electronically through myVTax.
Businesses should follow the filing schedule assigned by the Vermont Department of Taxes and continue filing required returns while their account remains active.
Businesses that fail to file or remit Vermont sales tax on time may face late filing penalties, late payment penalties, interest on unpaid tax and collection actions.
Vermont Sales Tax Compliance Checklist
- Determine whether you have physical or economic nexus.
- Monitor the $100,000 or 200-transaction thresholds.
- Register for Sales and Use Tax when required.
- Determine which products and services are taxable.
- Apply the 1% local option tax where applicable.
- File all required returns on time.
FAQs
What is the sales tax rate in Vermont?
Vermont has a 6% state sales tax, with an additional 1% tax in some municipalities.
What is Vermont’s economic nexus threshold?
Remote sellers generally establish nexus at $100,000 in sales or 200 transactions during the preceding 12 months.
Is clothing taxable in Vermont?
Most qualifying clothing and footwear are exempt from Vermont sales tax.
Does Vermont tax prepared food?
Yes, prepared and restaurant meals are generally subject to Vermont’s separate 9% Meals Tax.
Do marketplaces collect Vermont sales tax?
Qualifying marketplace facilitators generally collect and remit Vermont sales tax on facilitated sales.
Final Thoughts
Vermont’s 6% state-wide sales tax is relatively straightforward, but businesses need to account for the state’s 1% local option taxes and rolling economic nexus thresholds. Retailers should also pay attention to Vermont-specific rules such as the clothing exemption and separate Meals and Rooms Tax. Registering when required, collecting the correct tax, and filing returns on time will help keep your business compliant.
Need help with Vermont sales tax registration, filings, or compliance? Contact our tax professionals today.
