Local option tax is a way for municipalities in Vermont to raise additional revenue. A municipality may vote to levy the following 1% local option taxes in addition to state business taxes. Please note: Local option tax does not apply to the sale or rental of motor vehicles which are subject to the motor vehicle purchase and use tax.
Local Option Sales Tax: 6% sales tax + 1% = 7% total tax
Local Option Meals Tax: 9% meals tax + 1% = 10% total tax
Local Option Alcoholic Beverage Tax: 10% alcohol tax + 1% = 11% total tax
Local Option Rooms Tax: 9% rooms tax + 1% = 10% total tax
Local Option Tax Finder
Search for a specific address or town to determine if a Local Option Tax is levied. Open the local option tax finder in new window.
Municipalities that have a 1% Local Option Sales Tax
| Municipality | Effective Date |
|---|---|
| Barre City | Oct. 2022 (Effective beginning 10/1/2022) |
| Brandon | Oct. 2016 |
| Brattleboro | July 2019 |
| Burlington | July 2006 |
| City of Essex Junction | Oct. 2022 (Effective beginning 10/1/2022) |
| Colchester | Oct. 2015 |
| Dover | July 2007 |
| Killington | Oct. 2008 (Rescinded as of 7/1/2018) |
| Manchester | April 1999 |
| Middlebury | Oct. 2008 |
| Montgomery | Oct. 2022 (Effective beginning 10/1/2022) |
| Rutland Town | April 2009 |
| St. Albans City | Oct. 2020 |
| St. Albans Town | July 2014 |
| South Burlington | Oct. 2007 |
| Stratton | July 2004 |
| Williston | July 2003 |
| Wilmington | July 2012 |
| Winhall | July 2010 |
| Winooski | July 2019 |
Municipalities that have a 1% Local Option Meals and Rooms Tax and Alcoholic Beverage Tax
| Municipality | Effective Date |
|---|---|
| Brandon | Oct. 2016 |
| Brattleboro | April 2007 |
| Barre City | Oct. 2018 |
| City of Essex Junction | Oct. 2022 (Effective beginning 10/1/2022) |
| Colchester | Oct. 2015 |
| Dover | July 2007 |
| Hartford1 | Oct. 2017 |
| Killington | Oct. 2008 |
| Manchester | April 2008 |
| Middlebury | Oct. 2008 |
| Montgomery | Oct. 2022 (Effective beginning 10/1/2022) |
| Montpelier | Oct. 2016 |
| Rutland Town | April 2009 |
| St. Albans City | Oct. 2020 |
| St. Albans Town | July 2014 |
| South Burlington | Oct. 2007 |
| Stowe | July 2006 |
| Stratton | July 2004 |
| Williston | July 2003 |
| Wilmington | July 2012 |
| Winhall | July 2010 |
| Winooski | July 2019 |
| Woodstock | July 2015 |
1The Town of Hartford includes Quechee, White River Junction, West Hartford, and Wilder
Municipalities that have a 1% Local Option Rooms Tax
| Municipality | Effective Date |
|---|---|
| Elmore | July 2021 |
Please note: The City of Burlington and the City of Rutland administer and collect their own local meals, entertainment, lodging, or alcoholic beverage taxes. If you have a business in Burlington or Rutland City, please contact the appropriate city for information on how to pay and remit the tax.
Contact the City of Burlington: (802) 865-7000
Contact the City of Rutland: (802) 773-1800
How to Calculate and Remit Local Option Tax
As of November 2022, the Vermont Department of Taxes will only accept returns from businesses who collect and report Local Option Tax if they are filed electronically.
Local option tax is calculated as 1% of the taxable (net) sales for each town. A transaction is subject to local option tax if it is subject to the Vermont sales, meals, rooms, or alcoholic beverage tax. Local option tax is “destination-based.” In other words, the tax is collected based on the location where the buyer takes possession of the item or where it is delivered.
All vendors, including out of state vendors, authorized to collect taxes in Vermont are required to collect and remit to the Vermont Department of Taxes all applicable local option taxes for sales that occur in participating municipalities. No additional registration with the Department is necessary.
Although local option tax is levied by the municipality, the Department collects and administers the tax. Vendors who collect this tax file and remit it to the Department along with their electronically filed state taxes.
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Form SUT-451, Sales and Use Tax Return
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Form MRT-441, Meals and Rooms Tax Return
Be sure to charge, collect, and remit local option tax for applicable purchases in the municipality where the buyer is consuming or taking possession of the item or where the item is being delivered.