Vermont sales tax for contractors

State sales tax rate

6% state sales/use tax (some towns add 1% local option); no 2026-27 change found on page

Source: https://tax.vermont.gov/business/sales-and-use-tax. Last verified 2026-11-02.

How contractors are taxed

Contractor is consumer of materials incorporated into real property: pays tax at purchase, charges none on the service. Retailer/manufacturer that only occasionally installs may elect retailer treatment on Form SUT-459 (5-yr binding); >50%-installers are treated as contractors

Source: https://tax.vermont.gov/business/industry/contractors. Last verified 2026-11-02.

Certificates and forms

Form S-3 (exemption certificate, contractor buys exempt when no tax charged to customer); Form S-3C (contractor certificate for exempt-owner projects: state/US, 501(c)(3), qualified development corp); SUT-459 retailer election

Source: https://tax.vermont.gov/business/industry/contractors. Last verified 2026-11-02.

New-employer unemployment tax

2026 wage base $15,400 (labor.vermont.gov/node/5551); most new employers pay 1% from 7/1/2026 (out-of-state construction corps instead get industry average); 2027 not published

Source: https://labor.vermont.gov/unemployment-insurance/ui-employers/unemployment-tax-rates. Last verified 2026-11-02.

What this page does not cover

Local taxes, special districts, and any detail we could not confirm on an official page are left out on purpose. Confirm current rates, forms and due dates with the state agency and your CPA.

How BossHours helps

BossHours keeps your quotes, invoices and job records in one place so your accountant has what they need at filing time. It does not give tax or legal advice.