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Vermont State Tax and local tax profile
Income Taxes
- Tax Rate Range: Low - 3.6%; High - 9.5%
- Income Brackets: **Lowest - $30,650; Highest - $336,550
- Number of Brackets: 5
- Personal Exemptions: Single - $3,200; Married - $6,400; Dependent - $3,200
- Standard Deduction: Federal amount
- Medical/Dental Deduction: Federal amount
- Federal Income Tax Deduction: None
- Retirement Income Taxes: No exemptions, except for Railroad Retirement benefits. Out-of-state government pensions are fully taxed.
- Retired Military pay: Follows federal tax rules.
- Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
- VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
- Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
Sales Taxes
- State Sales Tax: 6% (medical items, food, equipment and fuel, residential fuel and electricity, clothing and shoes with a purchase price of $110 or less, prescription and non-prescription drugs are exempt); Local jurisdictions may add an additional 1%. Tax is 9% of prepared foods and restaurant meals and lodging. 10% on alcoholic beverages served in restaurants.
- Gasoline Tax: 20 cents/gallon
- Diesel Fuel Tax: 26 cents/gallon
- Cigarette Tax: $1.79/pack of 20
Property Taxes
- Real estate taxes have two components; school property tax and municipal property tax. Both taxes are billed and collected by the town or city where the real estate is located.
- A statewide education tax is imposed on all nonresidential and homestead property at the following rates: (1) the tax rate for nonresidential property is $1.59 per $100.00; and (2) the tax rate for homestead property is $1.10 multiplied by the district spending adjustment for the municipality, per $100.00, of equalized education property value. The homestead property tax rate for each municipality which is a member of a school district is calculated under subsection "e" of state statute section 5405. For rates by town, click here.
- The Municipal Property Tax is based on the town's grand list and is used to fund the town's services. The rate varies in each town depending on the funds needed to operate municipal services. Eligible Vermont residents can make a claim for a rebate of their school and municipal property taxes if household income does not exceed $47,000. The rebate refunds the difference between a percentage of the claimant's household income and the eligible taxes. Eligible taxes are combined school and municipal property taxes less the education property tax payment. For more information, call 802-828-2865.
Estate Tax
- There is no inheritance and the estate tax is limited and related to federal estate tax collection.
- For further information, visit the Vermont Department of Taxes site or call 802-828-2720.
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Last Updated ( Monday, 21 January 2008 )
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