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The Vermont Estate Tax System. Vermont recently enacted new legislation that imposes a state estate tax regardless of whether there is a federal estate tax imposed. Under this new system, estates in excess of $2.75 million dollars are subject to tax (it is unclear whether lifetime gifts are included in this threshold).
There are three local option taxes in Vermont: a 1% general local option sales tax in addition to the 6% general Vermont state rate; a 1% local option meals and room tax in addition to the 9% state rate; and a 1% local option alcoholic beverage tax in addition to the 10% state rate. The following municipalities have a 1% local option sales tax: