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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).
Vermont's income tax rates are assessed over 5 tax brackets. For single taxpayers: 1  3.55% on the first $37,450 of taxable income. 2  6.8% on taxable income between $37,451 and $90,750. 3  7.8% on taxable income between $90,751 and $189,300.  8.8% on taxable income between $189,301 and $411,500.