Credit card processing and merchant services in Vermont
Vermont's sales tax is 6% or 7% depending on the town, and meals and rooms carry 9% or more. We help Vermont businesses get the rates right and pay less to accept cards.
Card surcharges
Surcharging allowedNo Vermont law limits surcharges; Visa's 3% and Mastercard's 4% caps, notice and receipt rules still apply.
Sales tax
6% state rate, plus 1% local option
Last checked
October 6, 2026
In Vermont, the right sales tax rate depends on the town. The state rate is 6%, and a municipality that votes for it adds a 1% local option tax, for 7%. The same 1% can sit on top of the 9% meals and rooms tax and the 10% tax on alcoholic beverages served in restaurants and bars. A business with shops in two towns may need two different rates, so set tax by location in your POS instead of once for the whole company.
Restaurants and lodging take the most care. Prepared and restaurant meals, lodging and meeting rooms fall under the 9% meals and rooms tax, which becomes 10% in a town with the local option. Alcohol served for immediate consumption is taxed at 10%, or 11% with the local option. An inn with a dining room and a bar can have a different rate on the drinks than on the room and the dinner, all on one bill.
Vermont has no statute on credit card surcharges, so the card network limits in the rules below are the ones to follow: credit cards only, and never more than your cost.
Small businesses account for 62.1% of Vermont employment in the SBA Office of Advocacy's 2025 profile. We work with Vermont merchants remotely, with a dedicated rep and interchange-plus pricing that shows the network cost and our margin separately. A free statement review will show what each card type costs you, and if you also sell in New Hampshire, its page covers that state's rules.
What Vermont merchants should know
Credit card surcharges in Vermont
Vermont has no statute that bans or caps credit card surcharges, and NCSL's table of state surcharge laws lists none for the state. The card network rules apply:
- Visa: in Vermont, cap the surcharge at your merchant discount rate or 3%, whichever is lower, and give your acquirer 30 days' written notice.
- Mastercard: Vermont businesses can't surcharge more than their average effective merchant discount rate or 4%.
- No surcharges on debit or prepaid cards.
- A Vermont business that surcharges must disclose it at the point of entry and the point of sale, with the amount shown on every receipt.
Sources: NCSL, Credit or debit card surcharges statutes (table last updated 2016); Visa, U.S. Merchant Surcharge Q and A (PDF); Mastercard, Merchant surcharge rules (US)
Vermont sales tax and the local option tax
Vermont's sales tax rate is 6%. A municipality may vote to levy a 1% local option sales tax, which makes the combined rate 7% there. The Department of Taxes publishes the list of municipalities with local option taxes.
Sources: Vermont Department of Taxes, Sales and use tax; Vermont Department of Taxes, Local option tax
Meals and rooms tax
The meals and rooms tax is 9% on prepared and restaurant meals, lodging and meeting rooms, and alcoholic beverages sold for immediate consumption in restaurants and bars are taxed at 10%. Where a local option applies, add 1%: 10% on meals and rooms, and 11% on alcoholic beverages.
Sources: Vermont Department of Taxes, Meals and rooms tax: getting started; Vermont Department of Taxes, Local option tax
Cities we cover in Vermont
Payment services we provide
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Common questions
What sales tax rate do I charge in Vermont?
6%, or 7% if your business is in a municipality with a 1% local option sales tax. The Department of Taxes publishes the list of towns with local option taxes, so check yours before you set your POS.
What is the tax on restaurant meals in Vermont?
9% under the meals and rooms tax, or 10% in a town with a local option meals tax. Alcoholic beverages served in restaurants and bars are taxed at 10%, or 11% with the local option.
Do I collect a local option tax on hotel rooms too?
If your town has adopted a local option rooms tax, yes: the 9% rooms tax plus 1%, for 10%. Towns vote on each local option tax, so check which ones apply where you operate before you set up your booking system.
Can I add a credit card surcharge in Vermont?
Vermont law doesn't restrict them, so it comes down to Visa and Mastercard: a surcharge can go on credit cards only, can't top your cost or the 3% Visa and 4% Mastercard caps, and has to be posted at the entrance and checkout and printed on the receipt.
Other states we serve besides Vermont
- Alabama
- Arizona
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- Colorado
- Connecticut
- Delaware
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- Idaho
- Illinois
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- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
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- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
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- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Virginia
- Washington
- Washington, DC
- West Virginia
- Wisconsin
- Wyoming
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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