Is there sales tax on groceries in Vermont?
Quick answer
No. Groceries bought for home preparation are exempt from Vermont state sales tax. Prepared and restaurant food is still taxable.
Food and food ingredients are exempt; prepared meals carry the separate 9% meals and rooms tax.
Rule summary
How Vermont treats each category.
| Grocery food (home consumption) | Exempt from state sales tax |
|---|---|
| Prepared and restaurant food | Taxable at the full combined rate (7%) |
| Candy and soft drinks | Usually taxable even where groceries are exempt |
| Prescription medicine | Exempt |
Source: Vermont Department of Taxes · rates as published for 2026
This page summarizes the general rule. Every state writes exceptions for specific products, and local jurisdictions can differ from the state treatment. Confirm your situation with the Vermont Department of Taxes or a tax professional before relying on it for filing.
Combined rates in Vermont
What a taxable purchase actually costs in Vermont.
Frequently asked
Answers pulled from the same rule set.
- Is there sales tax on groceries in Vermont?
- No. Groceries bought for home preparation are exempt from Vermont state sales tax. Prepared and restaurant food is still taxable.
- Is prepared food taxed differently than groceries in Vermont?
- Yes. Vermont treats hot, ready-to-eat and restaurant food as a taxable retail sale even where unprepared grocery food is exempt or reduced.
- Are prescription drugs taxable in Vermont?
- No. Prescription medicine is exempt from sales tax in Vermont.
More Vermont guides
Other Vermont rules that change the total.