Exemption & rate verified against primary sources · Updated October 1, 2026
Vermont Estate Tax in 2026: Exemption, Rates & Calculator
Vermont keeps its estate tax simple: a $5,000,000 exemption, and a single flat 16% rate on everything above it — no brackets, no credit tables, no cliffs.
Calculate Vermont estate tax for your situationHow Vermont taxes an estate
Vermont's own statute has exactly one non-zero rate row: 16% of the amount by which the taxable estate exceeds $5,000,000. There's genuinely nothing more complex going on underneath.
Applied to the amount above Vermont's $5,000,000 exemption.
| Range | Rate |
|---|---|
| $0 – $5,000,000 (exemption) | 0.0% |
| Over $5,000,000 | 16.0% |
Worked example
A $10,000,000 Vermont taxable estate has $5,000,000 above the exemption. At the flat 16% rate, that's $800,000 in Vermont estate tax.
Rules worth knowing
- The $5,000,000 exemption has been in place since 2021 (raised from $4,250,000) and is not indexed for inflation.
- Because the rate is genuinely flat with no bracket structure, this is one of the simplest state estate tax calculations to verify by hand.
Filing deadline
The federal Form 706 return, when required, is due 9 months after the date of death (IRC §6075(a)). Vermont's own estate tax return has its own deadline — confirm the exact requirement with the Vermont Department of Taxes rather than relying on the federal date.
How Vermont compares to the other states with an estate tax
13 states plus D.C. levy their own estate tax on top of the federal one, each with a different exemption, top rate, and calculation method — here's every one of them side by side.
| State | Exemption | Top rate | How it's calculated |
|---|---|---|---|
| Oregon | $1,000,000 | 16.0% | Graduated 10%–16% |
| Rhode Island | $1,838,056 | 16.0% | Federal credit table |
| Massachusetts | $2,000,000 | 16.0% | Federal credit table |
| Minnesota | $3,000,000 | 16.0% | Graduated 13%–16% |
| Washington | $3,000,000 | 20.0% | Flat 20% (date-sensitive) |
| Illinois | $4,000,000 | 16.0% | Lesser-of two formulas |
| the District of Columbia | $4,988,400 | 16.0% | Graduated 11.2%–16% |
| Maryland | $5,000,000 | 16.0% | Flat 16% (credit-table equiv.) |
| Vermont (this page) | $5,000,000 | 16.0% | Flat 16% |
| Hawaii | $5,490,000 | 20.0% | Graduated 10%–20% |
| Maine | $7,160,000 | 12.0% | Graduated 8%–12% |
| New York | $7,350,000 | 16.0% | Graduated + 105% cliff |
| Connecticut | $15,000,000 | 12.0% | Flat 12% |
Frequently asked questions
Does Vermont have an inheritance tax?
No. Vermont has an estate tax but no inheritance tax. The estate tax on this page is owed by the estate itself and paid before anything is distributed; beneficiaries do not owe a separate Vermont tax on what they receive. (Only Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania still charge an inheritance tax.)
What is the Vermont estate tax exemption in 2026?
$5,000,000 per person for deaths in 2026. Estates at or below that amount owe no Vermont estate tax. The federal exemption is separate and much higher ($15,000,000 for 2026), so many estates owe Vermont estate tax and no federal estate tax.
What is the top Vermont estate tax rate?
16%. Vermont charges a single flat rate on the portion of the taxable estate above the exemption. See "How Vermont taxes an estate" above for how the rate is actually applied, and use the calculator for the exact figure on a given estate.
More on estate tax
For how federal estate tax interacts with Vermont's own rules, the 2026 federal exemption, and spousal portability, see the full estate tax guide.
How Vermont compares: for a single decedent dying in 2026, a $5,000,000 estate owes $0 in state estate tax in Vermont — one of 6 of the 13 jurisdictions that collect nothing at that size, and a $10,000,000 estate owes $800,000. Federal estate tax is $0 in both cases. The full comparison across all 12 estate-tax states and DC, with a downloadable CSV, is in Inheritance and estate tax by state, 2026.