LAST UPDATED ON AUGUST 17, 2023 AT 5:41 PM
This page has been developed to help Vermonters and others understand how the severe July flooding may impact taxes. It will be updated as new information becomes available. For up-to-date information on how the State of Vermont is responding to the July 2023 flood, and links to relevant resources, please visit the State of Vermont’s Flood Resources webpage.
How to Get in Touch with the Department of Taxes
The Tax Department building located at 133 State Street is closed to the public due to severe flooding in Montpelier. Nearly all of the Department’s critical functions are continuing uninterrupted, including processing electronic payments, tax returns and refunds, and taking phone calls and emails from taxpayers. We are processing mail, including paper checks and tax returns, at an alternate facility. Taxpayers may experience a delay in the processing of paper mail and are encouraged to file and pay electronically.
Vermont Tax Deadlines Extended to November 15, 2023, for Taxpayers Impacted by Flooding
Taxpayers impacted by flooding and unable to meet Vermont tax deadlines occurring between July 7, 2023, and November 15, 2023, will now have until November 15, 2023, to file and pay taxes. Due dates between July 7, 2023, and November 15, 2023, will automatically be extended for taxpayers impacted by the flooding for:
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Corporate and business income tax, including estimated payments
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Sales and use tax
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Meals and rooms tax
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Payroll withholding tax, including the Health Care Contribution Assessment
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Estimated personal income and fiduciary income tax payments, originally due September 15, 2023
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Filing of 2022 Vermont personal income taxes with a valid federal or Vermont extension
Those with Vermont tax obligations beyond what is listed above, due between July 7 and November 15, 2023, can request extensions by contacting the department’s Taxpayer Services Division for assistance.
Taxpayers not impacted by the flood are expected to file and pay taxes by their original due dates. Note that in some cases, the department may ask for proof of hardship to grant extensions.
See the press release for more information.
IRS Tax Deadlines and Certain Payments for Vermonters Extended to November 15, 2023
In response to the national disaster declaration for Vermont, the IRS has extended the deadlines to file federal returns and pay certain federal taxes for Vermont residents and businesses impacted by the flood until November 15, 2023.
Please refer to the IRS guidance for details about impacted federal deadlines.
Because this federal tax relief is automatic for Vermont households and businesses (based on your Vermont address), you do not need to contact the IRS or prove hardship to receive it; only contact them if you receive a penalty notice.
Charitable Contributions
Vermont taxpayers making donations to charitable organizations, including organizations working on flood relief, may be eligible for the Vermont Charitable Tax Credit. Vermont has a five percent (5%) personal income tax credit for eligible charitable contributions up to $20,000 available to all Vermont income tax filers, regardless of whether you itemize deductions. You can claim this credit on your 2023 Vermont personal income taxes when you file next year. When donating to a charitable organization, remember to ask the organization if your donation is tax deductible and keep a receipt.
Additional Resources
State of Vermont Resources
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The Business Emergency Gap Assistance Program (BEGAP) is now open and accepting applications. This $20 million grant program is for businesses and nonprofits that suffered physical damages from flooding dating back to July 7, 2023. Applicants must intend on restoring, reopening, and bringing their employees back to work as soon as possible and will utilize these grant funds for that purpose. More information on the program is available at the ACCD Storm Recovery Resource Center, including a video recording of a webinar on the program and frequently asked questions.
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Flood Resources - For up-to-date information on how the State of Vermont is responding to the July 2023 flood, and links to resources, please visit the State of Vermont’s website.
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Individual and Business Income Taxes After a Disaster - For information regarding deducting disaster and casualty losses and other related topics for businesses and employees, visit the Department of Taxes’ After a Disaster and Your Individual and Business Income Taxes webpage.
Information for Towns
Internal Revenue Service (IRS) Resources