Estate tax worksheet

Vermont Estate Tax Calculator

Vermont uses a $5 million exclusion and 16% rate, but the return also adds relevant gifts from the two years before death and allocates tax using Vermont property and gift situs.

Updated Oct 2, 20263 primary sources citedEditorial policy

Vermont two-year gift and allocation worksheet

Who this covers and what to enter

Deaths in 2026 and 2027. Use prepared EST-191 amounts; resolve property location, gift situs, deductions and any qualifying-farmer schedule first.

Date of death Federal tentative taxable estate — line 1 ($)Prepared federal Form 706 line 3a, before the state death-tax deduction.Taxable gifts within two years of death — line 2b ($)Only the relevant portion of federal adjusted taxable gifts.Foreign death-tax deduction added back — line 3 ($)Any deduction taken for death taxes paid to a foreign country.Prepared Vermont gross estate — line 8 ($)Resident: Vermont real/tangible property plus intangible property. Nonresident: Vermont real/tangible property only.Gifts from line 2b with Vermont situs — line 9 ($)Confirm situs when each gift was made, including the donor’s residency for intangible gifts.Federal gross estate — line 11 ($)Used with the two-year gifts as the allocation denominator.Prior Vermont estate-tax payments — line 18 ($)Payments reduce the balance after the state tax calculation.Confirmed EST-191 line 16 percentage (%)Use 100 for the ordinary calculation. Use another percentage only from a completed qualifying-farmer Schedule EST-192; this calculator does not determine eligibility. These are prepared Vermont return amounts. I have confirmed residency, gift situs, deductions and the line 16 percentage. This state estimate excludes federal tax, interest and penalties.

Your estimate

Needs your figuresCalculated

Confirm the prepared amounts and percentage.

Adjusted Vermont estate tax — line 17: —
Vermont taxable estate — line 4: —
Amount above $5 million — line 6: —
16% tax before allocation — line 7: —
Tax after property allocation — line 15: —
Balance before interest / penalties: —
Estimated overpayment: —

Whole-dollar estimates, with the property fraction rounded to four decimals. This does not decide whether an estate return is required.

Reviewed October 1, 2026 against the current EST-191 return and Department of Taxes instructions.

A gift can cross the $5 million threshold

Suppose the prepared federal tentative taxable estate is $4.8 million and the includible two-year gifts total $500,000. With no foreign death-tax deduction addback, Vermont taxable estate is $5.3 million. The excess is $300,000 and the tax before allocation is $48,000.

EST-191 adds the tentative taxable estate, two-year gifts and any deducted foreign death taxes before applying the exclusion. The calculator keeps those inputs separate. Return lines 1–7.

Taxable estate and gross estate have different jobs

The taxable estate determines the amount subject to 16%. The allocation denominator uses federal gross estate plus the same two-year gifts. Its numerator uses Vermont gross estate plus the Vermont-situs portion of those gifts. The resulting fraction rounds to four decimals. Return lines 8–15.

Calculated illustration	Before allocation	Property fraction	Ordinary Vermont tax
$6 million taxable and gross estate; all Vermont situs	$160,000	1.0000	$160,000
Same totals; $3 million Vermont gross estate	$160,000	0.5000	$80,000
$10 million taxable and gross estate; $2 million Vermont gross estate	$800,000	0.2000	$160,000

These examples assume no gifts, foreign deduction addback, special farmer adjustment or prior payments. Changing deductions can change taxable estate without changing the gross-estate denominator.

Vermont situs can differ between an estate asset and a gift

The instructions use Vermont real and tangible property for the estate numerator. Residents also include intangible property. For gifts, situs is determined when the gift was executed; intangible gifts are included where the donor was then a Vermont resident. Definitions for lines 8 and 9.

A later move does not automatically change the situs of an earlier gift. Confirm each gift's date, asset type and relevant residency before entering its Vermont portion. The calculator checks the amounts against their federal totals but does not make those legal classifications.

The foreign death-tax deduction is added back

Line 3 restores a foreign death-tax deduction taken on the federal return. A $100,000 addback increases tax before allocation by $16,000 when the estate is already above the exclusion. This is separate from the property's Vermont percentage. Line 3 and tax computation.

Line 16 normally stays at 100%

The current form directs an ordinary estate to enter 100%. A qualifying farmer uses the percentage from a completed Schedule EST-192. The field above accepts a prepared percentage; it does not determine farmer eligibility or compute that schedule. Line 16.

Check the updated filing rule separately

The department announced a filing-threshold change effective June 18, 2026, aligning it with the $5 million payment threshold. Its current guidance also identifies a required federal estate return as a filing trigger where Vermont property is present. Review the applicable rules rather than treating a zero tax estimate as a filing exemption. Vermont estate-tax guidance and 2026 notice.

EST-191 is generally due within nine months after death. An extension to file does not extend payment time. Where federal filing is not required, Vermont's instructions still call for a pro forma federal return and supporting materials. Return and payment instructions.

For related state methods, see Maine's one-year gift inclusion and New York's exclusion phaseout. This worksheet estimates Vermont state estate tax, not the amount distributed to beneficiaries.

First documented September 30, 2026 · Updated October 2, 2026