Key figures
Vermont receivables
2026, with sources
SaaS became taxable in 2024
Vermont’s sales tax is 6%, and since July 1, 2024 it applies to all prewritten computer software, whether bought on media, downloaded or accessed remotely over the internet. From 2015 until June 30, 2024 remotely accessed software that wasn’t downloaded was exempt, which is why older guidance and many billing setups still treat Vermont as a no-tax state for SaaS.
Custom software built for a specific customer is not taxable, and a reasonable, separately stated charge for modifying prewritten software is exempt; the software itself stays taxable. Municipalities that adopt a local option tax add 1%, for 7% in total, and sellers with local option sales must file electronically.
When to register
Out-of-state vendors must register and collect once they made at least $100,000 of sales or 200 individual transactions into Vermont during any preceding twelve-month period. The window rolls, so a company can cross it mid-year, and either test is enough.
A SaaS company that registered nowhere in New England before 2024 because Vermont exempted SaaS and its other customers were in non-taxing states should revisit that: a product with 300 Vermont subscribers has been over the transaction test since the exemption ended.
Customer credits
Unused customer credits and uncashed refunds are reported to the State Treasurer as unclaimed property by May 1.
The federal baseline
This page covers what Vermont adds. The federal rules underneath it apply here too.
Common questions
Is SaaS taxable in Vermont?
Yes, since July 1, 2024. Vermont had exempted remotely accessed software since 2015, but Act 183 of 2024 applied sales tax to all prewritten software regardless of how it is delivered. Custom software, and separately stated charges for customizing prewritten software, remain exempt.
When does an out-of-state SaaS company have to register?
Either test, in any preceding twelve-month period: $100,000 of sales into Vermont or 200 individual transactions. A self-serve product with 250 Vermont customers crosses the transaction test even at $20 a month.
Receivables next door
- MAMassachusetts receivablesMassachusetts taxes most SaaS as prewritten software at 6.25%, with no local rates. Remote sellers register once Massachusetts sales exceed $100,000; there is no transaction count.
- NHNew Hampshire receivablesNew Hampshire has no general sales tax, so SaaS sold to New Hampshire customers isn’t taxed and there’s no sales tax nexus to track. Customer revenue still drives BPT apportionment.
- NYNew York receivablesNew York taxes SaaS as prewritten software, at 4% plus local rates (8⅞% in NYC). Remote sellers register after $500,000 and 100 sales; a New York employee makes you a vendor at once.
Founder guides on this
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
- RevenueDeferred revenue for SaaS startups, explainedAn annual prepayment is cash today and revenue over a year. How deferred revenue works under ASC 606, why it’s a liability, and the schedule behind it.
- StripeHow to reconcile Stripe payouts to your booksA Stripe payout is charges less fees, refunds and disputes, batched across days. How to book it gross, tie it to the bank, and keep revenue right.
More of the Vermont guide
- AccountingAccounting and state tax in VermontCorporate tax, conformity to federal rules, apportionment and what it does to your books
- PayablesPayables and contractors in VermontPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in VermontWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in VermontRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in VermontCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.