Vermont Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for Vermont in 2026, with political context.
No
No Income Tax
8.75% (top)
Income Tax Rate
#12
Tax Burden Rank (1=highest)
#37
Property Tax Rank (1=highest)
Tax Policy Overview
Vermont has high income taxes and above-average overall tax burden. Property taxes fund education through a statewide property tax with income sensitivity adjustment. Vermont has the highest corporate tax rate in New England. The state is willing to tax high earners to fund its progressive social agenda.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 8.75% (top) |
| No Income Tax | No |
| Sales Tax | 6.0% |
| No Sales Tax | No |
| Corporate Tax | 7.0-8.5% |
| Property Tax Rank | #37 nationally (1=highest) |
| Overall Tax Burden Rank | #12 nationally (1=highest) |
Political Context
Vermont progressives and Democrats embrace high taxes to fund universal healthcare ambitions, generous education funding, and social programs. Governor Scott (R) has vetoed some tax increases but signed others. Vermont’s high income taxes are a political asset for the left and liability for business recruitment.