States with Highest STR Taxes - VT bumps up to #4

States with Highest STR Taxes - VT bumps up to #4

Cliff H.Pro Member
Rental Property Investor · Nashua, NH · Member since 2014 · 598 posts · 477 votes

Contrary to multiple letter writing campaigns and already being historically the 4th highest state an overall tax burden according to the Tax Foundation, Vermont‘s legislature has apparently just increased the state M&R tax to 12% which appears to bump it up to the 4th most taxed state in the country for short term rentals, according to the National Conference of State Legislatures: 

1. DC - 15.95%
2. Connecticut - 15%
3. Hawaii - 14.25%
4. Vermont - 12%
5. Maine - 9%
6. New Hampshire - 8.5%
7. Arkansas - 8.5%
8. Delaware - 8%

Assuming there's additional nuance here with states like California and Alaska handling taxation at local levels, but what are you all hearing in your neck of the woods? 

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    This is just the states portion correct?  Pinellas county FL for example is 13% with 7% going to FL and 6% going to County.  Just curious if Vermont is getting 12% and then the county or city is adding to it?

  • Cliff H.Pro Member
    OP
    Rental Property Investor · Nashua, NH · Member since 2014 · 598 posts · 477 votes
    2y
    Quote from @Andrew Steffens:

    This is just the states portion correct?  Pinellas county FL for example is 13% with 7% going to FL and 6% going to County.  Just curious if Vermont is getting 12% and then the county or city is adding to it?


     Great question Andrew. Yes, Vermont towns have the option for a 1% local options tax in addition to the 12% combined tax above. 

  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y
    Quote from @Cliff H.:
    Quote from @Andrew Steffens:

    This is just the states portion correct?  Pinellas county FL for example is 13% with 7% going to FL and 6% going to County.  Just curious if Vermont is getting 12% and then the county or city is adding to it?


     Great question Andrew. Yes, Vermont towns have the option for a 1% local options tax in addition to the 12% combined tax above. 


     Oh ok so it could still be cheaper than FL where it is combined 13%.  Interesting

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2y

    So in Idaho we pay 3 percent to the county. Our tiny little town implemented a 1% tax now.

  • Real Estate Agent · Colchester, VT · Member since 2023 · 16 posts · 6 votes
    2y

    Many STR owners, hosts, and property managers fought this. It's so unfriendly towards many local Vermonters who use STRs as a way to supplement their mortgage payments, since the state has high taxes across the board. A great resource is VTSTRA (VT short term rental alliance) and I highly recommend checking out their advocacy guide if you're an owner in VT.

  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    2y

    I need to double check, but I believe TN is in the 13% range with state and local.

    Then several areas basically tripled property taxes practically overnight in a massive cash grab.

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