Key takeaways
- Vermont sales tax rates: The statewide rate is 6%, and some localities add a 1% Local Option Tax for 7% combined. Prepared and restaurant meals are taxed at 9% under the separate meals and rooms tax.
- Economic nexus: Remote sellers must collect once they exceed $100,000 in gross revenue or 200 transactions with Vermont buyers in the prior 12 months. Either threshold triggers a collection obligation.
- Filing & penalties: Returns are due on the 25th of the month after the period. Late filing or payment costs 5% per month, up to 25% of the tax due.
Vermont sales tax key facts (2026)
| Item | Vermont |
|---|---|
| Statewide rate | 6% |
| Local option tax | +1% in some localities (up to 7%) |
| Economic nexus threshold | $100,000 or 200 transactions |
| Sourcing | Destination-based |
Collect and file Vermont sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
Yes (since July 1, 2024).
| Item | Vermont |
|---|---|
| Groceries / clothing | Exempt |
| Prepared meals | 9% (meals & rooms tax) |
| Return due date | 25th of the month after the period |
| Governing agency | Vermont Department of Taxes |
What is the sales tax rate in Vermont?
Vermont’s statewide sales and use tax rate is 6%. Certain localities add a 1% Local Option Tax, bringing the combined rate to 7%. Use the Vermont Local Option Tax Finder to check which localities levy it.
Do you have sales tax nexus in Vermont?
Nexus is the connection that obligates your business to collect and remit Vermont sales tax. You can establish it two ways — physically or economically. Either one is enough.
Physical nexus
You have physical nexus if you have a tangible presence in Vermont, such as:
- A business location in the state, including offices or warehouses
- Soliciting sales systematically or seasonally via advertising, mail, or online
- Employing staff who solicit and accept orders in the state
- An affiliate or referral relationship generating more than $10,000 in sales in the prior year
Economic nexus
Out-of-state sellers establish economic nexus if, in the prior 12 months, they exceeded $100,000 in gross revenue or 200 transactions with Vermont buyers. Either threshold triggers a collection obligation.
What is taxable in Vermont?
Most tangible personal property is taxable, but Vermont exempts several categories — including clothing, groceries, and medical supplies and prescription drugs.
Is SaaS taxable in Vermont?
Yes. As of July 1, 2024, SaaS (prewritten software accessed remotely) is taxable in Vermont — a change from its prior exemption.
How is food taxed in Vermont?
Most food products and beverages are exempt, except soft drinks and vending-machine items. Prepared and restaurant meals are taxed at 9% under the separate meals and rooms tax.
How to register for a Vermont sales tax permit
Register with the Vermont Department of Taxes before collecting. Taxually can register for you, or you can apply online or by mail/fax using Form BR-400. Registration is free, and you’ll receive a Sales and Use Tax license to display.
Have ready: personal identification (SSN, address), business identification (EIN, address), and your NAICS code.
How to collect sales tax in Vermont
Vermont is destination-based — the rate is set by the delivery location. Apply the 6% state rate plus any 1% Local Option Tax. Both in-state and out-of-state sellers collect this way.
Filing and paying Vermont sales tax
The Department assigns monthly, quarterly, or annual filing based on your volume. Returns are due the 25th of the month following the period (next business day if a weekend or holiday). Businesses with more than $100,000 in annual liability must file and pay online.
File and pay through the myVTax portal or by mail (Form SUT-451). Taxually’s software automates the full process.
Penalties for late or non-compliant filing
Failing to file or pay on time triggers these penalties:
- Late filing/payment: 5% per month, up to a maximum of 25% of the tax due.
- Interest accrues at a rate set annually by the Department.
Frequently asked questions
What is the sales tax rate in Vermont in 2026?
The state rate is 6%, plus a 1% Local Option Tax in some localities (7% combined).
What is the economic nexus threshold for Vermont?
$100,000 in gross revenue or 200 transactions with Vermont buyers in the prior 12 months.
Is SaaS taxable in Vermont?
Yes. SaaS became taxable in Vermont on July 1, 2024.
Are groceries and clothing taxed in Vermont?
No. Vermont exempts groceries and clothing. Prepared meals are taxed at 9% under the meals and rooms tax.
When are Vermont sales tax returns due?
The 25th of the month following your reporting period.
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