Vermont Capital Gains Tax Calculator
Calculate your 2026 capital gains tax in Vermont. Vermont taxes capital gains at rates up to 8.75%, plus federal taxes.
Original purchase price
Renovations, additions — added to your basis
Agent commissions, closing costs, title & transfer fees
Total Tax
$51,300
25.7% effective rate
Capital Gain
$200,000
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Tax Breakdown
Sale price minus selling costs and all taxes (before any mortgage payoff).
Federal
$33,800
VT State
$17,500
Effective Rate
25.7%
Vermont Capital Gains Tax
Vermont taxes capital gains as ordinary income at rates up to 8.75%, which applies to 2026 taxable income over $256,300 single or $312,050 joint (preliminary figures). This calculator applies the 8.75% top rate to the whole gain and does not apply Vermont's capital gains exclusion, so it overstates the tax for most filers. Filers can exclude either the first $5,000 of net long-term gain or 40% of gain on qualifying assets held more than 3 years, capped at the lesser of $350,000 or 40% of federal taxable income.
Long-term: Taxed as ordinary income (up to 8.75%), less a $5,000 or 40% exclusion for qualifying gains
Short-term: Taxed as ordinary income (up to 8.75%)
NIIT Applied
The 3.8% Net Investment Income Tax applies because your income exceeds $200,000.
Vermont Capital Gains Tax Details
Tax Treatment
Tax Type
Taxed as ordinary income
Maximum Rate
8.75%
Available Exemptions
- Federal home-sale exclusion ($250K single / $500K married filing jointly) flows through to the Vermont return
- Exclusion of the first $5,000 of net long-term gain, or 40% of gain on assets held more than 3 years (not your home, most depreciable property, or publicly traded stocks and bonds), capped at the lesser of $350,000 or 40% of federal taxable income (32 V.S.A. § 5811)
- From 2026, qualified small business stock gain excluded federally under Section 1202 is added back to Vermont income but can use the 40% exclusion
- Selling costs and capital improvements reduce the taxable gain
Vermont Capital Gains Tax FAQ
Official References
- IRS Topic 409: Capital Gains and Losses
Federal capital gains tax guidance
- IRS Publication 523: Selling Your Home
$250K / $500K home-sale exclusion, basis adjustments, and selling expenses
- Vermont Department of Taxes — Schedule IN-153 Capital Gains Exclusion Instructions
Vermont state capital gains rules
This calculator provides estimates. Consult a tax professional for advice specific to your situation in Vermont.
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