Updated 2026-07-08
One flat rate, no brackets
Vermont's estate tax exemption is $5,000,000, and above that line Vermont does something almost no other estate-tax state does: it applies a single flat 16% rate rather than a graduated schedule that climbs with the size of the estate.
Working out what Vermont actually taxes
Only the amount above $5 million is taxed, at that flat 16% rate, so there is no bracket math involved once the taxable estate is known. The unlimited marital deduction and charitable bequests reduce the taxable estate first. Add both figures into the calculator to see the combined bill.
| Figure | Amount |
|---|---|
| Exemption | $5,000,000 |
| Top rate | 16% (flat) |
| Source | Vermont estate tax statute (flat threshold, not annually indexed) |
A third of the federal line
Vermont's $5 million exemption is a third of the federal figure, leaving a wide band of estates that owe the IRS nothing but can still face a Vermont bill. Lifetime gifting (see the gift tax calculator) and the step-up in basis (the step-up calculator) remain the standard levers for estates in that band. Confirm the current figure with the Vermont Department of Taxes.