Quick answer: up to 8.75% for 2026, since Vermont simply folds the gain into ordinary taxable income for a residential house sale. See the full cost picture in the Vermont probate real estate sale calculator.
No separate schedule for an ordinary house
Four brackets, topping out at 8.75%
Vermont's 2026 income tax runs four brackets: 3.35% up to roughly $45,400, 6.6% up to roughly $110,450, 7.6% up to roughly $229,050, and 8.75% above that for a single filer.
A narrow exclusion, not a general one
Vermont does offer a 40% capital gains exclusion, but specifically for qualifying business or farm sales — not for an ordinary inherited residence, so most estate house sales won't benefit from it.
A separate question from the state estate tax
Vermont's own state estate tax applies above a filing and payment threshold recently harmonized at $5 million (effective June 18, 2026) — a distinct calculation from the income tax on the sale's gain, and one that affects far fewer estates.
A local probate attorney can review your estate — many offer a free consultation.
The graduated bracket schedule applies identically whether the sale closes in any of Vermont's 14 counties.