Vermont sales tax adds 6% to most purchases across the Green Mountain State. That rate has held steady for years. However, your actual total can reach 7% depending on where you shop. About 37 municipalities tack on an extra 1% local option tax. For everyday shoppers, the good news is significant. Vermont exempts groceries, clothing, and medicine from sales tax entirely. This guide breaks down exactly what you’ll pay — and how to keep more money in your pocket. Check our full library of shopping guides for every state.
Vermont Sales Tax Rate: The Basics
The base Vermont sales tax rate is 6%. That applies to most tangible goods sold at retail. Some towns add a 1% local option tax on top. As a result, the combined rate ranges from 6% to 7%. The statewide average sits around 6.39%, according to Tax Foundation data. That falls below the national average of roughly 7.1% combined. Specifically, Vermont ranks among the lower third of states for total sales tax burden.
| Tax Component | Rate |
|---|---|
| Vermont State Sales Tax | 6.00% |
| Average Local Tax | 0.39% |
| Average Combined Rate | 6.39% |
| Maximum Combined Rate | 7.00% |
| National Average Combined | ~7.13% |
Vermont also charges separate rates on dining and lodging. Restaurant meals face a 9% meals tax. Alcoholic beverages served at restaurants carry a 10% tax. Hotel stays are subject to a 9% rooms tax. These are separate from the Vermont sales tax rate and can also have local additions.
What Vermont Does and Does Not Tax
Vermont is surprisingly shopper-friendly on exemptions. Groceries are completely exempt from Vermont sales tax. This includes candy and most beverages for home consumption. Clothing is also fully exempt. In addition, both prescription and over-the-counter medications are tax-free. Vermont is one of only about 10 states that exempt OTC drugs.
| Category | Taxed? | Details |
|---|---|---|
| Groceries | Exempt | Food for home consumption, including candy |
| Clothing | Exempt | General apparel is fully exempt |
| Prescription Drugs | Exempt | All prescription medications |
| OTC Medicine | Exempt | Pain relievers, cold medicine, etc. |
| Prepared Food | Taxed at 9% | Restaurant meals, deli items, hot food |
| Electronics | Taxed at 6% | Phones, computers, TVs, etc. |
| Furniture | Taxed at 6% | Home furnishings and décor |
| Jewelry & Accessories | Taxed at 6% | Handbags, watches, jewelry |
| Soft Drinks & Alcohol | Taxed | Taxable even at grocery stores |
There’s an important distinction with clothing. General apparel is exempt. However, accessories like handbags, jewelry, and watches are taxable. Protective equipment and sports gear also don’t qualify for the clothing exemption. For example, ski goggles and hiking boots may be taxed depending on classification. When budgeting for a shopping trip, keep these Vermont sales tax rules in mind.
Vermont Sales Tax by City and County
Your Vermont sales tax total depends on your location. Many towns stick with the base 6% state rate. However, a growing number of municipalities have adopted the 1% local option tax. Town Meeting Day in March 2026 saw several new towns vote to add it. Specifically, Burlington, Montpelier, and Rutland all charge the full 7%.
| City / Town | State Rate | Local Rate | Combined Rate |
|---|---|---|---|
| Burlington | 6.00% | 1.00% | 7.00% |
| South Burlington | 6.00% | 1.00% | 7.00% |
| Montpelier | 6.00% | 1.00% | 7.00% |
| Rutland | 6.00% | 1.00% | 7.00% |
| Brattleboro | 6.00% | 1.00% | 7.00% |
| Essex Junction | 6.00% | 1.00% | 7.00% |
| Williston | 6.00% | 1.00% | 7.00% |
| Manchester | 6.00% | 1.00% | 7.00% |
Many smaller rural towns have no local option tax at all. If you live in one of those areas, you pay only the 6% state rate. The Vermont Department of Taxes maintains a Local Option Tax Finder on their website. It’s worth checking before making a large purchase. Even a 1% difference adds up on big-ticket items like furniture or appliances.
Vermont Sales Tax Holidays
Vermont does not have any sales tax holidays. There are no tax-free weekends for back-to-school shopping. There are no hurricane preparedness exemptions either. The state has never adopted a sales tax holiday program. This is unlikely to change in the near future.
However, neighboring states offer options worth knowing about. Connecticut holds an annual tax-free week in August for clothing under $100. Massachusetts has a sales tax holiday weekend, typically in August. New Hampshire charges no sales tax at all — year-round. For shoppers near the border, a trip to New Hampshire can save the full Vermont sales tax on large purchases. Plan your timing with our month-by-month buying calendar.
Online Shopping and Vermont Sales Tax
Vermont sales tax applies to online purchases just like in-store shopping. The state uses destination-based sourcing. That means the rate charged matches your shipping address. If you live in Burlington, you’ll pay 7% on Amazon orders. If you’re in a town without the local option tax, you pay 6%.
Major retailers like Amazon, Walmart, and eBay collect Vermont sales tax automatically. This has been the case since 2018. Any out-of-state seller with more than $100,000 in Vermont sales must collect the tax. Marketplace platforms handle collection for their third-party sellers too. In addition, shipping charges are taxable in Vermont. They’re included in the taxable amount regardless of how they appear on your receipt.
Specifically, there is no way to avoid Vermont sales tax by shopping online from out-of-state retailers. The days of tax-free internet shopping are long gone. However, you can still save by using coupon stacking strategies to reduce the pre-tax price of your purchases.
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Smart Shopping Tips for Vermont
1. Shop in New Hampshire for big-ticket items. New Hampshire has zero sales tax. If you’re buying a $1,500 laptop, that’s $90 to $105 saved depending on your Vermont rate. The drive may be worth it for furniture, electronics, or appliances. This is one of the best advantages of living in Vermont.
2. Take advantage of Vermont’s generous exemptions. Groceries, clothing, and medicine are all tax-free. Stock up on essentials without worrying about Vermont sales tax. Budget your taxable purchases separately so there are no surprises at checkout.
3. Use cashback apps to offset the tax. Apps like Rakuten, Ibotta, and Capital One Shopping can return 1–10% on purchases. That often covers the full Vermont sales tax amount. Check our cashback app reviews to find the best options for your shopping habits.
4. Time your purchases strategically. While Vermont has no tax holidays, retailers run their own sales cycles. Black Friday, Prime Day, and end-of-season clearances reduce your base price. A lower price means less Vermont sales tax in dollar terms. For more timing strategies, see our guide to saving money shopping online.
5. Check your town’s local option tax status. If you live near a town line, the store’s location matters for in-person shopping. A store one town over might charge 6% instead of 7%. On a $500 purchase, that’s $5 saved. It adds up over a year of shopping.
Frequently Asked Questions
What is the sales tax rate in Vermont?
The Vermont sales tax rate is 6% at the state level. Some municipalities add a 1% local option tax, bringing the maximum combined rate to 7%. The statewide average combined rate is approximately 6.39%.
Are groceries taxed in Vermont?
No. Groceries are fully exempt from Vermont sales tax. This includes most food and beverages purchased for home consumption, including candy. However, prepared foods like restaurant meals and deli items are subject to a separate 9% meals tax. Soft drinks and alcoholic beverages are also taxable.
Does Vermont have a sales tax holiday?
No. Vermont does not currently offer any sales tax holidays or tax-free shopping weekends. Neighboring New Hampshire has no sales tax year-round. Massachusetts and Connecticut each hold annual tax-free shopping events, typically in August.
Start Saving on Every Purchase
Now that you know your state’s sales tax rates, use that knowledge to time your purchases and stack savings. Combine tax-free shopping periods with cashback apps and coupon codes to keep more money in your pocket.
Official Sources
- Tax Foundation — state and local sales tax data
- IRS.gov — federal tax information
- FTC Consumer Information — shopping rights and protections
Rates current as of May 2026. Sales tax rates change periodically. Always verify current rates with your state’s revenue department.