6% is the current sales tax rate in Burlington, Vermont, the same as the rest of the state. However, several things are free from this levy, including food, clothing, and prescription drugs. In addition, the state levies a use tax on transactions made outside of Vermont that would have been subject to sales tax there.
While Vermont is not seen as a state with low taxes, it is also not regarded as a state with high taxes. The rate range for the state’s progressive income tax is from 3.35% to 8.75%. With rates varied by municipality, property taxes are also a substantial source of income for the state.
Vermont levies a meals and rooms tax, which is a tax on prepared food and lodging, in addition to sales and income taxes. Currently, this tax is 9% in rate, with 1% of that amount going to the municipality where it was collected. Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, Tennessee, and New Hampshire (although New Hampshire does tax interest and dividends) are the nine states that do not impose an income tax on residents.
In conclusion, while Vermont’s sales tax exemptions are perpetual, not all goods and services are exempt. The state levies a meals and lodging tax in addition to an income tax that is progressive. In comparison to other states in the nation, Vermont is not seen as having a high tax rate, but it is also not regarded as having a low tax rate either.