Taxed Items in Vermont
Vermont implements a 6% sales tax plus an additional 1% in some cities on various items, including:
- Toilet paper
- Soft drinks
The state is also known for its high property and income tax rates. The following are subject to tax in Vermont:
- Property taxes are high compared to other states.
- Income taxes are high with steep rates.
- Most retirement income is taxed.
- Some Social Security benefits are taxed.
- Vermont has an estate tax.
Tax Exemptions in Vermont and New Mexico
Despite the various taxes, there are items and benefits that are exempt in both Vermont and New Mexico:
- Many essentials are not taxed in Vermont.
- Food, food products, and beverages (excluding soft drinks) are exempt from Vermont sales tax.
- Clothing is tax-exempt in Vermont, with specific exceptions for accessories, protective equipment, and sports clothing.
In contrast, New Mexico offers the following tax benefits:
- Does not tax food.
- Provides veterans with benefits like tax exemptions, scholarships, and reduced licenses.