# Vermont aircraft tax

> Vermont charges 6 percent sales or use tax on aircraft, except aircraft bought by air carriers for hire. Parts and equipment installed in any aircraft are exempt, and Vermont has no state aircraft registration fee that we could find.

Source: https://www.aerscheduler.com/aircraft-tax/united-states/vermont
Checked: 2026-10-18

## Do you pay sales tax on an aircraft bought in Vermont?

**Taxed.** Six percent sales tax applies when an aircraft is sold and possession is taken in Vermont, including when it is bought out of state and possession is taken here. Towns that vote a 1% local option tax add it to transactions subject to Vermont sales tax.

> "The tax shall be paid at the rate of six percent of the sales price"
>
> Vermont Statutes, [32 V.S.A. 9771](https://legislature.vermont.gov/statutes/section/32/233/09771). Checked 2026-10-18.

> "Aircraft is sold in Vermont and possession is taken in Vermont. Sales tax due."
>
> Vermont Department of Taxes, [Compliance Corner, Aircraft Sales and Purchases](https://tax.vermont.gov/tax-law-and-guidance/compliance/archive), dated September 16, 2022. Checked 2026-10-18.

> "Aircraft is sold out of state and possession is taken in Vermont. Sales tax due."
>
> Vermont Department of Taxes, [Compliance Corner, Aircraft Sales and Purchases](https://tax.vermont.gov/tax-law-and-guidance/compliance/archive), dated September 16, 2022. Checked 2026-10-18.

> "A municipality may vote to levy a 1% local option tax in addition to collecting state business taxes. A transaction is subject to local option tax if it is subject to the Vermont sales, meals, rooms, or alcoholic beverage tax."
>
> Vermont Department of Taxes, [Compliance Corner, Local Option Tax](https://tax.vermont.gov/tax-law-and-guidance/compliance/archive). Checked 2026-10-18.

## Do you owe use tax on an aircraft bought outside Vermont?

**Depends.** Use tax at six percent is due on an aircraft bought out of state and brought into Vermont. Sales or use tax legally paid to another state is credited if that state gives Vermont the same treatment; if Vermont's rate is higher, the difference is owed.

> "Aircraft is purchased out of state and brought into Vermont. Use tax is due."
>
> Vermont Department of Taxes, [Compliance Corner, Aircraft Sales and Purchases](https://tax.vermont.gov/tax-law-and-guidance/compliance/archive), dated September 16, 2022. Checked 2026-10-18.

> "the rate of six percent for the use within this State, except as otherwise exempted"
>
> Vermont Statutes, [32 V.S.A. 9773](https://legislature.vermont.gov/statutes/section/32/233/09773). Checked 2026-10-18.

> "property or services to the extent that a retail sales or use tax was legally due and paid thereon, without any right to a refund or credit thereof, to any other state or jurisdiction within any other state but only when it is shown that the other state or jurisdiction allows a corresponding exemption with respect to the sale or use of tangible personal property or services upon which such a sales tax or compensating use tax was paid to this State"
>
> Vermont Statutes, [32 V.S.A. 9744(a)(3)](https://legislature.vermont.gov/statutes/section/32/233/09744). Checked 2026-10-18.

## What aircraft sales tax exemptions does Vermont have?

**Depends.** Aircraft sold to a business that holds itself out to the public as engaged in air commerce, for use mainly carrying people or property for hire, are exempt. Parts, machinery and equipment installed in any aircraft are exempt. Drones get neither exemption.

> "Aircraft, but not drones, sold to a person that holds itself out to the general public as engaging in air commerce, for use primarily in the carriage of persons or property for compensation or hire; and parts, machinery, and equipment to be installed in any aircraft, other than drones."
>
> Vermont Statutes, [32 V.S.A. 9741(29)](https://legislature.vermont.gov/statutes/section/32/233/09741). Checked 2026-10-18.

> "Aircraft, purchased for commercial use can be purchased tax-free."
>
> Vermont Department of Taxes, [Compliance Corner, Aircraft Sales and Purchases](https://tax.vermont.gov/tax-law-and-guidance/compliance/archive), dated September 16, 2022. Checked 2026-10-18.

## Are aircraft rentals taxed in Vermont?

**Not clearly published.** Vermont's sales tax reaches rentals of tangible personal property generally, but the Department of Taxes publishes no guidance on aircraft rentals.

## Is flight instruction taxed in Vermont?

**Not clearly published.** The Department of Taxes publishes no guidance on whether flight instruction, or the aircraft time inside a lesson, is taxed.

## Are aircraft parts and maintenance labor taxed in Vermont?

**Exempt.** Parts, machinery and equipment to be installed in any aircraft, including personal aircraft, are exempt from sales and use tax. Drones are excluded.

> "Aircraft, but not drones, sold to a person that holds itself out to the general public as engaging in air commerce, for use primarily in the carriage of persons or property for compensation or hire; and parts, machinery, and equipment to be installed in any aircraft, other than drones."
>
> Vermont Statutes, [32 V.S.A. 9741(29)](https://legislature.vermont.gov/statutes/section/32/233/09741). Checked 2026-10-18.

> "Parts, machinery, and equipment purchased to be installed on all aircraft, including those for personal use, excluding drones, are not subject to Vermont's sales and use tax."
>
> Vermont Department of Taxes, [Compliance Corner, Aircraft Sales and Purchases](https://tax.vermont.gov/tax-law-and-guidance/compliance/archive), dated September 16, 2022. Checked 2026-10-18.

## Does Vermont register or tax aircraft every year?

**Not clearly published.** We found no Vermont aircraft registration or yearly state aircraft fee in the statutes on aeronautics or in Department of Taxes guidance, but no primary source states that none exists.

_Not tax advice. Confirm with the state's revenue department or a CPA before a purchase or a pricing decision._