Sales Tax Rules
Vermont imposes a state sales tax rate of 6%, with a maximum combined rate (state plus local) of 7% when local taxes are added. Economic nexus is triggered at $100,000 in sales or 200 transactions — meaning out-of-state businesses that exceed this threshold must collect and remit Vermont sales tax. SaaS and digital software products are generally exempt from sales tax in Vermont. Groceries are exempt from state sales tax.
SaaS Tax Details
SaaS was exempted from sales tax as of 2015.
Grocery Details
Food for home consumption is exempt; prepared food is taxed at the Meals rate.
What is the sales tax rate in Vermont?
Vermont's state sales tax rate is 6%. When local taxes are added, the maximum combined rate can reach 7%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in Vermont?
Vermont requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales or 200 transactions in a calendar year. Once nexus is established, the business must register, collect, and remit Vermont sales tax.
Is SaaS taxable in Vermont?
No. SaaS products are generally exempt from sales tax in Vermont. SaaS was exempted from sales tax as of 2015.
Are groceries taxed in Vermont?
Groceries are generally exempt from sales tax in Vermont. Food for home consumption is exempt; prepared food is taxed at the Meals rate.
Are digital goods taxable in Vermont?
Yes. Vermont taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to Vermont customers should collect sales tax.
Are clothing items exempt from sales tax in Vermont?
Yes. Clothing is generally exempt from sales tax in Vermont, which can provide meaningful savings for residents on everyday purchases.
How often do I need to file sales tax in Vermont?
Vermont requires sales tax filing on a Monthly, Quarterly, or Annual. Online filing is available through the official Department of Revenue portal.
Automate Vermont Sales Tax Compliance — Partner Services
Managing sales tax across multiple states is complex. These tools automate registration, calculation, filing, and remittance so you stay compliant without the headache.
Sponsored. DataTactic may earn a referral fee from these partners. This does not affect our data or editorial content.
Official Source
Vermont Department of Revenue
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.