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Estate and Inheritance Tax in Vermont

Vermont has an estate tax of 16% on the part of a Vermont taxable estate over $5,000,000.

Last checked . General information, not legal advice.

Vermont at a glance

State estate tax
Yes
Estate tax exemption
$5,000,000
The $5,000,000 level applies to deaths in 2021 or later. For the filing test, adjusted taxable gifts made within two years of death are added.
Top estate tax rate
16%
Flat 16% of the excess over $5,000,000.

Sources

Last checked

The rules in Vermont

Does Vermont have a state estate tax?

Yes. State estate tax in Vermont: yes.

What is the estate tax exemption in Vermont?

Estate tax exemption in Vermont: $5,000,000. The $5,000,000 level applies to deaths in 2021 or later. For the filing test, adjusted taxable gifts made within two years of death are added.

What is the top estate tax rate in Vermont?

Top estate tax rate in Vermont: 16%. Flat 16% of the excess over $5,000,000.

Where do the Vermont estate and inheritance tax rules come from?

The rules above come from 32 V.S.A. 7442a. Each source is linked on this page. We last checked them in October 2026.

Good to know

Effective June 18, 2026, the Legislature raised the estate tax filing threshold to $5 million to match the payment threshold.

What this means in practice

State estate tax exemptions can be much lower than the federal exemption, so an estate that owes no federal tax may still owe state tax. Some states adjust their exemption each year for inflation, so check the amount for the year of death.

Real estate is generally taxed by the state where it is located. A person who lives in one state and owns land in another may need to consider the rules of both states, which is one reason some people hold out-of-state property in a living trust.

Estate and inheritance tax returns have filing deadlines and may require payment before the estate is closed. Executors often work with a tax professional to value assets, claim deductions such as the marital and charitable deductions, and file on time.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.