Calculate your take-home pay in The Green Mountain State. Vermont income tax rate: 8.75%.
Vermont has four tax brackets ranging from 3.35% to 8.75%, among the highest rates in the nation. Vermont conforms to the federal standard deduction. The state has no local income taxes.
| Item | Per Paycheck | Monthly | Annual |
|---|---|---|---|
| Gross Pay | - | - | - |
| Federal Income Tax | - | - | - |
| Vermont State Tax | $0 | $0 | $0 |
| Social Security | - | - | - |
| Medicare | - | - | - |
| 401(k) + Pre-Tax | - | - | - |
| Take-Home Pay | - | - | - |
Vermont has a progressive income tax with a top rate of 8.75%. This calculator estimates your take-home pay after federal income tax, state income tax, Social Security, Medicare, and any pre-tax deductions like 401(k) contributions. Enter your salary or hourly wage above to see a detailed breakdown of your paycheck.
Vermont has one of the highest income tax rates, with four brackets: 3.35%, 6.6%, 7.6%, and 8.75%. The top rate applies to income above $229,500 for single filers. Vermont uses federal taxable income as the starting point, so the federal standard deduction effectively serves as the Vermont standard deduction. The state exempts Social Security benefits from tax for most recipients.
Regardless of state taxes, all Vermont workers pay federal income tax using the 2026 brackets: 10% on the first $11,925 of taxable income (single), 12% up to $48,475, 22% up to $103,350, 24% up to $197,300, 32% up to $250,525, 35% up to $626,350, and 37% on income above that. The standard deduction is $15,000 for single filers and $30,000 for married filing jointly in 2026.
All workers in Vermont pay Social Security tax at 6.2% on wages up to $176,100 (2026) and Medicare tax at 1.45% on all wages. An additional 0.9% Medicare surtax applies to wages over $200,000 for single filers. These federal payroll taxes apply uniformly regardless of which state you live in.
Pre-tax deductions reduce your taxable income for both federal and state purposes. Contributing to a 401(k) (up to $24,500 in 2026, plus $8,000 catch-up if 50+) lowers both your federal and VT state tax bill. Health Savings Account (HSA) contributions ($4,300 individual, $8,550 family in 2026) are also pre-tax. Review your W-4 withholding: if you receive a large refund each year, you may be overwithholding, which means less money in each paycheck. The Tax Bracket Calculator shows your federal marginal and effective rates.
Vermont has a progressive income tax from 3.35% to 8.75%, among the highest in New England. The state's rural character means lower housing costs than Boston or New York, but energy costs are high. Burlington is the primary economic center, with healthcare, education, and tourism as major industries.
Vermont's combination of high income tax and relatively high property taxes means your total tax burden is among the highest in the region. Compare your take-home pay with neighboring New Hampshire (no income tax) using the state calculators to see the actual dollar difference at your income level.