Vermont paycheck guide
How Vermont calculates income tax in 2026
Vermont begins with federal adjusted gross income, then subtracts its own standard deduction and personal exemptions rather than the federal ones. For a single filer the figures on this page use a $7,650 standard deduction and a $5,400 exemption, and a married couple filing jointly gets $15,300 and two exemptions, $10,800 in all.
Taxable income then runs through four brackets. For a single filer, the first $50,750 is taxed at 3.35%, income up to $122,850 at 6.6%, income up to $256,300 at 7.6%, and everything above at 8.75%. The jump from 3.35% to 6.6% nearly doubles the rate, and it lands in the middle of the income range, where many Vermont salaries sit.
Because Vermont starts from federal AGI, traditional 401(k), HSA, and pre-tax health premiums lower your Vermont tax as well as your federal tax. Once a single filer's Vermont taxable income passes $50,750, each of those dollars saves 6.6% in Vermont.
Worked example: $75,000 in Burlington or Montpelier
Subtract the $7,650 standard deduction and the $5,400 exemption from $75,000, leaving $61,950 of Vermont taxable income. The first $50,750 at 3.35% produces $1,700. The remaining $11,200 falls in the 6.6% bracket and adds $739. The Vermont bill is $2,439, or 3.25% of salary.
On the federal return, the $16,100 standard deduction leaves $58,900 taxable, and the 10%, 12%, and 22% brackets produce $7,670 of tax. Payroll taxes for Social Security ($4,650) and Medicare ($1,088) come out as well.
That leaves $59,153 a year, $4,929 a month, or $2,275 per biweekly check. The Vermont $75,000 salary breakdown shows the weekly and semimonthly versions. A married couple on the same income pays only $1,638 to Vermont, because their wider 3.35% bracket covers all of their taxable income.
Payroll extras and withholding with Form W-4VT
Vermont employers use Form W-4VT, the state's own certificate, to set state withholding. Fill it out separately from the federal W-4, and update it after marriage, a new child, or a second job. Vermont has no city or town income tax; local option taxes in places like Burlington apply to sales, meals, and lodging, not wages.
Since July 2024, Vermont has charged a Child Care Contribution on wages to fund child care programs. Employers pay it and may withhold part of it from employee pay, so you may see a small line for it on your stub. Our estimate does not include it.
Vermont has no reciprocity agreements. A New Hampshire resident who works in White River Junction or Brattleboro owes Vermont tax on those wages and files Form IN-111 as a nonresident. A Vermont resident who works in Lebanon or Hanover, New Hampshire, owes Vermont tax on the whole paycheck, since New Hampshire collects nothing to credit.
Vermont against New Hampshire, New York, and Massachusetts
At $75,000, Vermont is cheaper than two of its three neighbors. A single filer keeps $1,014 more in Vermont than in New York and $991 more than in Massachusetts. New Hampshire, with no tax on wages, leaves $61,592, or $2,439 more than Vermont. See New Hampshire vs Vermont for the Upper Valley decision many households face.
The picture shifts at higher pay. Massachusetts keeps a flat 5% for most earners, while Vermont's 6.6% and 7.6% brackets push the effective rate to 5.02% at $150,000 and 6.05% at $250,000. Compare Massachusetts vs Vermont and New York vs Vermont at your own salary.
Why Vermont's ranking drops as income rises
Vermont's exemption and standard deduction keep the bill low for modest earners: $568 at $30,000 and $1,238 at $50,000. Once taxable income clears $50,750, though, every extra dollar costs 6.6%, nearly double the first rate.
That is why Vermont slips from 21st at $75,000 to 40th at $150,000 in our ranking, where a single filer pays $7,530. A raise from $75,000 to $100,000 adds $1,650 to the Vermont bill, which climbs from $2,439 to $4,089.
What to expect at your income
Earning under $50,000
Under $50,000, Vermont's $7,650 standard deduction and $5,400 exemption shelter the first slice of a single filer's wages, and the rest is taxed at 3.35%. The bill is $568 at $30,000 and $1,238 at $50,000, leaving take-home of $25,717 and $41,117. A full-time job at $41,600 a year nets $34,650 after $956 to Vermont. Vermont's earned income tax credit is a refundable add-on to the federal credit, so claim both if you qualify.
Earning $50,000 to $150,000
This is where Vermont's 6.6% bracket does its work. A single filer at $100,000 pays $4,089 to Vermont and takes home $75,091, about $6,258 a month; at $150,000 the bill is $7,530 and take-home $106,261. Each pre-tax 401(k) dollar here saves 6.6% or 7.6% in Vermont plus 22% or 24% federally. Married couples stay in the 3.35% bracket much longer.
Earning over $150,000
Above $150,000 Vermont's 7.6% bracket applies to most added income, and the 8.75% rate starts above $256,300 of taxable income for a single filer. At $250,000 a single filer pays $15,130 to Vermont, an effective 6.05%, and takes home $168,052. High earners near the New Hampshire line may weigh a move across the river, but Vermont still taxes wages earned for work done in Vermont.
Vermont paycheck tips
Fill out Form W-4VT, not just the federal W-4
Vermont withholding comes from W-4VT. If you only update the federal form after a life change, your state withholding can drift out of line with your actual Vermont tax.
Use the VT529 credit
Contributions to Vermont's 529 plan earn a state income tax credit up to an annual limit per beneficiary. It reduces tax when you file, not in your paychecks.
New Hampshire residents: have Vermont tax withheld
If you live in New Hampshire and work in Vermont, make sure your employer withholds Vermont tax. Your home state collects no wage tax, so nothing at home offsets a Vermont balance due.
Fill the 6.6% bracket with pre-tax savings
Single filers whose Vermont taxable income tops $50,750 pay 6.6% on their top dollars. Moving pay into a traditional 401(k) or HSA saves that rate on top of federal tax.
Claim the credit for tax paid to New York or Massachusetts
Vermont residents who work across the line in New York or Massachusetts pay nonresident tax there, then claim Vermont's credit for taxes paid to another state on Schedule IN-117.
Common mistakes
Budgeting a raise at the 3.35% rate
Above $50,750 of taxable income, new Vermont dollars are taxed at 6.6%. A raise from $75,000 to $100,000 adds $1,650 to Vermont tax, not the smaller figure the first bracket suggests.
Assuming a New Hampshire address avoids Vermont tax
Living in New Hampshire protects wages earned in New Hampshire only. Work done in Vermont is taxed by Vermont no matter where you sleep.
Missing the Child Care Contribution on your stub
The employee share is small and may show under an unfamiliar label. It is a payroll contribution, not income tax withholding, so it will not appear as a credit on your Vermont return.
Moving to or from Vermont
Moving to Vermont
Moving to Vermont from New Hampshire adds state tax of $2,439 a year on $75,000, but coming from New York or Massachusetts lowers it by $1,014 or $991. Expect Form W-4VT on your first day, a Child Care Contribution line on your stub, and a part-year resident return for the year you arrive. Higher earners should model their salary, since Vermont's 6.6% and 7.6% brackets bite harder above $100,000.
Leaving Vermont
Leaving Vermont for New Hampshire raises take-home on $75,000 from $59,153 to $61,592, and the gain grows with income. A move to New York or Massachusetts costs about $1,014 or $991 more at that salary. Vermont taxes you as a part-year resident on income earned while you lived there, so file Form IN-111 for the year you leave and keep records of your move date.