An inheritance tax is a tax imposed on a person who inherits property from a deceased person. There is no federal inheritance tax, but some states have an inheritance tax.
In the state of Vermont, there is no inheritance tax imposed on individuals who inherit property from a deceased person. While some states in the United States do levy an inheritance tax, Vermont is not one of them. It's important to note that this is separate from the federal estate tax, which is a tax on the transfer of the estate of a deceased person before the assets are distributed to the heirs, and Vermont does have a state estate tax. The estate tax applies to the overall value of the estate, not to the individuals who inherit the property. As of the current regulations, beneficiaries in Vermont do not need to worry about paying a state inheritance tax on property they receive.