Updated October 5, 2026. Quick answer: No. Vermont has no gift tax for a gift made in 2026. Title 32, Chapter 190 of the Vermont Statutes, Estate and Gift Taxes, shows its gift tax subchapter as “§§ 7411-7418. Repealed. 1979, No. 140 (Adj. Sess.), § 2”. Vermont does tax estates, and the estate tax counts gifts made within two years of death. The federal annual exclusion is $19,000 per recipient for 2026.
Putting a loan in writing? The interest limit, the signing rules and the time limit to sue, from the state’s own statutes: Vermont promissory note.
Vermont gift tax at a glance
| Item | What the documents say |
|---|---|
| State gift tax | None |
| What the documents say | 32 V.S.A. sections 7411 to 7418, the gift tax subchapter, were repealed in 1979 |
| State estate or inheritance tax | Yes: a Vermont estate tax on estates over $5 million (Form EST-191) |
| Gifts made close to death | The estate tax base includes taxable gifts made within two years of death |
| Federal annual exclusion, 2026 | $19,000 per recipient |
| Federal basic exclusion amount, 2026 | $15,000,000 |
| Source | Vermont General Assembly (Office of Legislative Counsel); Vermont Department of Taxes; IRS Revenue Procedure 2025-32 |
What the Vermont documents say
The chapter’s index lists “Subchapter 002 : GIFT TAX”, with every section in it shown as repealed. The repeal is by 1979 session law, so this page does not describe a tax that has applied to recent gifts.
Estates, inheritances and gifts near death in Vermont
The Department of Taxes says “Vermont collects a tax on the transfer of a Vermont estate”, and that the estate tax is assessed on the value of the gross estate “exceeding $5 million plus taxable gifts made within two years of death”. So a gift made in 2026 owes no gift tax, but a large one made within two years of death can count in the estate tax base.
What applies to a gift from a Vermont resident
Federal gift tax is separate and applies wherever you live. The IRS says gifts “not more than the annual exclusion for the calendar year” are generally not taxable gifts, and Revenue Procedure 2025-32 sets the 2026 annual exclusion at “the first $19,000 of gifts to any person”. The same procedure puts the basic exclusion amount at “$15,000,000 for calendar year 2026”. The IRS adds that “The donor is generally responsible for paying the gift tax”.
An illustration: a $50,000 gift to one child in 2026 is $31,000 above the federal annual exclusion, and Vermont adds no gift tax of its own on top of that. CMG’s gift tax limit and Form 709 who must file pages explain the federal side, and how Vermont taxes 401(k) and IRA withdrawals covers a gift of retirement money.
What the documents do not say
- The documents read do not state whether Vermont levies an inheritance tax.
Common mistakes
- Treating the 1979 repeal as the end of any Vermont consequence for a large gift made close to death; taxable gifts within two years of death count in the estate tax base.
- Assuming the state answer settles the federal one, or the answer for a gift of property located in another state.
Related: the federal gift tax limit, gift tax by state, Vermont estate tax, and Vermont probate cost.
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Answer againSources
- Title 32, Chapter 190: Estate and Gift Taxes: https://legislature.vermont.gov/statutes/chapter/32/190
- Estate Tax: https://tax.vermont.gov/individuals/estate-tax
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- Frequently asked questions on gift taxes (Internal Revenue Service): https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes
Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.