Vermont sales tax at a glance
| Type of tax | Sales and use tax |
|---|---|
| State rate | 6% |
| Local rates | Average 0.43%, highest 1.00% |
| Average combined rate | 6.43% |
| Groceries | ExemptFood for home consumption is exempt. Soft drinks and sealed alcoholic beverages are taxable. |
| Prescription drugs | Exempt (also OTC)Prescription drugs are exempt, and so are qualifying over-the-counter drugs. |
| Clothing | ExemptClothing and footwear are exempt with no price cap. Sports equipment such as ski boots and cleats is taxable. |
Local averages are population-weighted figures from the Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026). They are a guide, not the rate at any one address. For the exact rate where you buy, use the Vermont Department of Taxes: Local option tax.
Worked examples
A $1,200 laptop in Burlington (7%)
| Rate | 6% state + 1% local = 7% |
|---|---|
| Price before tax | $1,200.00 |
| Sales tax | $84.00 |
| Total | $1,284.00 |
Working: $1,200.00 × 7% = $84.00. Burlington adds the 1% local option sales tax. A winter coat bought in the same store would be exempt as clothing.
Working back from a $63.60 receipt at 6%
| Rate | 6% |
|---|---|
| Price before tax | $60.00 |
| Sales tax | $3.60 |
| Total | $63.60 |
Working back: $63.60 ÷ 1.06 = $60.00, so the tax was $3.60. Most Vermont towns have no local option sales tax, so divide by 1.06. In a 7% town, divide by 1.07 instead.
The 1% local option tax
Vermont towns can adopt a 1% local option tax on sales, on meals and alcohol, on rooms, or any combination. The sales version applies to the same items as the state sales tax but is not added to use tax. Burlington has had one since 2006 and Winooski since 2019. Seven more towns started on 1 July 2026: Bristol, Fair Haven, Morristown, Pomfret, Swanton, Vergennes and Waitsfield, while Montgomery dropped its tax in October 2025. The Department of Taxes keeps the current list.
Clothing, food and medicine are exempt
Vermont is one of the few states that exempt all everyday clothing and footwear with no price limit. Sports and recreational equipment, such as ski boots and cleats, is taxable. Food for home consumption is exempt, but soft drinks and sealed alcoholic beverages are taxed. Prescription drugs and qualifying over-the-counter medicines are exempt too. Restaurant meals and lodging are taxed under Vermont's separate meals and rooms tax rather than the sales tax.
Vermont vs. neighboring states
| State | State rate | Avg. combined | Groceries |
|---|---|---|---|
| Vermont | 6% | 6.43% | Exempt |
| New Hampshire | 0% | 0.00% | No sales tax |
| Massachusetts | 6.25% | 6.25% | Exempt |
| New York | 4% | 8.54% | Exempt |
Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.