State estate tax
Vermont estate tax in 2026
Checked against state sources 2026-10-21 · Gregory Garone, CEPA®
Short answer: Yes. Vermont taxes the part of an estate above $5 million at a flat 16%. Taxable gifts made within two years of death are added back.
Vermont at a glance
| Tax type | Estate tax |
|---|---|
| Estate tax exemption, 2026 deaths | $5,000,000 |
| Top rate | 16% |
| Portability to a surviving spouse | No |
How the Vermont estate tax works
- The $5 million exclusion has applied since January 1, 2021 and is not indexed for inflation.
- A return is required when the gross estate plus taxable gifts made within two years of death exceeds $5 million, or when a federal Form 706 is required.
- Act 164 of 2026 aligned the filing threshold with the $5 million payment threshold, effective June 18, 2026.
Planning points
- Gifts made more than two years before death reduce the Vermont estate.
- Without portability, couples with combined estates above $5 million generally need a trust at the first death.
Common questions
Does Vermont have an estate tax in 2026?
Yes. Vermont taxes the part of an estate above $5 million at a flat 16%. Taxable gifts made within two years of death are added back.
What is the Vermont estate tax rate?
A flat 16% on the taxable estate above the $5 million exclusion.
Do gifts count toward the Vermont estate?
Taxable gifts made within two years of death are added back. Earlier gifts are not.
Sources and limitations
Other states
Planning around Vermont tax?
Tell us what you own, where, and who it is meant for. Greg will reply personally.
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