At a glance
| State estate tax | Yes — exemption $5,000,00032 V.S.A. § 7442a (imposition; $5,000,000 exclusion; 16% flat rate on the excess) · 2026 deaths |
|---|---|
| Estate top rate | 16%32 V.S.A. § 7442a (imposition; $5,000,000 exclusion; 16% flat rate on the excess) · 2026 deaths |
| 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 — see the full Vermont transfer-on-death deed guide for the requirements, revocation, and alternatives. 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
- Vermont small-estate procedure — the state’s simplified transfer or administration route, eligibility rules, and claimant responsibilities.
- ← Back to the 51-jurisdiction comparison
Sources & methodology
Methodology & sources
Estate and inheritance tax figures reviewed by Sakineh Majd, J.D. — Maine Bar #004999 · 2026-07-24. The review memo explains its scope and source checks.
Tax figures include citations and source effective dates. Unconfirmed figures direct readers to the state. Aggregator roundups are not sources. See our editorial standards.
General information, not legal or tax advice. Residency, property location, and title can change the result. A professional licensed in Vermont can assess your situation.
Last verified July 18, 2026.