---
title: State Tax Debt Help in Vermont: 2026 Guide | TaxTruce
url: https://taxtruce.com/states/vermont
updated: 2026-10-29
---

# Tax help in Vermont

Vermont tax rules, in plain words.

Updated October 8, 20265 sources[Fact checked](/editorial-standards)

The short answer

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](https://tax.vermont.gov/sites/tax/files/documents/TaxRateSched-2025.pdf)

Payment plan
:   Debts are usually expected to be paid in one to two years. [Source](https://tax.vermont.gov/help/collections)

Offer program
:   Yes. Use Form OIC-671. You cannot get one if you had one in the past five years. [Source](https://tax.vermont.gov/help-and-resources/collections/oic)

Collection tools
:   Vermont can file liens, garnish wages and levy bank accounts. [Source](https://tax.vermont.gov/help/collections)

License risk
:   Business and professional licenses can be revoked. [Source](https://tax.vermont.gov/help/collections)

Public records
:   Vermont posts a Top 100 Delinquent Taxpayer Report. [Source](https://tax.vermont.gov/help/collections)

## 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

1. [Vermont Department of Taxes](https://tax.vermont.gov)
2. [Vermont Department of Taxes: income tax rates](https://tax.vermont.gov/sites/tax/files/documents/TaxRateSched-2025.pdf)
3. [Vermont Department of Taxes: payment plans](https://tax.vermont.gov/help/collections)
4. [Vermont Department of Taxes: offers and settlements](https://tax.vermont.gov/help-and-resources/collections/oic)
5. [Census data.census.gov ACS 2020-2024 profile tables, Vermont](https://data.census.gov/table/ACSDP5Y2024.DP04?g=040XX00US50)

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.

[En español](/es/estados/vermont)[All states](/states)

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Run the numbers with our [free tax tools](/tools), like the penalty and payment plan math.