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Vermont flag2026Rank #43

Vermont Estate and Inheritance Tax

Estate tax only · exempt ~$5M · top 16%. See federal interaction, planning checklist, and heir estimates for Vermont.

By Sammy S. · Founder · AuthorUpdated for 2026

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Vermont estate and inheritance tax snapshot

Vermont levies a state estate tax with an exemption of about $5M and a top rate near 16%. No separate inheritance tax. Rank #43 on this site's death-tax friendliness score (#1 is most favorable).

Category

Estate tax only

Estate exemption

$5M

Top estate rate

16%

Inheritance tax

No

Friendliness rank

#43

vs federal exemption

State lower

Who should care about Vermont death taxes

Residents & domicile planners

People domiciled in Vermont (estate tax only) should model state rules alongside federal estate tax.

Nonresident property owners

Owning a home, land, or condo in Vermont can create situs-based filing even if you live elsewhere.

Executors & heirs

Heirs generally face no Vermont inheritance tax; executors may still need federal forms or other-state situs returns.

Compare Vermont with another state

Compare any two states

Estate tax, inheritance tax, exemptions, and federal interaction.

Vermont estate and inheritance tax examples

Estate rows use an illustrative top-rate sketch on amounts above the modeled exemption (actual brackets are progressive). This state has no inheritance tax—heir estimates are $0 at the state level.

$2M estate

Excess above $5M × top 16% (illustrative)

Amount
$2M
Result
$0 illustrative

$5M estate

Excess above $5M × top 16% (illustrative)

Amount
$5M
Result
$0 illustrative

$10M estate

Excess above $5M × top 16% (illustrative)

Amount
$10M
Result
~$800,000 illustrative

Estate tax in Vermont

Yes — exemption about $5M, top rate near 16%

Approx. exemption
$5M
Top estate rate
16%

Vermont’s estate exemption is $5M; no state inheritance tax. Most states do not offer federal-style portability of unused estate exemption to a surviving spouse.

Inheritance tax in Vermont

Vermont does not currently levy a state inheritance tax on beneficiaries. The inheritance tax calculator will show $0 for this state.

Federal estate tax and Vermont

There is no federal inheritance tax. Federal estate tax may still apply above about $15M per person in 2026 (top rate 40%), regardless of Vermont rules. Vermont's state exemption ($5M) is lower than the federal figure, so state tax can apply when federal does not.

Federal estate tax

About $15M exclusion · 40% top rate

Vermont estate tax

Exempt ~$5M · top 16%

Vermont inheritance tax

None

Vermont estate and inheritance tax checklist

Practical steps before you relocate, update beneficiary forms, or estimate what heirs might owe in Vermont.

Confirm domicile and situs

Your Vermont exposure depends on domicile for most intangibles and situs for real estate. Document where you live and where titled property sits.

Stack federal and state

Vermont's ~$5M exemption can bind before the ~$15M federal exclusion—model both layers.

Heir estimates are $0 here

Vermont does not levy inheritance tax. Use the calculator only to confirm $0, then check estate-tax states if assets sit elsewhere.

Review beneficiary designations

Retirement accounts and life insurance often bypass probate but can still matter for Vermont inheritance tax (where applicable) and federal estate inclusion.

Compare neighboring states

Open related Vermont comparisons below—small exemption gaps compound for mid-size estates and multi-home families.

Confirm $0 inheritance tax in Vermont

Vermont has no state inheritance tax. The calculator still opens pre-selected to Vermont so you can confirm a $0 heir estimate.

Open Vermont inheritance tax calculator

Related states by death-tax friendliness

All state rankings→Compare any two states→

Vermont estate and inheritance tax FAQs

Yes. Vermont’s modeled estate exemption is about $5M with a top rate near 16%.

No. Vermont does not impose a state inheritance tax on beneficiaries.

Federal estate tax uses an exemption of about $15M and a top rate of 40%. Vermont’s state exemption ($5M) is lower, so state tax can apply when federal does not.

At about $5M, the estate would still sit under Vermont’s modeled exemption of $5M—so this illustrative top-rate sketch shows $0 state estate tax on that amount (actual schedules are progressive; confirm with counsel).

Vermont ranks #43 (lower score is more heir/estate-friendly). Category: Estate tax only.

Real property is generally taxed where it sits (situs). A home located in Vermont can create Vermont estate or inheritance tax exposure even if the decedent was domiciled in another state. Intangibles usually follow domicile.

Domicile in Vermont can subject the taxable estate or heirs to Vermont rules (estate tax only). Confirm domicile change timing and any look-back or situs rules with counsel.

Vermont has no inheritance tax on heirs. Transfers to a surviving spouse are often sheltered under marital deduction rules, but confirm Vermont estate-tax forms and any QTIP elections with counsel.

Most estate-tax states, including Vermont in this model’s planning notes, do not mirror federal DSUE portability. Couples should not assume unused Vermont exemption automatically transfers to a surviving spouse.

Owners of mid-size estates near or above $5M, nonresidents with Vermont real estate, and couples who need state-specific credit-shelter planning.

Vermont has no inheritance tax; the calculator will show $0 for this state. Use Estate & Inheritance Tax by State for estate-tax exemptions elsewhere.

Confirm current Vermont revenue department figures and situs rules. Rankings are educational planning aids.