Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Vermont.
August 18, 2025
Vermont’s Updates Local Option Tax Rates
Authored by: Courtney Easterday, MSA and Ryan Schupp
The Vermont Department of Taxes has released an updated list of municipal tax rates, effective July 1, 2025. As part of the update, three municipalities—Hartford, Marlboro, and Montpelier—will begin assessing an additional 1% local option sales tax.
This change reflects the municipalities’ decision to adopt the local option tax to support community services and infrastructure. Businesses operating in these areas should update their point-of-sale systems and ensure compliance with the revised tax rates.
For a complete list of municipal tax rates and further guidance, taxpayers are encouraged to consult the Vermont Department of Taxes website.
If you have questions about how local sales taxes may affect your business, please reach out to a member of the Withum SALT Team.
August 14, 2024
Vermont Repeals Sales Tax Exemption on Cloud Software
Authored by: Brandon Mejia and Penny Sweeting, CPA
On June 17, 2024, the Vermont Legislature repealed the sales and use tax exemption on remotely accessed prewritten computer software (H.B.887). Beginning July 1, 2024, the state’s definition of taxable tangible personal property will include prewritten computer software regardless of how the software is paid for, delivered, or accessed by the consumer. Since 2012, the taxability of software has been in flux in Vermont. First, through a moratorium and, more recently, in 2015, with a change of definition that did not specify how the prewritten software was delivered. The current change clarifies that remotely accessed prewritten software will no longer be considered exempt from sales taxes and is taxed at Vermont’s rate of 6%.
For additional information, please refer to Bill Status H.887 (Act 183).
If you have questions about how states tax digital goods and services, please reach out to a member of the Withum SALT Team.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.
Have Questions or Need Guidance?
For more information on this topic, please contact a member of our team.