Vermont Sales Tax Calculator (2026) — Add or Reverse Tax
Vermont's combined sales tax rate is 6.39% (6.00% state + 0.39% average local). Use the calculator below to add Vermont sales tax to a price, or reverse a tax-included total to find the pre-tax price and exact tax amount.
How to use this calculator:
- Adding tax — enter a pre-tax price, pick "Add tax to price," and the calculator applies the Vermont rate to show the tax amount and final total.
- Reversing (extracting) tax — enter a total that already includes tax, pick "Extract tax from total," and the calculator divides by 1 + the rate to isolate the pre-tax price and the exact tax paid.
- Pick the rate that matches your situation: the average combined rate is a good statewide estimate, but the state-only or maximum-local rate is more precise if you know the exact city or county.
Understanding Vermont Sales Tax
Vermont's state sales tax rate is 6.00%, and local jurisdictions add an average of 0.39% on top, bringing the typical combined rate to 6.39%. Rates vary by city and county — the highest combined rate in Vermont can reach 7.00%.
Vermont also levies a state income tax, which shapes how much the state relies on sales tax revenue relative to other funding sources.
Groceries
Exempt from Vermont state sales tax.
Largest city
Burlington
State income tax
Yes
Why Reverse Sales Tax Calculation Matters
Receipts, invoices, and marketplace payouts usually show only the tax-included total — not the pre-tax price. Reversing the calculation matters for bookkeeping (separating revenue from tax collected), expense reports (reimbursing only the pre-tax cost), and price comparisons (checking what an item actually costs before Vermont's tax is applied). Because dividing by (1 + rate) is not the same as simply subtracting the rate from the total, doing this by hand is a common source of errors — the calculator above handles it exactly.
Vermont Taxability at a Glance
🛒 Groceries
Exempt
👕 Clothing
Exempt
💊 Prescription drugs
Exempt
History & Rate Breakdown
Vermont first imposed its sales and use tax in 1969 at 3%. The rate has been adjusted repeatedly since — up to 4% in 1982, temporarily to 5% in 1991, back down and up again through the 1990s, and finally to today's 6% in 2006. Clothing became exempt in 1999, with footwear following in 2001, and a 1% local option tax was authorized in 1997.
Vermont's 6.39% average combined rate is mostly the 6% state rate, with a thin local option layer (averaging 0.39%) that some municipalities have adopted, applying only to items that are already taxable at the state level.
Where the Money Goes
Vermont's clothing and footwear exemptions were phased in gradually at the turn of the century specifically to reduce the sales tax burden on everyday necessities, mirroring the policy reasoning behind similar exemptions in neighboring Massachusetts and New York.
Business Use Case: Registering & Collecting Vermont Sales Tax
A retailer in a Vermont town that has adopted the 1% local option tax charges 7% total on taxable goods, while an identical retailer in a town that hasn't adopted it charges just the 6% state rate — and neither charges any tax at all on most clothing and footwear thanks to the state exemption.
Sales Tax Terms Glossary
Combined rate
The state sales tax rate plus any applicable local (city, county, or special district) rates — the actual rate charged at checkout in a given location.
Reverse sales tax
The process of working backward from a tax-included total to find the pre-tax price and the exact tax amount, using total ÷ (1 + rate) = pre-tax price.
Economic nexus
A sales threshold (in dollars, transaction count, or both) that obligates an out-of-state seller to collect and remit sales tax even without a physical presence in the state.
Marketplace facilitator
A platform (e.g. Amazon, Etsy, eBay) that collects and remits sales tax on behalf of third-party sellers under most states’ marketplace facilitator laws.
Real-World Example
A $500.00 purchase in Vermont at the average combined rate of 6.39%:
- Tax amount: $500.00 × 6.39% = $31.95
- Total price: $500.00 + $31.95 = $531.95
Vermont Sales Tax Compliance for Sellers
Remote and online sellers establish economic nexus in Vermont once they exceed $100,000.00 in annual sales or 200+ separate transactions. Once nexus is established, a seller must register with the state, collect Vermont sales tax at checkout, and file returns on the state's required schedule. Marketplace facilitators (Amazon, Etsy, eBay, Walmart) generally collect and remit on behalf of third-party sellers automatically.
Frequently Asked Questions — Vermont Sales Tax
What is the sales tax rate in Vermont?▾
Does Vermont tax groceries?▾
Does Vermont have a state income tax?▾
When do online sellers need to collect Vermont sales tax?▾
How do I calculate Vermont sales tax on a purchase?▾
How do I reverse Vermont sales tax to find the price before tax?▾
What is the formula to back out sales tax from a receipt in Vermont?▾
References & Sources
Rates last verified January 2026. Vermont sales tax rates and thresholds can change — always confirm current figures with the Vermont Department of Revenue before filing or invoicing. This tool is for estimation and educational purposes only and is not tax, legal, or accounting advice.
Jordan Hayes
Verified AuthorLead Content Editor & Personal Finance Specialist
Jordan Hayes is a personal finance content strategist with 9+ years building educational finance and health resources. He has written and fact-checked over 200 personal finance guides covering mortgage amortization, retirement planning, tax strategy, and budgeting. His work applies IRS publications, Federal Reserve data, and peer-reviewed research to make complex calculations accessible.