Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Vermont, sales tax is a state-imposed tax on the sale of most goods and some services. The state sales tax rate is 6%, and there is an additional 1% local option tax that municipalities can impose, making the potential total sales tax up to 7% in some areas. Certain items, such as food for home consumption, prescription drugs, and medical devices, are exempt from sales tax. Vermont also imposes a use tax on items purchased for use in Vermont but bought from out-of-state vendors who do not collect Vermont sales tax. The use tax rate is the same as the sales tax rate and is intended to ensure that Vermont businesses are not at a competitive disadvantage with out-of-state sellers.