Credit card processing and merchant services in Burlington, VT
Burlington has had Vermont's 1% local option sales tax since 2006, and its charter taxes on meals, entertainment or lodging are run by the city itself, apart from your state returns.
Burlington has collected Vermont's 1% local option sales tax since July 2006, according to the Department of Taxes, so general sales in the city carry 7% instead of the state's 6%. Restaurants, hotels and entertainment businesses can have another layer on top of that. The Department of Taxes says Burlington's city charter authorizes its own taxes on meals, entertainment or lodging, and that the city, not the state, administers and collects them.
Rates and forms for those taxes come from the city. The state's instructions for its meals and rooms return tell businesses in Burlington to contact the city for information on collecting and remitting the local tax, so make that call before you file or program a register. All of this sits alongside the state's 9% meals and rooms tax and its 10% tax on alcohol served in restaurants and bars, which you file with Vermont.
In practice, a Burlington bar and kitchen answers to the city as well as the state, and the state taxes food and drinks at different rates. Set your POS up to keep meals, alcohol and retail sales in separate categories from the start. Then each return pulls straight from your sales report instead of a spreadsheet you rebuild every month.
The Census Bureau puts Burlington at 44,019 residents as of July 1, 2025. Statewide rules, including the card network limits on surcharges, are on our Vermont page. We supply POS terminals and interchange-plus pricing to Vermont businesses remotely, and a free statement review will show you what each card type is costing.
Rules that matter in Burlington, VT
Burlington's city-run charter taxes
The Vermont Department of Taxes notes that the City of Burlington, like the City of Rutland, has its own taxes on meals, entertainment or lodging under its city charter, and that the city administers and collects them. They're separate from the state's 9% meals and rooms tax, which you still file with Vermont.
The state's instructions for its meals and rooms return tell businesses in Burlington to contact the city for information on collecting and remitting the city tax. Confirm the current rates and filing steps with the city before you set up your POS.
Sources: Vermont Department of Taxes, Local option tax; Vermont Department of Taxes, Form MRT-441 instructions: Meals and rooms tax return (PDF)
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Common questions
What is the sales tax rate in Burlington, Vermont?
7%. That's Vermont's 6% sales tax plus the 1% local option sales tax, which the Department of Taxes lists as in effect in Burlington since July 2006. Meals, lodging and alcohol served in restaurants and bars fall under the state's meals and rooms tax instead.
Does a Burlington restaurant owe city tax as well as state tax?
Yes. The Department of Taxes says Burlington's charter gives the city its own taxes on meals, entertainment or lodging, which the city administers and collects itself. You still owe the state its 9% meals and rooms tax on food and 10% on alcohol served for immediate consumption. Ask the city for its current rates before you set up your POS.
Who collects Burlington's city tax on meals and lodging?
The city does. The Department of Taxes says Burlington administers and collects its own charter taxes, and the state's meals and rooms return instructions tell businesses there to contact the city about collecting and remitting them. Start with the City of Burlington for rates and forms, and keep filing the state's meals and rooms tax with Vermont.
What state tax does a Burlington bar charge on drinks?
10% on alcoholic beverages served for immediate consumption, while food falls under the 9% meals and rooms tax. Burlington's own charter taxes are separate and handled by the city, so give drinks and food their own tax categories on your POS and check the city's rates before you open.
Can a Burlington shop add a credit card surcharge?
Vermont has no surcharge statute, so Visa and Mastercard rules decide: credit cards only, capped at your cost and at 3% for Visa or 4% for Mastercard, posted at the entrance and register, and printed on the receipt. Under Visa's rules, a Burlington shop also has to send its acquirer written notice 30 days in advance. Debit and prepaid cards are off limits.
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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