Vermont: Local Option Tax Update
- Feb 29, 2016 | Gail Cole
Updated 8.23.2017
Municipalities in Vermont are permitted to levy several different local option taxes in addition to the state business taxes. Local option taxes are collected on the taxable (net) sale and are destination-based, meaning tax is based on the location where the buyer takes possession of the item or where the item is delivered.
A local option tax of 1% may be added to the following state taxes:
- Alcoholic beverages tax (10%)
- Meals tax (9%)
- Rooms tax (9%)
- Sales tax (6%)
Local option taxes do not apply to the following:
- Motor vehicle purchase and use tax
- Use tax
Except in the case of Burlington and Rutland, local option taxes are collected by the vendor and remitted to the Vermont Department of Taxes. Burlington and Rutland administer and collect their own local taxes, which are imposed on entertainment, lodging and meals.
Municipalities with local option sales tax:
- Brandon
- Burlington
- Colchester
- Dover
- Killington
- Manchester
- Middlebury
- Rutland Town
- St. Albans Town
- South Burlington
- Stratton
- Williston
- Wilmington
- Winhall
Municipalities with local option alcoholic beverages, meals and rooms taxes:
- Brandon
- Brattleboro
- Colchester
- Dover
- Hartford (as of Oct. 1, 2017)
- Killington
- Manchester
- Middlebury
- Montpelier
- Montpelier
- Rutland Town
- St. Albans Town
- South Burlington
- Stowe
- Stratton
- Willison
- Wilmington
- Winhall
- Woodstock
Additional information, including examples of how to apply state and local option taxes, is available on the Vermont Department of Taxes website.
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