Sales tax on labor in Vermont: not taxed on building repairs and new construction; repairs to things and installation depend on the job

Repairing a thing in Vermont

It depends. Labor to repair a thing back to its original condition is not taxed; the parts are. What it turns on: whether labor and parts are listed separately on the bill.

• “If labor is expended in repairing or altering existing property belonging to another to restore that item to its original condition or usefulness without producing new parts, the tax does not apply to the labor charge.” — Vermont Sales and Use Tax Regulations (effective January 1, 2019), Reg. 1.9771(3)-3, page date: effective 2019-01-01
• “Repair parts and accessories are subject to tax when sold to a retail customer, but installation and labor are not subject to tax. Be aware that if labor and materials are not separately stated, the entire amount charged to the customer becomes taxable.” — Vermont Sales and Use Tax Guide for the Automotive Repairs Industry (GB-1161), page date: October 2023

Repairing a home or building in Vermont

Not taxed. Repairs and improvements to buildings (plumbing, electrical, carpentry, roofing and painting): don't charge sales tax. You pay tax on materials when you buy them. You may not itemize sales tax on the invoice.

• “When contractors incorporate tangible personal property (TPP) into buildings, structures, and landscapes, the contractor should not charge sales tax to the customer. ... the contractor should pay tax on the TPP at the time of purchase. The cost of service is not subject to sales tax.” — Contractors (Vermont Department of Taxes), no date on the page
• “Examples of real property improvements include electrical, plumbing, heating, ventilation, and cooling systems; carpentry; roofing; plastering; foundations; landscaping; and painting.” — Contractors (Vermont Department of Taxes), no date on the page
• “Although contractors cannot itemize the sales tax on their invoices, the invoices may include the statement: "The contractor has paid all applicable Vermont taxes on materials used for this job."” — Contractors (Vermont Department of Taxes), no date on the page
• “Once the tangible personal property is incorporated into the real property, the sale of the real property is not subject to sales and use tax, regardless of whether the incorporated tangible personal property is itemized by the seller.” — Vermont Sales and Use Tax Regulations (effective January 1, 2019) - sales to contractors, page date: effective 2019-01-01

Installation work in Vermont

It depends. Installing something that becomes part of the building: no sales tax to the customer (you paid tax on the materials). Selling and installing an item as a retailer: installation charges are left out of the taxable price only when listed separately on the invoice. What it turns on: whether the item is incorporated into the real property, and whether installation is listed separately.

• “When contractors incorporate tangible personal property (TPP) into buildings, structures, and landscapes, the contractor should not charge sales tax to the customer. ... the contractor should pay tax on the TPP at the time of purchase. The cost of service is not subject to sales tax.” — Contractors (Vermont Department of Taxes), no date on the page
• “The following are excluded from the sales price when they are separately stated on the invoice, bill of sale, or similar document given to the purchaser: ... Charges for the installation of the property sold” — Vermont Sales and Use Tax Regulations (effective January 1, 2019) - sales price, page date: effective 2019-01-01

New construction in Vermont

Not taxed.

• “When contractors incorporate tangible personal property (TPP) into buildings, structures, and landscapes, the contractor should not charge sales tax to the customer. ... the contractor should pay tax on the TPP at the time of purchase. The cost of service is not subject to sales tax.” — Contractors (Vermont Department of Taxes), no date on the page
• “Examples of real property improvements include electrical, plumbing, heating, ventilation, and cooling systems; carpentry; roofing; plastering; foundations; landscaping; and painting.” — Contractors (Vermont Department of Taxes), no date on the page
• “Although contractors cannot itemize the sales tax on their invoices, the invoices may include the statement: "The contractor has paid all applicable Vermont taxes on materials used for this job."” — Contractors (Vermont Department of Taxes), no date on the page
• “Once the tangible personal property is incorporated into the real property, the sale of the real property is not subject to sales and use tax, regardless of whether the incorporated tangible personal property is itemized by the seller.” — Vermont Sales and Use Tax Regulations (effective January 1, 2019) - sales to contractors, page date: effective 2019-01-01

Listing labor separately on the bill in Vermont

Changes the answer.

• “The following are excluded from the sales price when they are separately stated on the invoice, bill of sale, or similar document given to the purchaser: ... Charges for the installation of the property sold” — Vermont Sales and Use Tax Regulations (effective January 1, 2019) - sales price, page date: effective 2019-01-01
• “Once the tangible personal property is incorporated into the real property, the sale of the real property is not subject to sales and use tax, regardless of whether the incorporated tangible personal property is itemized by the seller.” — Vermont Sales and Use Tax Regulations (effective January 1, 2019) - sales to contractors, page date: effective 2019-01-01
• “Repair parts and accessories are subject to tax when sold to a retail customer, but installation and labor are not subject to tax. Be aware that if labor and materials are not separately stated, the entire amount charged to the customer becomes taxable.” — Vermont Sales and Use Tax Guide for the Automotive Repairs Industry (GB-1161), page date: October 2023

Materials on jobs in Vermont

What Vermont's own pages say about the materials:

• “When contractors incorporate tangible personal property (TPP) into buildings, structures, and landscapes, the contractor should not charge sales tax to the customer. ... the contractor should pay tax on the TPP at the time of purchase. The cost of service is not subject to sales tax.” — Contractors (Vermont Department of Taxes), no date on the page

Trade services Vermont taxes

None of the Vermont pages used here names a trade service, such as cleaning or lawn care, as taxed on its own.

• “When contractors incorporate tangible personal property (TPP) into buildings, structures, and landscapes, the contractor should not charge sales tax to the customer. ... the contractor should pay tax on the TPP at the time of purchase. The cost of service is not subject to sales tax.” — Contractors (Vermont Department of Taxes), no date on the page

What was not checked for Vermont

• The Vermont answer for repairing a thing comes from its auto repair guide, which speaks of vehicle repairs; it is applied here to repairs of things in general.

Check with the Vermont Department of Taxes

Before you bill: check with the Vermont Department of Taxes. As of November 6, 2026.

This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.

Compare Vermont with every state's answer, or with its neighbours just below.

Next door to Vermont

• Massachusetts: home repair not taxed, installation depends
• New Hampshire: no sales tax (not fully confirmed)
• New York: home repair taxed, installation depends

Official sources for Vermont

• Contractors (Vermont Department of Taxes) — no date shown
• Vermont Sales and Use Tax Regulations (effective January 1, 2019) - sales to contractors — effective 2019-01-01
• Vermont Sales and Use Tax Guide for the Automotive Repairs Industry (GB-1161) — October 2023

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