Since returning to the state house this January, lawmakers targeted May 11th as the final work day of the year.
But Friday, leadership conceded it won't happen.
Sen. John Campbell, Senate Pro Tem said, "In order for us to make sure that all issues have been addressed that have been brought up by other members, we feel it's necessary for them to have a little more time."
Legislators and the Governor agreed late-last week not to raise additional tax dollars.
But Senators and Representatives working closest with the budget want to slightly shift the tax burden.
They say their plan would lighten the load on the lower and middle class, by closing loopholes allowing some wealthy Vermonters to pay rates similar to the poorest.
"I've only heard about proposals, I haven't seen them." said Governor Shumlin.
The Governor threatened to veto such a plan, though he did not use the word, because he believes it violates the earlier agreement not to raise new money.
"We believe that it raises millions and millions of dollars, secondly you don't reform tax policy on the fly, third we don't need the money." added Shumlin.
Neither side appears ready to compromise on the issue.
House Speaker Shap Smith says the impasse may mean the state will be forced to continue with last year's policies.
"My hope is that we can come to agreement on a tax bill, we may not, we may." said Smith.
However, the state is federally-mandated to find a way to pay for its healthcare exchange.
Neither the Governor or legislative leadership could offer specifics as to how that will happen without all parties agreeing to a tax and budget deal.