Calculate your federal and Vermont capital gains tax liability
Calculate Your
Vermont Capital Gains Tax
Vermont taxes capital gains held under 3 years as ordinary income up to 8.75%. Assets held 3+ years receive a 40% exclusion.
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Vermont Capital Gains Tax Highlights
Enter Your Investment Details
Calculate your capital gains tax for Vermont
📊 Enter your annual taxable income before including this capital gain. This determines your capital gains tax bracket.
📊 Choose your investment holding period
Calculator optimized for Vermont tax rates
Tax Calculation Results
How Vermont Taxes Capital Gains
Vermont taxes capital gains held under 3 years as ordinary income up to 8.75%. Assets held 3+ years receive a 40% exclusion.
Special Deduction Available
40% exclusion for assets held over 3 years, up to a lifetime max exclusion of $1,000,000.
2025 Tax Brackets
Vermont Tax Details
Tax Rate Structure
Vermont provides preferential treatment for certain types of capital gains.
Key Requirements
On qualifying gains
Vermont Tax Strategies
- • Maximize deductions by holding assets for required periods
- • Time gains to optimize deduction benefits
- • Consider staggering sales across tax years
• Consult with Vermont tax professional for complex situations
Related Tax Services
Real Estate in Vermont
Real estate capital gains in Vermont are subject to both federal and state tax considerations:
Vermont Real Estate Deductions
Vermont offers 40% exclusion for assets held over 3 years, up to a lifetime max exclusion of $1,000,000. for capital gains, including real estate transactions. This can significantly reduce your state tax liability.
Primary Residence
Federal Rules
Vermont State Rules
State deduction available
40% exclusion for assets held over 3 years, up to a lifetime max exclusion of $1,000,000.
Additional Requirements:
- • Follows federal IRC Section 121. The 40% state exclusion also applies to qualifying gains over the federal limit if held for 3+ years.
Investment Property
Tax Deferral Strategies
1031 Like-Kind Exchanges
Defer federal taxes on investment property exchanges
Transfer Costs
Transfer Tax
Available Exemptions:
- • Certain family transfers
- • Transfers to secure a debt.
Recording Fees
Additional Fees:
- • Uniform fees statewide.
Special Deductions & Notes:
- • The 40% exclusion applies to long-term gains from investment properties held 3+ years.
Investment & Tax Services
Property Tax Exemptions
Homestead
$0K
Maximum exemption
Vermont Real Estate Specifics
• Vermont has a significant Property Transfer Tax of 1.45%, paid by the buyer.
• The state uses an income-based property tax system for homesteads, where education property taxes are adjusted based on household income.
• Vermont does not conform to federal bonus depreciation.
Real Estate & Investment Services
Vermont Filing Requirements
Due Dates
Required Forms
- • Form IN-111
- • Capital gains schedule
- • Federal Form 8949 & Schedule D
Payment Options
- • Online payment portal
- • Electronic funds transfer
- • Check or money order
Tax Professional Services
Compare Vermont to Other States
Tax Calculation Results
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