What is the Vermont sales tax rate?
The state rate is 6%. A number of towns and cities, including Burlington, have adopted a 1% local option tax, which makes the rate 7% for deliveries there. Clothing and groceries are exempt. Vermont began taxing software accessed online in 2024, so check the current rules if you sell software.
When does an online seller have to collect in Vermont?
You must collect if you have a physical presence in Vermont, such as staff, an office or inventory, or if in the previous 12 months your sales into Vermont were $100,000 or more or you made 200 or more separate transactions. Either test is enough. The period is a rolling one, usually checked at the end of each quarter over the previous four quarters, not the calendar year. Several guides say sales made through marketplaces count towards the tests.
How nexus works in general is covered in physical vs economic nexus and economic nexus explained.
What if you sell on Amazon, eBay or Etsy?
Vermont requires marketplace facilitators to collect and remit sales tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.
How do you register?
Register online through myVTax, the Department of Taxes' portal, for a sales and use tax account. There is no fee. Vermont is a member of the Streamlined Sales Tax agreement, so you can also register through the Streamlined system. See Streamlined Sales Tax registration.
What are the steps once you have nexus?
Confirm nexus
Check your presence and your sales into Vermont against its threshold.
Register before collecting
With the Vermont tax agency, as set out above.
Set up your store
Charge the correct combined rate for each delivery address and product.
File and pay
On the schedule Vermont assigns, including zero returns where required.
How are returns filed?
Returns are filed through myVTax and are due by the 25th of the month after the period. The Department assigns monthly, quarterly or annual filing based on the tax you collect. The local option tax is reported on the same return, so there is no separate local filing.
See how to file a sales tax return.
Why does the 200-transaction test matter?
Because it can be met at a low sales value. A seller of $20 items reaches 200 Vermont orders after $4,000 of sales, far below $100,000, and must then register and collect. Many states have dropped their transaction tests, but Vermont has kept its own, so count orders as well as dollars.
How does the local option tax work?
A town or city can adopt a 1% tax on top of the state's 6%. It applies to the same sales as the state tax, based on the delivery address, and the state collects it on the same return. Because only some municipalities have adopted it, your store needs to apply it by address; the Department of Taxes publishes the list.
What else should sellers know?
- Sellers outside the US: the same rules apply wherever the business is based. See selling on Amazon US as a non-resident.
- Late registration: tax you should have collected becomes your own debt. See voluntary disclosure agreements and collected but not remitted.
- Records: keep sales by delivery address, tax collected and any certificates. See exemption certificates and sales tax audits.
- Stopping: returns stay due until the account is closed. See filing frequency and cancelling a sales tax permit.
- Store settings: switch on collection only once you are registered. See Shopify sales tax setup.
Selling into Vermont?
We check whether you have Vermont nexus, register you, and file your Vermont sales tax returns.
Questions people ask
What is the Vermont economic nexus threshold?
$100,000 or more of sales, or 200 or more transactions, into Vermont in the previous 12 months.
What is the Vermont sales tax rate?
6% at state level, plus a 1% local option tax in some towns.
Is clothing taxed in Vermont?
No. Clothing is exempt.
When are Vermont sales tax returns due?
By the 25th of the month after the period.
Sources
Every fee, date and rule on this page was taken from these official and primary sources.
- Vermont Department of Taxes: Sales and use tax
- Supreme Court of the United States: South Dakota v. Wayfair, Inc., 585 U.S. 162 (2018)
- Streamlined Sales Tax Governing Board: Marketplace facilitator state guidance
Rules and fees change. If you are reading this long after October 2, 2026, confirm the figures with the source before you rely on them.
Related guides
More in State sales tax
This guide is general information. It is not tax or legal advice for your situation.