VT estate risk
Tax exposure in Vermont
State estate or inheritance tax rules and how they interact with federal thresholds.
Vermont imposes an estate tax on Vermont taxable estates above $5,000,000, at a rate of 16% on the excess.
At a glance
Key takeaways
- No Vermont estate tax applies to Vermont taxable estates under $5,000,000.
- The Vermont estate tax rate is 16% on the amount over $5,000,000.
- State estate tax thresholds are separate from the federal exemption and can be lower; confirm current exclusion and filing requirements.
Questions to consider
Questions to consider in Vermont
- Does the state impose an estate or inheritance tax?
- Who is exempt or receives preferential treatment?
- How does federal tax interact with state rules?
State overview
Vermont imposes an estate tax on Vermont taxable estates above $5,000,000, at a rate of 16% on the excess.
- No Vermont estate tax applies to Vermont taxable estates under $5,000,000.
- The Vermont estate tax rate is 16% on the amount over $5,000,000.
- State estate tax thresholds are separate from the federal exemption and can be lower; confirm current exclusion and filing requirements.
Sources
- https://legislature.vermont.gov/statutes/section/32/190/07442a
- https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
Background sources
- IRS inflation adjustments for tax year 2026
Use for the current federal estate tax basic exclusion amount.
- IRS Instructions for Form 706 (United States Estate Tax Return)
Defines filing requirements and federal estate tax framework.
- Tax Foundation - State estate and inheritance taxes
Current list of states with estate or inheritance taxes.
National sources provide baseline context; state statutes and court rules control in Vermont.
Optional next steps
Continue with related estate-risk context
Educational resources only. No forms and no legal advice.
Understand death-risk context for Vermont
LifeRiskIQ gives broader mortality context that can help frame when estate planning becomes more urgent.
Understand retirement-risk context for Vermont
RetirementRiskIQ explains how asset growth and longevity can increase estate complexity over time.
Review federal estate tax basics
IRS guidance on federal estate tax thresholds, filings, and definitions.