Updated October 7, 2026. Quick answer: No. Vermont has no inheritance tax for a death in 2026. A January 2026 overview for the Vermont House Committee on Ways and Means says “Vermont had an inheritance tax from 1955 to 1971.” Vermont taxes estates instead.
Vermont inheritance tax at a glance
| Item | What the documents say |
|---|---|
| State inheritance tax | None |
| What the documents say | A January 2026 House Ways and Means overview says Vermont had an inheritance tax from 1955 to 1971; the Department of Taxes describes only an estate tax |
| State estate tax | Yes: a Vermont estate tax, assessed only on the gross estate value exceeding $5 million, per the Department of Taxes |
| Source | Vermont General Assembly; Vermont Department of Taxes; IRS Revenue Procedure 2025-32 |
What the Vermont documents say
The Estate Tax Overview given to the House Committee on Ways and Means on January 29, 2026 says “Vermont had an inheritance tax from 1955 to 1971.” It explains that an inheritance tax is paid by the beneficiaries and an estate tax by the estate.
The Department of Taxes’ Estate Tax page says “Vermont collects a tax on the transfer of a Vermont estate” of resident and nonresident deceased persons, and that the tax is “assessed only on the gross estate value exceeding $5 million”. The statute is “Chapter 190 : Estate and Gift Taxes” in Title 32.
What an heir in Vermont still faces
The federal estate tax is paid by the estate, with a 2026 basic exclusion amount of “$15,000,000 for calendar year 2026”. Vermont does levy an estate tax, paid by the estate and not by an heir: the Department of Taxes says it is “assessed only on the gross estate value exceeding $5 million”. CMG’s Vermont estate tax page covers it.
An heir’s basis under 26 U.S.C. 1014(a) is generally the value at “the date of the decedent’s death”. Inherited retirement money is an income tax question: see Vermont 401(k) and IRA withdrawals and the inherited IRA RMD calculator.
How current the Vermont documents are
Read on October 7, 2026: Estate Tax Overview (Patrick Titterton, House Committee on Ways and Means, January 29, 2026) (Vermont General Assembly, dated 2026); Estate Tax | Department of Taxes (Vermont Department of Taxes, dated 2026); Chapter 190: Estate and Gift Taxes (32 V.S.A.) (Vermont General Assembly, dated 2026).
What the documents do not say
- No Vermont document read says in so many words that the inheritance tax was repealed or that Vermont has none now. The overview says Vermont had one from 1955 to 1971, and the Department’s page and the statute chapter describe only an estate tax.
Common mistakes
- Taking no inheritance tax to mean no Vermont death tax; Vermont has an estate tax above $5 million, and the estate, not the heir, files for it.
Related: inheritance tax by state, Vermont estate tax, Vermont probate cost, and how Vermont taxes 401(k) and IRA withdrawals.
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Answer againSources
- Estate Tax Overview (Patrick Titterton, House Committee on Ways and Means, January 29, 2026): https://legislature.vermont.gov/Documents/2026/Workgroups/House%20Ways%20and%20Means/Estate%20Tax/W~Patrick%20Titterton~Estate%20Tax%20Overview~1-29-2026.pdf
- Estate Tax | Department of Taxes: https://tax.vermont.gov/individuals/estate-tax
- Chapter 190: Estate and Gift Taxes (32 V.S.A.): https://legislature.vermont.gov/statutes/chapter/32/190
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- 26 U.S.C. 1014 Basis of property acquired from a decedent (U.S. Code, 2023 edition, GovInfo): https://www.govinfo.gov/content/pkg/USCODE-2023-title26/html/USCODE-2023-title26-subtitleA-chap1-subchapO-partII-sec1014.htm
General information, not tax advice; the state agency or a tax professional can confirm anything consequential. Documents read October 7, 2026.