At a glance
| State estate tax | Yes — exemption $5,000,00032 V.S.A. § 7442a · 2026 |
|---|---|
| Estate top rate | 16% (flat)32 V.S.A. § 7442a · 2026 |
| Inheritance tax | No |
| Small-estate ceiling | $45,00014 V.S.A. § 1901 · current |
| TOD deed for real estate | Not available27 V.S.A. § 651 (enhanced life-estate deed only — no conventional TOD deed) · 2020 |
| Community-property state | No |
Estate tax
Vermont imposes an estate tax with a flat $5,000,000 exclusion (32 V.S.A. § 7442a); a Vermont taxable estate under $5,000,000 owes nothing. The $5,000,000 level has applied to deaths in 2021 and after.
The rate is a flat 16% of the amount above $5,000,000 — there are no graduated brackets. The computed tax is then apportioned to Vermont-situs property, and values are as finally determined for federal estate-tax purposes.
Vermont provides no portability of the exclusion between spouses. A nonresident's estate is taxed only on Vermont real and tangible property. Note a filing can be required at a lower point than the tax: the Department of Taxes requires Form EST-191 when the federal gross estate plus gifts made within two years of death exceeds $4,250,000, and those two-year gifts are added back into the base.
Inheritance tax
Vermont has no inheritance tax — beneficiaries are not taxed on what they receive by the state. Vermont imposes no inheritance tax; its only death-transfer levy is the estate tax under 32 V.S.A. chapter 190.
Probate basics
A small-estate proceeding under 14 V.S.A. § 1901 is available when the estate is not more than $45,000 and consists entirely of personal property. The fiduciary files a petition, inventory, and debts affidavit, and non-consenting interested persons get 14 days to object.
Vermont is a common-law (separate-property) state for ownership between spouses. A transfer-on-death deed for real estate is Not available 27 V.S.A. § 651 (enhanced life-estate deed only — no conventional TOD deed) · 2020. The probate deadlines for this state — filing the will, the creditor-claim window, the inventory — are cited in the Executor & Heir’s Guide.
State-specific quirks
Flat 16% over a flat $5M — not graduated
Vermont's estate tax has no brackets: everything under $5,000,000 is exempt, and the amount above is taxed at a single 16% rate (32 V.S.A. § 7442a). The $5,000,000 is a cliff-style exclusion applied per estate.
No portability between spouses
Vermont's $5,000,000 exclusion cannot be transferred to a surviving spouse. A married couple that fails to use the first spouse's exclusion (through credit-shelter planning) permanently loses it — § 7442a contains no portability provision.
You may have to file below the $5M tax line
Vermont requires an estate-tax filing (Form EST-191) when the federal gross estate plus gifts made within two years of death exceeds $4,250,000 — below the $5,000,000 point where tax is actually assessed — and those two-year gifts are added back into the base. Vermont also has no conventional transfer-on-death deed; the closest tool is a Lady Bird (enhanced life-estate) deed.
Where to read next
- the federal lifetime exemption — how the far larger federal exclusion works — and why a state tax can still apply below it
- funding a revocable trust — the most common way to keep property out of probate entirely
- the ILIT cluster — keeping a life-insurance death benefit out of a taxable estate
- the Executor & Heir's Guide — the probate deadlines for this state, cited to the statute
- ← Back to the 51-jurisdiction comparison
Sources & methodology
Methodology & sources
Every tax figure on this page links to the primary source it was verified against — a Vermont statute or department-of-revenue page — with that source’s own effective date. Aggregator round-ups are never used as a source. State death and probate law changes every legislative session; this page carries the date it was last re-verified, and any figure that could not be confirmed from a primary source is flagged for you to check with the state rather than guessed. See our editorial standards.
This page is educational and is not legal or tax advice. Whether a death tax applies turns on residency, where property sits, and how title is held — details a general page cannot resolve. Confirm your own situation with a professional licensed in Vermont.
Last verified July 20, 2026.