Exemption & rate verified against primary sources · Updated August 27, 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.
More on estate tax
For how federal estate tax works alongside state estate tax, the 2026 federal exemption, and spousal portability, see the full estate tax guide.