Why incorporate in Vermont?

Business Information & Rankings

• Vermont ranked 1st on the Healthiest State Index (Morgan Quitno, 2006)
• Vermont ranked 1st on the Smartest State Index: 2005-2006 (Morgan Quitno 2005)
• Vermont ranked 3rd Most Livable State in the nation. (Morgan Quitno, 2005)
• Vermont ranked 6th among the fifty states in export growth in 2004.

Cost of living

Crime Rate

Vermont has the 4th lowest overall crime ranking in the U.S. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Taxed. Municipalities may exempt manufacturers, inventories and tax business machinery and equipment instead.

Corporate Income Tax
Structured with four brackets and a top rate of 9.75%, Vermont’s corporate tax structure is among one of the priciest in the nation.

Personal Income Tax
Vermont’s income tax system has five brackets with a top rate of 9.5% starting at $326,450.

Personal Property Tax
Property is assessed at the municipal local level in Vermont. Vermont does not charge intangible property taxes.

State Sales and Use Tax
Base Rate: 6.00%
Machinery Rate: none

Vermont provides an exemption for machinery and equipment for use or consumption directly and exclusively in manufacturing tangible personal property for sale or in manufacturing other machinery or equipment, parts or supplies for use in the manufacturing process.

Unemployment Insurance
Vermont charges new employers 1.0% for 2 to 2.5 years.