Revenue Description Description of Principal General Fund Revenue Sources Vermont personal income tax liability is calculated as a percentage of the federal personal income tax liability. Sales and Use Tax Vermont has a general tax on retail sales which is primarily directed at commodity transactions. Among the commodities exempt from the sales tax are food, medical equipment, prescriptions, manufacturing equipment, fuel used in manufacturing and residential fuel. The above rates became effective January 1, 1997.
Cigarettes are also subject to the sales tax.
Real Property Transfer Tax A tax is imposed upon the transfer by deed of title to property located within the State of Vermont. Beverage Tax Beverage taxes are levied on bottlers and wholesalers of malt and vinous beverages at the rates of 26.5 cents and 55 cents per gallon, respectively. Vinous beverages are also subject to the general sales tax. Estate Tax Transfers of estates are taxed in an amount equal to the federal credit for state death taxes. Diesel fuel purchased at the pump is taxed at a rate of seventeen cents per gallon.