Vermont Paycheck Calculator
Free Vermont paycheck calculator. Estimate your take-home pay with current Vermont state tax rates and federal withholdings. Calculate federal income tax, Social Security, Medicare, and Vermont state withholdings instantly.
What you should know about Vermont taxes
Vermont has four brackets with a top rate of 8.75%. Combined with high property taxes and a high cost of living for a rural state, Vermont is one of the most heavily taxed states per capita.
Vermont Income Tax Brackets — 2026
| Tax Rate | Taxable Income Range |
|---|---|
| 3.35% | $0 – $45,400 |
| 6.6% | $45,401 – $110,050 |
| 7.6% | $110,051 – $229,550 |
| 8.75% | $229,551+ |
Vermont's Progressive Tax Brackets
Vermont has four income tax brackets from 3.35% to 8.75%. Most workers in the $45K–$110K range pay the 6.6% rate. The standard deduction follows federal amounts ($14,600 for single filers). Vermont has no local income taxes in Burlington, Montpelier, or anywhere else. The state offers an earned income credit equal to 38% of the federal EITC, which is one of the most generous state-level supplements. For a Burlington worker earning $65,000, the effective state rate is about 5.4%. Vermont also taxes capital gains as ordinary income with no special rate, which affects investors and real estate sellers.
Vermont's Small but Diverse Economy
Vermont has the second-smallest population in the US, which creates a tight labor market. Healthcare (University of Vermont Medical Center), education (UVM, Middlebury), tourism (skiing at Stowe, Killington), and agriculture (including the iconic dairy and maple syrup industries) drive the economy. Ben & Jerry's (Unilever), Green Mountain Coffee (Keurig Dr Pepper), and GlobalFoundries (semiconductor fab in Essex Junction) are major private employers. Remote workers have been moving to Vermont in growing numbers, attracted by quality of life despite the high taxes. The $13.67 minimum wage is among the highest in New England and adjusts annually.