How Vermont's Income Tax Works in 2026
Vermont taxes income across four brackets that begin at the first dollar: 3.35% up to $49,400, 6.60% to $119,700, 7.60% to $249,700, and 8.75% above that for single filers. The brackets are wide, so a typical worker lives entirely in the first one, but there is no 0% bracket softening the start.
The standard deduction is $7,650 for single filers and $15,300 for joint filers in 2026, with a $5,300 personal exemption per filer stacked on top. Those two figures shelter nearly $13,000 of a single worker's income before the 3.35% rate even begins.
Using the Calculator
Vermont is preselected below. Enter your gross pay and frequency to see the four-bracket math applied to your income. Most workers will see only the first two rates in action.
Burlington sits close to the New Hampshire line, which makes the comparison irresistible. Run the same salary through our New Hampshire paycheck calculator for the no-tax version, or the New York version for the other neighbor.
Where Your Vermont Paycheck Goes
Federal income tax and FICA take the largest shares, then Vermont's graduated tax comes out through withholding. That is the full government deduction list. Vermont does not impose a mandatory paid leave payroll tax on workers; instead it offers a voluntary family and medical leave insurance program through a private carrier that workers can choose to join.
Property taxes deserve a mention in any Vermont budget. Like New Hampshire next door, Vermont leans on property taxes, and homeowners in Chittenden County feel it. The paycheck tells one story; the property tax bill tells another.
Vermont Payroll Details to Know
Minimum wage and overtime
Vermont's minimum wage is $14.42 per hour in 2026, adjusted each year for inflation. Tipped workers have a lower cash wage with a tip credit. Overtime follows federal rules at time and a half after 40 hours in a week.
Payday rules
Vermont requires weekly pay for most employees, with wages due within 6 days after the pay period ends. Employers may pay biweekly or semimonthly with written notice to workers. Final pay after separation has short statutory deadlines.
Worked Example: $75,000 in Burlington
Take a single filer in Burlington earning $75,000, paid biweekly. After the $7,650 standard deduction and $5,300 exemption, Vermont taxable income is $62,050. The first $49,400 is taxed at 3.35% ($1,654.90) and the remaining $12,650 at 6.60% ($834.90), for a state bill near $2,490.
| Item | Annual Amount |
| Gross Pay | $75,000.00 |
| Federal Income Tax | ~$7,670.00 |
| Social Security (6.2%) | $4,650.00 |
| Medicare (1.45%) | $1,087.50 |
| Vermont State Income Tax | ~$2,489.80 |
| Net Annual Pay | ~$59,102.70 |
Net pay is about $59,103 a year, or roughly $2,273.18 every two weeks, an effective all-in rate near 21.2%. The jump from 3.35% to 6.60% at $49,400 is the threshold to watch as raises arrive. Enter your own salary above.
Paycheck Mistakes Vermont Workers Make
- Assuming a 0% bracket exists. Vermont taxes from the first dollar of taxable income at 3.35%.
- Forgetting the $5,300 personal exemption stacks on top of the standard deduction.
- Not noticing when a raise pushes income across the $49,400 line into the 6.60% bracket.
- Overlooking property taxes when comparing Vermont take-home pay to New Hampshire's.
- Assuming the voluntary paid leave program deducts automatically. Enrollment is a choice, not a default.
Frequently Asked Questions
What are Vermont's income tax brackets for 2026?
3.35% from the first dollar, 6.60% above $49,400, 7.60% above $119,700, and 8.75% above $249,700 for single filers.
What is Vermont's standard deduction for 2026?
$7,650 for single filers and $15,300 for joint filers, plus a $5,300 personal exemption per filer.
What is the minimum wage in Vermont for 2026?
$14.42 per hour, adjusted annually for inflation.
Does Vermont have local income taxes?
No. Vermont municipalities have no power to impose wage taxes.
Does Vermont charge extra payroll taxes?
No mandatory worker payroll tax for paid leave. Vermont offers a voluntary family and medical leave insurance program instead.
Why does the 3.35% bracket start at zero?
Vermont has no 0% bracket, but the standard deduction and exemption shelter the bottom dollars before any rate applies.
More Vermont and Paycheck Tools
Create a matching stub with the Pay Stub Generator, or estimate shopping costs with the Vermont sales tax calculator. Compare with the New Hampshire and New York paycheck calculators, or head back to the main Paycheck Calculator.
Sources: IRS Publication 15-T, U.S. Department of Labor, Tax Foundation 2026 state tax brackets, the Vermont Department of Taxes. Figures reflect 2026 tax law. This calculator gives an estimate for planning purposes and is not tax advice.