Free help from licensed tax pros. Not the IRS.Licensed tax pros in all 50 statesEspañol

Tax help in Vermont

Vermont tax rules, in plain words.

A farmer by a covered bridge in fall
Updated October 8, 20265 sourcesFact checked
The short answer

State tax debt in Vermont is collected by Vermont Department of Taxes, not the IRS. Debts are usually expected to be paid in one to two years.

Key facts for Vermont

State income tax
3.35% to 8.75% for 2025. Source
Payment plan
Debts are usually expected to be paid in one to two years. Source
Offer program
Yes. Use Form OIC-671. You cannot get one if you had one in the past five years. Source
Collection tools
Vermont can file liens, garnish wages and levy bank accounts. Source
License risk
Business and professional licenses can be revoked. Source
Public records
Vermont posts a Top 100 Delinquent Taxpayer Report. Source

Two debts, two sets of rules

  • The IRS collects federal taxes, with its own letters and plans.
  • Vermont Department of Taxes collects Vermont taxes, with its own rules.
  • A plan with the IRS does not stop the state from collecting, and the other way around.

Common questions in Vermont

Who collects state taxes in Vermont?

The Vermont Department of Taxes. It is separate from the IRS. A plan with one does not stop the other from collecting.

Can I get a payment plan for Vermont taxes?

Debts are usually expected to be paid in one to two years.

Does Vermont take offers in compromise?

Yes. Use Form OIC-671. You cannot get one if you had one in the past five years.

Can Vermont suspend a license for tax debt?

Business and professional licenses can be revoked.

Can TaxTruce help with Vermont tax debt?

Yes. TaxTruce is a free service that connects you with tax resolution firms that work in Vermont. Answer a few questions, confirm your phone with a text code, and a firm reviews your situation and calls you back. We are not the IRS or a state agency.

Results depend on your situation. Not every case qualifies.

Facts on this page come from Vermont Department of Taxes and are linked. Rules change. Check with Vermont Department of Taxes or a licensed tax pro before you act. We are not affiliated with Vermont Department of Taxes.

Run the numbers with our free tax tools, like the penalty and payment plan math.

See your options

A few questions. A tax pro calls you back.

Free tools: penalty calculator, 10 year clock, IRS offer data

Free to use. Not the IRS or any government agency. Results depend on your situation. Not every case qualifies.