Vermont Estate Tax: Threshold & Rate Guide

A genuinely simple formula today — but it wasn't always this way, and a real 2026 change is worth knowing about.

32 V.S.A. §7442a, §7444

Quick answer: exemption of $5,000,000, then a flat 16% on everything above it — no tiers, no cliff. Run your own numbers in the Vermont estate tax calculator.

The entire rate schedule, straight from the statute

This flat structure is relatively recent

Before 2016, Vermont computed its estate tax using an old federal state death tax credit table — the same style of mechanism several other states, including Rhode Island and Maryland, still use today. Legislation passed that year, titled "An Act Relating to Creation of a Flat Rate Vermont Estate Tax," replaced that older system entirely with the simple exemption-plus-flat-rate structure now in effect.

A genuine 2026 change to the filing threshold

For years, Vermont's filing threshold sat below its payment threshold: an executor had to file a return whenever the federal gross estate plus taxable gifts made within two years of death exceeded $2,750,000, even though tax was only actually owed above $5,000,000. In 2026, the Vermont Legislature raised the filing threshold to match the $5,000,000 payment threshold, effective June 18, 2026 — so older sources describing a $2,750,000 filing trigger are now out of date.

Out-of-state property reduces the Vermont share

For a Vermont resident who also owns property outside the state, the computed tax is multiplied by a fraction: the numerator is Vermont-situs property plus Vermont-situs gifts made within two years of death, and the denominator is the federal gross estate plus those same gifts. Nonresidents with Vermont-situated real estate or tangible property, like a camp or a plane based in Vermont, can also owe this tax even if most of their estate sits elsewhere.

Facing probate in Vermont?

A local probate attorney can review your estate — many offer a free consultation.

Talk to a Vermont attorney

Form EST-191 is due 9 months after death. A 6-month filing extension is available, but it only extends the paperwork deadline — the tax itself is still due at the original 9-month mark.

Threshold & rate — frequently asked questions

Has Vermont's estate tax always been a flat rate?

No — before 2016, Vermont computed its estate tax using an old federal state death tax credit table, similar to the mechanism several other states still use. Legislation passed in 2016 replaced that system with the simple flat exemption and flat rate in effect today.

What changed about Vermont's filing threshold in 2026?

The Vermont Legislature raised the estate tax filing threshold to $5 million to match the payment threshold, effective June 18, 2026. Before that, the filing threshold was lower and based on a separate $2,750,000 test tied to federal gross estate plus recent taxable gifts.

How does apportionment work for a Vermont resident who owns out-of-state property?

The computed tax is multiplied by a fraction: the numerator is Vermont-situs property plus Vermont-situs gifts made within two years of death, and the denominator is the federal gross estate plus those same gifts.

When is the Vermont estate tax return due?

9 months after death. A 6-month extension is available for filing the return itself, but the tax payment is still due at the original 9-month mark regardless of any filing extension.

This page provides general guidance only and is not legal or tax advice. Based on 32 V.S.A. §7442a, §7444. Confirm current figures with the Vermont Department of Taxes or a licensed attorney before acting.