Vermont income tax rate 2026
OfficialVermont rates, brackets and the tax on common salaries.
- Rate
- 3.35% to 8.75%
- Tax on $75,000
- $2,426
- 3.2% effective
- Tax on $100,000
- $4,076
- 4.1% effective
- Rank among taxing states
- #31 of 42
- by tax taken on $75,000, 1 takes the most
What is the Vermont income tax rate in 2026?
Vermont taxes wages at 3.35% to 8.75% in 2026. On a $75,000 salary, Vermont income tax is $2,426, an effective rate of 3.23%.
How this is calculated
- The effective rate is the yearly state income tax divided by gross pay, after the state's deductions and exemptions.
- The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.
Vermont income tax brackets for 2026
Vermont has 4 brackets for single filers, from 3.35% to 8.75%. The 8.75% top bracket starts at $256,300 of taxable income for a single filer. Vermont tax is owed on top of federal income tax, which follows the federal tax brackets for 2026.
Single
| Taxable income over | Rate |
|---|---|
| $0 | 3.35% |
| $50,750 | 6.6% |
| $122,850 | 7.6% |
| $256,300 | 8.75% |
Married filing jointly
| Taxable income over | Rate |
|---|---|
| $0 | 3.35% |
| $84,700 | 6.6% |
| $204,750 | 7.6% |
| $312,050 | 8.75% |
Head of household
| Taxable income over | Rate |
|---|---|
| $0 | 3.35% |
| $68,000 | 6.6% |
| $175,500 | 7.6% |
| $284,150 | 8.75% |
Brackets apply to taxable income after the state's deductions and exemptions, not to gross pay.
How much Vermont income tax do you pay on $100,000?
On $100,000 of wages, Vermont income tax is $4,076 in 2026, an effective rate of 4.08%. The table runs from $30,000 to $300,000.
How this is calculated
- Each salary is single filer wages with no pre-tax deductions, through the state's rules for the year.
- The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.
What is the Vermont standard deduction in 2026?
The Vermont standard deduction is $7,850 for single filers and $15,700 for married couples filing jointly in 2026. Each filer also gets a personal exemption of $5,400.
- Standard deduction, single
- $7,850
- Married filing jointly
- $15,700
- Personal exemption
- $5,400
How did Vermont income tax change in 2026, and what changes in 2027?
Vermont kept its rate at 3.35% to 8.75% in 2026. No 2027 schedule has been published yet.
| Tax year | Kind | Lowest rate | Top rate | Standard deduction, single | Status |
|---|---|---|---|---|---|
| 2025 | progressive | 3.35% | 8.75% | $7,650 | official |
| 2026 | progressive | 3.35% | 8.75% | $7,850 | official |
How does Vermont income tax compare with other states?
On $75,000, Vermont income tax ranks #31 of 42 states that tax wages, where #1 takes the most. The state income tax rates page compares all of them.
How this is calculated
- Each state's income tax on the same $75,000 salary, single filer, under its rules for 2026.
- States without a wage income tax are left out of this rank.
- The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.
How is Vermont income tax withheld from a paycheck?
Employers withhold Vermont income tax from each paycheck, using the Form W-4VT each employee fills in. On a $75,000 salary paid every two weeks, that is $103.27 a paycheck. Vermont employers withhold about $259 more a year than the tax owed on $75,000, so a typical worker gets it back at filing.
Employer withholding tables can differ from the yearly tax owed; the return settles the difference.
How this is calculated
- Percentage method tables in GB-1210-2026 for single and married employees, after $5,400 a year per allowance, in cents. The calculator assumes Form W-4VT with married status only for married filers and allowances for you, a spouse with no wages, each dependent and head of household status.
Questions people ask
How much Vermont tax is withheld from a bonus?
Employers can withhold Vermont tax on a bonus at a flat 6.6%. The return settles the actual tax on it.
Does Vermont tax overtime and tips?
Yes. Vermont taxes overtime and tips in full. Federal law lets workers deduct qualified tips and the extra half of overtime pay, within limits, from 2025 to 2028, but Vermont has not adopted that.
Do 401(k) contributions lower Vermont income tax?
Yes. Traditional 401(k) contributions lower Vermont taxable wages, as they do for federal income tax.