Your hub for Vermont taxes: state income tax (3.35% to 8.75%), plus free calculators for take-home pay, self-employment tax, quarterly estimates, and salary conversion.
Last updated: May 2026 · Data: IRS, BLS, Vermont Department of Taxes
Vermont levies a state income tax (3.35% to 8.75%) that is withheld from wages on top of federal tax and FICA. Vermont has four income tax brackets with a top rate of 8.75%. The state uses federal AGI as the starting point for state income tax calculations. Vermont also exempts a portion of Social Security benefits from taxation.
| Tax | 2026 Rate / Detail |
|---|---|
| Vermont State Income Tax | 3.35% to 8.75% |
| Vermont State Sales Tax (base) | 6% |
| Federal Income Tax | 10% to 37% (progressive brackets) |
| Social Security | 6.2% on first $176,100 |
| Medicare | 1.45% on all wages (plus 0.9% above $200,000) |
| Federal Standard Deduction (Single / MFJ) | $15,000 / $30,000 |
| Minimum Wage | $14.01 / hour |
| State Tax Authority | Vermont Department of Taxes |
Vermont has a state income tax. The 2026 rate is 3.35% to 8.75%. This applies on top of federal income tax and FICA (Social Security and Medicare) withheld from your pay.
For 2026, Vermont income tax is 3.35% to 8.75%. Vermont has four income tax brackets with a top rate of 8.75%. The state uses federal AGI as the starting point for state income tax calculations. Vermont also exempts a portion of Social Security benefits from taxation.
A Vermont paycheck has federal income tax, Vermont state income tax (3.35% to 8.75%), Social Security (6.2% up to $176,100), and Medicare (1.45%) withheld. Try the take-home pay calculator for a personalized net-pay estimate.
Yes. Self-employed workers in Vermont generally make quarterly estimated payments to the IRS and to the state if they expect to owe tax. The quarterly estimated tax calculator estimates each payment and the due dates.
The Vermont statewide base sales tax rate is 6%. Local jurisdictions may add their own rates on top of the state rate.