Current minimum wage in Vermont
Vermont's minimum wage is $14.42 an hour in 2026 and rises each January with inflation, capped at 5 percent a year. Tipped service workers earn half the minimum, $7.21 an hour, plus tips.
The rate rose from $14.01 (effective January 1, 2025) to $14.42 on January 1, 2026, an increase of $0.41 an hour or $853 a year for a full-time worker.
Next scheduled change
Adjusted each January 1 by inflation, capped at 5 percent; the 2027 amount had not been published in the sources reviewed on October 8, 2026.
Tipped minimum wage
Employers may pay tipped employees a cash wage of $7.21 an hour and count tips toward the rest, as long as total pay reaches $14.42 an hour. The federal tipped cash wage is $2.13. Service or tipped employees who receive more than $120 a month in tips can be paid half the minimum wage, $7.21 an hour, plus tips.
What minimum wage pays in Vermont
| Hours per week | Weekly pay | Yearly pay |
|---|---|---|
| 20 hours | $288.40 | $14,997 |
| 25 hours | $360.50 | $18,746 |
| 30 hours | $432.60 | $22,495 |
| 35 hours | $504.70 | $26,244 |
| 40 hours | $576.80 | $29,994 |
After federal and Vermont taxes, a full-time minimum wage worker who files single keeps about $25,686 a year, or $988 per biweekly check. Run your own numbers with the Vermont paycheck calculator or see the full breakdown for $14 an hour.
Overtime rules
Follows the federal 40-hour weekly overtime rule.
City and county minimum wages
No local minimum wages.
Exceptions and special rates
The state minimum wage applies to employers with 2 or more employees.
How Vermont compares
Vermont ranks #20 of 51 for its minimum wage. The federal minimum wage is $7.25 an hour.
Frequently asked questions
What is the minimum wage in Vermont in 2026?
The Vermont minimum wage is $14.42 an hour as of January 1, 2026.
What is the tipped minimum wage in Vermont?
Employers in Vermont may pay tipped workers a cash wage of $7.21 an hour, as long as tips bring total pay to at least $14.42. Service or tipped employees who receive more than $120 a month in tips can be paid half the minimum wage, $7.21 an hour, plus tips.
When does the Vermont minimum wage go up next?
Adjusted each January 1 by inflation, capped at 5 percent; the 2027 amount had not been published in the sources reviewed on October 8, 2026.
How much is minimum wage in Vermont per year?
At $14.42 an hour, a 40-hour week pays $577 and a full year pays $29,994 before taxes. A single filer keeps about $25,686 after federal and Vermont taxes.
How does overtime work in Vermont?
Follows the federal 40-hour weekly overtime rule.