Vermont Estate Tax Calculator (2026): Estimate What the Estate Owes
Figures verified October 17, 2026 against Vermont Department of Taxes · Update log
Short answer
Yes. For deaths in 2026, Vermont taxes estates over $5,000,000 at 16% flat on the amount over the exemption. Vermont taxes the amount over $5 million at a flat 16% and adds back gifts made in the 2 years before death. The executor files EST-191 and pays from the estate, due 9 months after the date of death. Federal estate tax applies only above $15 million, so most estates that owe Vermont tax owe nothing federally.
Vermont estate tax calculator
Enter values at the date of death. Rough numbers are fine; type 450000, 450k or 2.5m. Leave anything that does not apply blank.
How the Vermont estate tax is calculated
The starting point is the taxable estate: everything the person owned at death (the gross estate), minus debts and mortgages, funeral and administration costs, and what passes to a surviving spouse or to charity. The house, bank and brokerage accounts, retirement accounts, business interests and life insurance the person owned all count, including accounts that pass straight to a named beneficiary.
Vermont charges a flat 16% on the part of the taxable estate over $5,000,000, with gifts made in the 2 years before death added back first.
Vermont rates for 2026 deaths
| Taxable estate over | Up to | Rate on that slice |
|---|---|---|
| $5,000,000 | and above | 16% |
Worked example: a $6.3 million Vermont estate
A Stowe widower dies with a $1.2 million house, $3 million of investments, a $1.5 million IRA and a $600,000 share of a family business. Debts are $100,000 and costs $200,000. A year before death he gave $200,000 above the annual exclusion to his son.
Step by step
| Everything the person owned (gross estate) | $6,300,000 |
| Debts and mortgages | − $100,000 |
| Funeral and administration costs | − $200,000 |
| Taxable estate | $6,000,000 |
| Lifetime gifts added back | + $200,000 |
| Estate taxed by the state | $6,200,000 |
| State exemption (2026 deaths) | $5,000,000 |
| Estimated state estate tax | $192,000 |
Bracket by bracket
Vermont rates applied to the amount over the exemption. Amounts are shown in estate dollars.
| Slice of the estate | Amount | Rate | Tax |
|---|---|---|---|
| $5,000,000 to $6,200,000 | $1,200,000 | 16% | $192,000 |
| Total from the brackets | $192,000 | ||
Result: Vermont estate tax of $192,000, or 3.1% of the $6,200,000 taxable estate (with gifts added back). No federal estate tax, because the estate is under $15 million. Vermont requires Form EST-191 when the gross estate plus taxable gifts made within 2 years of death is over $5,000,000 (the filing threshold since June 18, 2026), or a federal return is required.
Ways the number can change
- Gifts in the last 2 years. Taxable gifts made within 2 years of death are added to the Vermont taxable estate (32 V.S.A. §7402(14)(C)).
- Property outside Vermont. The tax is multiplied by the share of the estate with a Vermont situs, so a resident's real estate in another state lowers it (32 V.S.A. §7442a(b)).
- New filing threshold. Since June 18, 2026 a Vermont return is required only when the gross estate plus gifts in the last 2 years is over $5,000,000 (or a federal return is required).
- Values at the date of death. The return uses appraised fair market values on the date of death. A house or business valued differently from your estimate moves the tax, at the Vermont rate on that slice.
What the executor files, and when
- Vermont EST-191: due 9 months after the date of death. Vermont requires Form EST-191 when the gross estate plus taxable gifts made within 2 years of death is over $5,000,000 (the filing threshold since June 18, 2026), or a federal return is required.
- File Form EST-191 with the Vermont Department of Taxes. Form EST-195, filed by the due date, extends the time to file by 6 months, not the time to pay. Vermont Department of Taxes.
- Federal Form 706: only if the estate is over $15 million, or to elect portability for a surviving spouse. Due 9 months after the date of death (an automatic 6-month extension to file is available on Form 4768).
Optional: get help filing
Get a flat-fee quote to file the Vermont estate tax return
Tell us a little about the estate and a CPA or Enrolled Agent who prepares Vermont EST-191 returns will reply with a fixed price. Free, and no obligation.
Frequently asked questions
How much is Vermont estate tax on a $6 million estate?
About $160,000 on a $6,000,000 taxable estate, and about $480,000 on $8,000,000. That assumes a Vermont resident with everything in Vermont and no lifetime gifts. The taxable estate is what is left after debts, funeral and administration costs, and what goes to a spouse or charity.
Does Vermont have an inheritance tax?
No. Vermont has an estate tax, paid out of the estate before heirs receive their shares, and no inheritance tax. Heirs do not pay Vermont tax on what they receive.
Who files the Vermont estate tax return, and when is it due?
The executor (personal representative) files EST-191, due 9 months after the date of death. File Form EST-191 with the Vermont Department of Taxes. Form EST-195, filed by the due date, extends the time to file by 6 months, not the time to pay.
Does the estate have to file if it owes no Vermont tax?
Vermont requires Form EST-191 when the gross estate plus taxable gifts made within 2 years of death is over $5,000,000 (the filing threshold since June 18, 2026), or a federal return is required.
How much is Vermont estate tax on a $6 million estate?
16% of the amount over $5,000,000, so about $160,000 on a $6,000,000 taxable estate with no gifts in the last 2 years.
Are life insurance and retirement accounts part of the estate?
Yes. Retirement accounts count at their full balance, and life insurance counts if the person owned the policy or it paid the estate, even when a named beneficiary receives the money. Income tax on withdrawals from an inherited IRA is separate and is paid by the heir.
Will the estate owe federal estate tax as well?
Only if it is over $15,000,000 for 2026 deaths. Vermont's exemption is $5,000,000, so many estates owe Vermont tax and no federal tax. The Vermont tax paid is deductible on the federal return.
How accurate is this calculator?
It uses Vermont's official rate table for 2026 deaths. It assumes the person lived in Vermont with everything located there, and it uses the values you enter. The real return uses appraised values at the date of death and can include items it does not model, such as property in other states, state-only elections and credits for tax paid to other states.
Sources
- 1.Vermont Department of Taxes: estate taxtax.vermont.gov
- 2.32 V.S.A. §7442a (rate and apportionment)legislature.vermont.gov
- 3.32 V.S.A. §7402 (Vermont taxable estate, 2-year gifts)legislature.vermont.gov
- 4.Vermont Department of Taxestax.vermont.gov
- 5.IRS: Estate Taxirs.gov
- 6.IRS: Instructions for Form 706irs.gov
This information is provided for educational purposes only and should not be considered legal or tax advice. Consult a qualified tax professional for guidance specific to your situation.