Tax-Exempt Nonprofit Organizations

Nonprofit organizations must file returns and pay—or collect and remit taxes—for some tax types in Vermont. Nonprofits should not assume that just because they have obtained “tax-exempt” status at the federal level through the IRS, they do not need to pay or remit any taxes in Vermont.

If you operate or manage a nonprofit, you should learn which Vermont taxes apply to you.

Eligible Tax-Exempt Nonprofits

Vermont follows the federal IRS designations for tax-exempt nonprofit organizations found in federal law at 26 U.S.C. Subchapter F.  Some of these exempt nonprofits must pay Vermont taxes or collect and remit Vermont taxes under certain circumstances, which are described below.

Many federally exempt nonprofits are 501(c)(3), organized for exempt purposes that include charitable, religious, educational, scientific, literary, etc. There are other types of exempt nonprofits, such as `501(c)(4), social welfare organizations; 501(c)(5), labor and agricultural organizations; 501(c)(8) and 501(c)(10), fraternal societies; 501(c)(19), Veterans organizations; and more. Please review your IRS determination letter to be certain of the designation assigned to your nonprofit.

Exemptions by Tax Type

Below you will find helpful tools and a list of tax types to help you understand your tax responsibilities.

How to Register for a Vermont Business Tax Account and License
Sales & Use Tax - Purchases and Sales
Meals & Rooms Tax - Charges for Meals and Rooms 
Corporate Income Tax – Unrelated Business Income
Property Tax - Public, Pious, Or Charitable Use Exemption

Contact Us

Commissioner Kaj Samsom
133 State Street | Montpelier, VT 05633
(802) 828-2505

Taxpayer Assistance Window
Office Hours: 7:45 a.m. - 4:30 p.m. Monday - Friday

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