What is Exempt from Sales Tax in Vermont?

What is exempt from sales tax in Vermont?
Read more on tax.vermont.gov

The retail sale, lease, or rental of tangible personal property in Vermont, as well as some services, are all subject to a sales and use tax. The current sales and use tax rate in Vermont is 6%. However, some goods in Vermont are exempt from paying sales tax.

In Vermont, the following items are exempt from sales tax: 1. Clothes and shoes: In Vermont, clothing and shoes that cost less than $110 each are exempt from sales tax. Clothing and footwear made for sports exercise or protective purposes are not covered by this exemption.

2. Groceries: In Vermont, the majority of grocery products, such as food and non-alcoholic drinks, are exempt from sales tax. 3. Prescription drugs: In Vermont, prescription medications are exempt from sales tax. 4. Medical supplies and equipment: In Vermont, medical supplies and equipment that are utilized for medical purposes are free from sales tax. 5. Agricultural products: In Vermont, products used for agriculture, such as seeds, fertilizer, and pesticides, are exempt from sales tax.

6. School supplies: In Vermont, all school supplies, including textbooks, are tax-free.

It is significant to remember that not all services in Vermont are subject to sales tax. In Vermont, for instance, there is no sales tax on services including medical care, legal counsel, and accountancy.

Are taxes in Vermont high?

Although Vermont does have a reputation for having high taxes, this perception is not entirely accurate. Although the income tax rates in Vermont are extremely high, the state’s property tax rates are also quite low. Additionally, compared to other states, Vermont’s sales tax rate is about average.

How much do Vermont property taxes cost?

Vermont’s property tax rates are generally lower than those in other states, though they might vary based on local tax rates. Vermont’s 1.86% average property tax rate in 2020 was lower than the 1.08% national average.

In conclusion, a number of things are exempt from sales tax in Vermont, including groceries, prescription pharmaceuticals, medical equipment and supplies, farm and school supplies, apparel and footwear, and medical equipment and supplies. Although the income tax rates in Vermont are extremely high, the state’s property tax rates are also quite low. Additionally, compared to other states, Vermont’s sales tax rate is about average.

FAQ
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I’m sorry, but Vermont’s sales tax exemptions listed in the article

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