State tax debt in Vermont is collected by Vermont Department of Taxes, not the IRS. Debts are usually expected to be paid in one to two years.
Key facts for Vermont
- State income tax
- 3.35% to 8.75% for 2025. Source
- Payment plan
- Debts are usually expected to be paid in one to two years. Source
- Offer program
- Yes. Use Form OIC-671. You cannot get one if you had one in the past five years. Source
- Collection tools
- Vermont can file liens, garnish wages and levy bank accounts. Source
- License risk
- Business and professional licenses can be revoked. Source
- Public records
- Vermont posts a Top 100 Delinquent Taxpayer Report. Source
Two debts, two sets of rules
- The IRS collects federal taxes, with its own letters and plans.
- Vermont Department of Taxes collects Vermont taxes, with its own rules.
- A plan with the IRS does not stop the state from collecting, and the other way around.
Common questions in Vermont
Who collects state taxes in Vermont?
The Vermont Department of Taxes. It is separate from the IRS. A plan with one does not stop the other from collecting.
Can I get a payment plan for Vermont taxes?
Debts are usually expected to be paid in one to two years.
Does Vermont take offers in compromise?
Yes. Use Form OIC-671. You cannot get one if you had one in the past five years.
Can Vermont suspend a license for tax debt?
Business and professional licenses can be revoked.
Can TaxTruce help with Vermont tax debt?
Yes. TaxTruce is a free service that connects you with tax resolution firms that work in Vermont. Answer a few questions, confirm your phone with a text code, and a firm reviews your situation and calls you back. We are not the IRS or a state agency.
Results depend on your situation. Not every case qualifies.
Sources
Facts on this page come from Vermont Department of Taxes and are linked. Rules change. Check with Vermont Department of Taxes or a licensed tax pro before you act. We are not affiliated with Vermont Department of Taxes.