There are three ways to file your income taxes:
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Online - Purchase software to prepare your taxes or, if eligible, use Free File
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Paper Returns - File a paper return by mail or in person
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Tax Professional - Use a tax professional or volunteer assistance to prepare and file your return
Vermont income taxes are imposed on individuals and entities (taxpayers) and vary based on the taxpayer's profitable income (taxable income). Separate taxes, such as income and property taxes, are assessed against each taxpayer meeting certain minimum criteria. Depending on your residency status and situation, you may need additional forms and schedules.
Choosing Commercial Software
The Vermont Department of Taxes does not offer a direct e-file option for individual taxpayers at this time. However, you may e-file through one of several software vendors that provide federal and Vermont forms. Fees will vary. Some vendors may offer free e-filing depending on your income.
Why E-File?
Electronic filing (E-filing) allows us to process your refund quickly than paper filing. This is because the software does the math for you and may catch errors, such as omitting a Social Security Number or a signature, which can slow processing time.
E-filing is a secure way to file. There is no evidence that e-filing contributes to identity theft and tax refund crime. Instead, it appears more likely that recent incidences of tax refund fraud are connected to well-publicized data breaches unrelated to the e-filing of taxes.
Choosing a Professional Tax Preparer
Many taxpayers choose to work with professional tax preparers. Neither the IRS nor the Vermont Department of Taxes endorses tax preparers, so you should carefully select a reputable professional who will meet your tax preparation needs. The IRS provides the following online searchable databases that can help you find a tax preparer in Vermont:
Paying Tax Owed on Your Income Tax Return
You may pay your income tax, estimated income tax, and any Vermont tax bill online using one of the following:
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ACH Debit (free)
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Credit card (3% nonrefundable fee)
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Personal check, cashier’s check, or money order
About ACH Debit
To pay with ACH Debit, you will need to enter the account number with your financial institution and the institution’s routing number into the secure online form. Double-check these numbers and match them precisely, as errors will result in processing delays, and additional interest and penalties may accrue. ACH debit payments are processed within one business day of submission.
What is “Timely” Payment?
Payment by check or money order
If you mail your check or money order, the payment is considered timely if the Department receives your payment within three (3) business days after the tax return's due date.
Payment by electronic funds transfer (EFT)
If payment is allowed or required by EFT, then the payment must be received by the Department up to six (6) days after the due date of the tax return.
Filing Paper Returns
If you do not prefer to e-file, you can file your return using a paper form and related schedules. Most forms are available as fillable PDFs, allowing you to type in the information. The Department's scanners read forms with typed characters more easily than handwritten forms, which helps us process your return quickly.
When you are ready to print the form, follow the instructions carefully to ensure our scanners can read and process your form. Printing the form in a different format slows processing.
Submit Your Return in Person
You may submit all forms, schedules, and payments by personal check, cashier’s check, or money order in person to:
Vermont Department of Taxes
133 State Street, 1st Floor
Montpelier, VT 05633-1401
Our office hours are 7:45 a.m. to 4:30 p.m., Monday through Friday. We are closed on State holidays.
Submit Your Return or Payment by Mail
If mailing your return requesting a refund, no balance due, or no payment, mail to:
Vermont Department of Taxes
P.O. Box 1881
Montpelier, VT 05601-1881
If mailing your return with a payment, send it to:
Vermont Department of Taxes
P.O. Box 1779
Montpelier, VT 05601-1779
Returns filed using a mail service, including the U.S. Postal Service or a commercial mail delivery service, are considered on time if we receive your return within three (3) business days after the due date.
If you cannot file electronically or download and print forms from our website, you may request that we mail paper forms and instructions to you.