Vermont's Sales Tax Rate

Vermont has a 6 percent sales tax on most goods and services. This is a single statewide rate — Vermont does not allow cities or towns to add local sales taxes on top of it. When you buy something in Vermont, the 6 percent is what you owe, with limited exceptions.

The tax applies to tangible goods you can touch and take home: clothing, groceries at checkout, electronics, furniture, and tools. It also applies to many services, including repairs, haircuts, and rental equipment. Some states tax services narrowly or not at all; Vermont taxes a broader range.

If you buy something online from a Vermont seller, you pay Vermont sales tax. If you buy from an out-of-state seller and have it shipped to Vermont, you may owe Vermont tax depending on whether that seller collects it — this varies by company size and state agreements.

Key Takeaways

  • Vermont's sales tax rate is 6 percent statewide with no local add-ons, so the rate is the same whether you shop in Burlington or a small town.
  • Groceries, prescription medications, and medical equipment are exempt from sales tax, but prepared food and non-prescription items are taxed.
  • Services like haircuts, repairs, and equipment rentals are subject to the 6 percent tax.
  • The tax is included in the final price at most retailers, though some show it separately at checkout.

What Is and Isn't Taxed in Vermont

Food you cook at home is exempt. This means groceries — produce, meat, dairy, bread, canned goods — are not taxed at the register. However, prepared food is taxed: a sandwich from a deli counter, a restaurant meal, or food from a hot bar all include the 6 percent tax. The line is whether the food is ready to eat.

Prescription medications are exempt, but over-the-counter drugs and vitamins are taxed. Medical devices prescribed by a doctor — such as diabetic supplies or mobility aids — are also exempt. Cosmetics and toiletries are taxed.

Clothing and footwear are taxed in Vermont, unlike in a few other states that exempt them. A shirt, shoes, or winter coat all include sales tax. Accessories like hats, belts, and bags are taxed as well.

Services are taxed broadly. A haircut, car repair, plumbing work, house cleaning, and equipment rental all include the 6 percent tax. Professional services like accounting or legal information are generally not taxed, but labor that produces a tangible result usually is.

How Sales Tax Appears on Your Receipt

Most Vermont retailers show the 6 percent tax as a separate line item at checkout, so you see the subtotal, then the tax amount, then the total. Some smaller businesses or online sellers may include it in the displayed price without breaking it out separately.

When you see a price tag in a store, it typically does not include tax — the tag shows the pre-tax price. The tax is added at the register. Online retailers vary: some show tax during checkout, others add it at the final step.

If you are buying multiple items, each taxable item is taxed individually. If you buy a shirt and groceries together, the shirt is taxed but the groceries are not, and your receipt will reflect that split.

Sales Tax on Online and Out-of-State Purchases

When you order from a Vermont business online, Vermont sales tax applies. The seller collects it and sends it to the state.

When you order from an out-of-state business, whether you owe Vermont tax depends on the seller's size and whether they have a legal presence in Vermont. Large retailers like Amazon, Walmart, and Target now collect Vermont sales tax on orders shipped to Vermont residents. Smaller sellers may not, and you would technically owe the tax yourself — though this is rarely enforced for individual purchases.

If you travel to another state and buy something there, you pay that state's tax. If you bring it back to Vermont, you do not owe Vermont tax on it — you already paid tax where you bought it.

Who Collects and Where the Money Goes

The retailer or service provider collects the sales tax from you and sends it to the Vermont Department of Taxes. Businesses file sales tax returns monthly or quarterly depending on their size and sales volume. The state uses this revenue for general operations, schools, and infrastructure.

If a business fails to collect or remit sales tax, the state can pursue the business for back taxes and penalties. As a customer, you are not responsible for tracking whether a business paid the tax it collected from you.

Sales Tax on Specific Items You Might Buy

A few common purchases show how the 6 percent rule works in practice. A $50 shirt costs $53 after tax. A $100 car repair costs $106. A $30 haircut costs $31.80. A $20 bag of groceries costs $20 — no tax added.

Vehicles are taxed, but the tax is usually paid to the Department of Motor Vehicles when you register the car, not at the point of sale. The rate is the same 6 percent, but it is handled separately from retail sales tax.

Gasoline is taxed at the pump, but the tax you see there is a fuel excise tax, not the sales tax. Vermont adds both: a fuel excise tax (which varies) plus the 6 percent sales tax on top of the base price.

Frequently Asked Questions

Do I pay sales tax on used items in Vermont?

Yes, if you buy a used item from a business — a used car from a dealer, used furniture from a shop, used electronics from a reseller — sales tax applies. If you buy from an individual in a private sale, sales tax does not explore, though the buyer may owe use tax to the state (rarely enforced).

Is there sales tax on digital products like e-books or software?

Vermont taxes digital products. E-books, software downloads, streaming subscriptions, and digital music are subject to the 6 percent sales tax. This applies whether you buy from a Vermont seller or an out-of-state one.

What if a receipt shows a different tax amount than 6 percent?

Check whether the item is exempt. If you bought groceries, prescription medications, or a medical device, the tax should be zero. If the item is taxable and the rate is higher than 6 percent, ask the cashier — it may be an error, or the business may be adding a local tax (though Vermont does not allow this). Request a corrected receipt.

Do I owe Vermont sales tax if I buy something online from out of state and pick it up in Vermont?

Yes. If you order from an out-of-state retailer and pick it up at a Vermont location, Vermont sales tax applies. The seller should collect it when you complete the purchase.

Is there a sales tax on hotel rooms in Vermont?

Hotel rooms are subject to a separate lodging tax, not the standard 6 percent sales tax. Vermont's lodging tax varies by municipality but is typically 9 to 10 percent. This is in addition to any local room and meals tax some towns charge.