VT
Vermont Small Business Tax Guide
Vermont sales, meals and rooms, and corporate taxes in the words of the statutes, with IRS points. Educational overview, not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in Vermont before making filing or planning decisions.
Tax landscape for small businesses
Every Vermont figure below is a quote from the Vermont Statutes Online, which describes itself as "an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience" and says it now includes the 2026 session's actions (Vermont, checked October 31, 2026). Only statute text is quoted here; for guidance and filing, go to the Vermont Department of Taxes. The IRS supplies the federal points, and every block gives a source and a date.
On sales, 32 V.S.A. § 9771 (Vermont Statutes Online, Vermont, checked October 31, 2026) says "there is imposed a tax on retail sales in this State", and "The tax shall be paid at the rate of six percent of the sales price charged for" the items it lists. For purchases that weren't taxed at sale, 32 V.S.A. § 9773 (Vermont, checked October 31, 2026) says "there is imposed on every person a use tax at the rate of six percent for the use within this State"
Meals and lodging have their own tax. 32 V.S.A. § 9241 (Vermont, checked October 31, 2026) says "An operator shall collect a tax of nine percent of the rent of each occupancy." It adds "An operator shall collect a tax on the sale of each taxable meal at the rate of nine percent of each full dollar of the total charge"
Worked example, with sample figures (rate from 32 V.S.A. § 9771 (Vermont Statutes Online, Vermont, checked October 31, 2026)): $800.00 worth of goods at "six percent" carries $48.00 of sales tax (800.00 x 0.06), so the invoice total is $848.00. The example applies only that statewide rate.
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| Sales tax | "six percent" | 32 V.S.A. § 9771 (Vermont Statutes Online, Vermont, checked October 31, 2026): "The tax shall be paid at the rate of six percent of the sales price charged for" the items listed in the section. |
| Use tax | "six percent" | 32 V.S.A. § 9773 (Vermont, checked October 31, 2026): "there is imposed on every person a use tax at the rate of six percent for the use within this State" |
| Meals and rooms tax | "nine percent" | 32 V.S.A. § 9241 (Vermont, checked October 31, 2026). For alcoholic beverages the same section sets a tax "at the rate of 10 percent of each full dollar of the total charge". |
| Corporate income tax | "6.00%" to "8.5%" | 32 V.S.A. § 5832 (Vermont, checked October 31, 2026): the schedule runs from "6.00%" on the first band to "$1,650.00 plus 8.5% of the excess over $25,000.00". |
Filing requirements
This list isn't a complete checklist for your business.
Vermont sales and use tax
32 V.S.A. § 9771 (Vermont Statutes Online, Vermont, checked October 31, 2026) imposes the sales tax and 32 V.S.A. § 9773 (Vermont, checked October 31, 2026) the use tax, each at "six percent". Ask the Vermont Department of Taxes how to register and which filing schedule applies to your business.
Selling into Vermont from another state
32 V.S.A. § 9701 (Vermont, as retrieved on November 1, 2026) counts as a vendor a person who sells tangible personal property from outside Vermont to destinations in Vermont, has no place of business or other physical presence in Vermont, "engages in regular, systematic, or seasonal solicitation of sales of tangible personal property in this State" (by displaying advertisements in Vermont, by distributing catalogues, periodicals, flyers or other print, radio or television advertising, or by mail, internet, telephone or other communication systems), and "has either made sales from outside this State to destinations within this State of at least $100,000.00, or totaling at least 200 individual sales transactions, during the 12-month period preceding the monthly period with respect to which that person’s liability for tax under this chapter is determined."
Exempt sales
32 V.S.A. § 9741, "Sales not covered" (Vermont, as retrieved on November 1, 2026), lists sales and uses that "shall be exempt from the tax on retail sales imposed under section 9771 of this title and the use tax imposed under section 9773 of this title". The list starts with "Sales not within the taxing power of this State under the Constitution of the United States" and includes, as item (2), "Drugs intended for human use, durable medical equipment, mobility enhancing equipment, and prosthetic devices and supplies, including blood, blood plasma, insulin, and medical oxygen, used in diagnosis or treatment intended to alleviate human suffering or to correct, in whole or in part, human physical disabilities" (item (2) then adds a proviso). It is long, and this guide doesn't reproduce it.
Meals and rooms tax
32 V.S.A. § 9241 (Vermont, checked October 31, 2026) puts the duty on the operator: "An operator shall collect a tax of nine percent of the rent of each occupancy." Ask the Department of Taxes how to register as an operator.
Corporate income tax
32 V.S.A. § 5832 (Vermont, checked October 31, 2026) sets a schedule and a floor for small C corporations: "For C corporations with Vermont gross receipts from $0.00–$500,000.00, the greater of the amount determined under subdivision (1) of this section or $100.00". Your tax professional can say whether it reaches your entity.
Federal estimated tax
The IRS estimated taxes page (In the US (federal), last reviewed or updated September 25, 2026) says "If you are in business for yourself, you generally need to make estimated tax payments."
Deductions and write-offs
Confirm with your state how it treats each item.
- Self-employment tax: the IRS self-employment tax page (In the US (federal), last reviewed or updated October 30, 2026) says "You can deduct the employer-equivalent portion of your self-employment tax in figuring your adjusted gross income."
- Home office: the IRS simplified home office page (In the US (federal), last reviewed or updated March 2, 2026) lists a "Standard deduction of $5 per square foot of home used for business (maximum 300 square feet)."
- Records: the IRS recordkeeping page (In the US (federal), last reviewed or updated May 1, 2026) says "You must be able to prove certain elements of expenses to deduct them."
Practical tips
- Keep meals and goods apart on your invoices. 32 V.S.A. § 9241 (Vermont, checked October 31, 2026) sets "nine percent" on taxable meals, while 32 V.S.A. § 9771 (Vermont Statutes Online, Vermont, checked October 31, 2026) sets "six percent" on sales.
- Store both rates. Billed's invoice software page (checked October 31, 2026) says "Save your tax rates and settings once, and Billed calculates taxes automatically when you create invoices and estimates."
- Hand your figures over at year end. Billed's expense tracking page (checked October 31, 2026) says "Reports can be filtered by date range and exported for your accountant, bookkeeper or tax software."
- Check the figures here against the Vermont statutes and IRS pages before you file.
Frequently asked questions
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At a glance
| Topic | What Vermont law or the IRS says |
|---|---|
| Sales tax | "The tax shall be paid at the rate of six percent of the sales price charged for" (32 V.S.A. § 9771, Vermont, checked October 31, 2026) |
| Use tax | "there is imposed on every person a use tax at the rate of six percent for the use within this State" (32 V.S.A. § 9773, Vermont, checked October 31, 2026) |
| Rooms | "An operator shall collect a tax of nine percent of the rent of each occupancy." (32 V.S.A. § 9241, Vermont, checked October 31, 2026) |
| Corporate top band | "$1,650.00 plus 8.5% of the excess over $25,000.00" (32 V.S.A. § 5832, Vermont, checked October 31, 2026) |
| Estimated tax | "Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed." (IRS, In the US (federal), last reviewed or updated September 25, 2026) |
When this isn't for you
Aimed at Vermont sellers, caterers and lodging operators running a small business. It doesn't cover the personal income tax schedule, any local tax, payroll or an audit. Ask the Department of Taxes or a tax professional about those.