How Vermont taxes your paycheck
Vermont taxes wages at 3.35%, 6.6%, 7.6% and 8.75%, with bracket thresholds indexed to inflation for 2026. Rates are unchanged; 2026 Act 164 (H.933), a miscellaneous tax act, made no change to rates, brackets, the standard deduction or the exemption. Taxable income is federal AGI less Vermont's own standard deduction and a $5,400 personal exemption (2026). Filers with federal AGI over $150,000 pay the greater of the regular tax or 3% of AGI.
2026 Vermont income tax brackets
| Taxable income (single) | Rate |
|---|---|
| $0 to $50,750 | 3.35% |
| $50,750 to $122,850 | 6.6% |
| $122,850 to $256,300 | 7.6% |
| Over $256,300 | 8.75% |
| Taxable income (married filing jointly) | Rate |
|---|---|
| $0 to $84,700 | 3.35% |
| $84,700 to $204,750 | 6.6% |
| $204,750 to $312,050 | 7.6% |
| Over $312,050 | 8.75% |
| Deduction or credit | Single | Married | Head of household |
|---|---|---|---|
| Standard deduction | $7,850 | $15,700 | $11,800 |
| Personal exemption | $5,400 | $10,800 | $5,400 |
Vermont payroll programs
These employee contributions come out of each paycheck in addition to income tax.
| Program | Employee rate | Wage cap |
|---|---|---|
| Child Care Contribution (The total contribution is 0.44% of covered wages, paid by the employer. The employer may withhold up to one quarter of it (0.11% of wages) from employees. No wage cap. In effect since July 1, 2024.) | 0.11% | None |
Local income taxes
Vermont municipalities do not tax wages. Local option taxes apply only to sales, meals, rooms and alcohol.
Take-home pay in Vermont at common salaries
Single filer, 2026 rules, no pre-tax deductions or local taxes.
| Salary | Federal tax | FICA | Vermont taxes | Take-home | Biweekly |
|---|---|---|---|---|---|
| $30,000 | $1,420 | $2,295 | $594 | $25,691 | $988 |
| $40,000 | $2,620 | $3,060 | $940 | $33,380 | $1,284 |
| $50,000 | $3,820 | $3,825 | $1,286 | $41,069 | $1,580 |
| $60,000 | $5,020 | $4,590 | $1,632 | $48,758 | $1,875 |
| $75,000 | $7,670 | $5,738 | $2,509 | $59,084 | $2,272 |
| $100,000 | $13,170 | $7,650 | $4,186 | $74,994 | $2,884 |
| $150,000 | $24,734 | $11,475 | $7,680 | $106,111 | $4,081 |
How Vermont compares
At a $60,000 salary, Vermont ranks #15 of 51 for take-home pay. The table below shows the states closest in take-home pay.
Minimum wage in Vermont
The Vermont minimum wage is $14.42 an hour as of January 1, 2026. A full-time minimum wage job pays $29,994 a year before taxes and about $25,686 after taxes. See the full Vermont minimum wage guide for tipped wages and scheduled increases.
What this calculator does not include
Ignores the minimum tax of 3% of federal AGI for AGI over $150,000, extra standard deductions for age 65+ or blindness, and Vermont credits such as the child tax credit and EITC. Head-of-household brackets and deduction are derived from statutory indexing (not yet published) and could differ by about $50. The calculator also leaves out dependents, tax credits, additional withholding on your W-4 and non-wage income. Your employer's withholding can differ from your final tax bill.
Frequently asked questions
Does Vermont have a state income tax?
Yes. Vermont taxes wages at graduated rates from 3.35% to 8.75% for 2026. Your employer withholds it from each paycheck along with federal taxes.
How much is $60,000 after taxes in Vermont?
A single filer earning $60,000 in Vermont keeps about $48,758 a year, or $4,063 a month, in 2026. That ranks 15 of 51 for take-home pay at that salary.
Does Vermont have local income taxes?
Vermont municipalities do not tax wages. Local option taxes apply only to sales, meals, rooms and alcohol.
What is the minimum wage in Vermont?
The minimum wage in Vermont is $14.42 an hour as of January 1, 2026. Full time, that is $29,994 a year before taxes and about $25,686 after taxes for a single filer.
Sources
- Vermont Department of Taxes - 2026 Income Tax Withholding Instructions, Tables, and Charts (GB-1210)
- USDA NFC bulletin - Vermont State Income Tax Withholding (June 9, 2026)
- 32 V.S.A. § 5822 - Tax on income of individuals (rates, indexing, 3% AGI minimum)
- 32 V.S.A. chapter 246 - Child Care Contribution
- Vermont Act 164 of 2026 (H.933), as enacted
- Tax Foundation - State Individual Income Tax Rates and Brackets, 2026 (cross-check; shows 2025 VT amounts)
- Vermont Department of Taxes - 2026 Income Tax Withholding Tables
- 32 V.S.A. 5811 (definitions incl. standard deduction and personal exemption indexing)
- IRS Rev. Proc. 2025-32 (2026 federal tax tables)