Vermont tax summary for 2026
| Tax on wages | Graduated brackets |
|---|---|
| Starting point | Federal adjusted gross income |
| Rates (single) | 3.35% – 8.75% |
| Standard deduction | Single $7,650 · Married filing jointly $15,300 · Head of household $11,450 · Married filing separately $7,650 |
| Personal exemption | Single $5,300 · Married filing jointly $10,600 · Head of household $5,300 · per dependent $5,300 — a deduction from income |
| Federal income tax deduction | Not allowed |
| Employee payroll taxes | None |
| Local income taxes | None |
Vermont income tax brackets 2026
Rates apply to Vermont taxable income, after the deductions above.
| Rate | Single: income over | Married filing jointly: income over | Head of household: income over | Married filing separately: income over |
|---|---|---|---|---|
| 3.35% | $0 | $0 | $0 | $0 |
| 6.6% | $50,750 | $84,700 | $68,000 | $42,350 |
| 7.6% | $122,850 | $204,750 | $175,500 | $102,375 |
| 8.75% | $256,300 | $312,050 | $284,150 | $156,025 |
Worked example: $65,000, single, paid biweekly
Computed by the same engine as the calculator, with no pre-tax deductions.
| Line | Per paycheck | Annual |
|---|---|---|
| Gross pay | $2,500.00 | $65,000 |
| Federal income tax | $216.15 | $5,620 |
| Social Security | $155.00 | $4,030 |
| Medicare | $36.25 | $943 |
| Vermont income tax | $68.69 | $1,786 |
| Take-home pay | $2,023.91 | $52,622 |
Effective tax rate 19.0%; tax on the next dollar earned 26.3%. Vermont taxable income is $52,050.
Second example: $120,000, married filing jointly, two children
Take-home $102,383 a year ($3,937.80 biweekly). Federal income tax $5,640 after a $4,400 Child Tax Credit, Social Security and Medicare $9,180, Vermont income tax $2,797.
How the Vermont estimate is calculated
- Start from federal adjusted gross income — wages minus traditional 401(k) and Section 125 deductions.
- Subtract the Vermont standard deduction for your filing status. Subtract personal exemptions (dependents = the number of children you enter).
- Apply the brackets.
- Divide the annual total by your number of paychecks.
What this Vermont calculator does not model
- Minimum tax for AGI over $150,000: Vermont tax is the greater of the rate-schedule tax or 3% of AGI (less U.S. obligation interest)
- Additional standard deduction for age 65+ or blind ($1,250 for 2025)
- Vermont Earned Income Credit, Child Tax Credit, child and dependent care credit, renter credit
- Capital gains exclusion (40% up to $350,000) and other Vermont adjustments
- Child Care Contribution (0.11% of wages, withheld from employees) — see payroll data
- Part-year resident and nonresident apportionment
Data notes
- Brackets are the official '2026 Preliminary Vermont Tax Rates' published by the Department of Taxes in the 2026 IN-114 instructions (Rev. 10/25): single $50,750 / $122,850 / $256,300; MFJ $84,700 / $204,750 / $312,050; HOH $68,000 / $175,500 / $284,150 (HOH has its own schedule — the previous file wrongly used MFJ); MFS $42,350 / $102,375 / $156,025. Final 2026 rate schedules are published with the 2026 return booklet. The previous estimated brackets (2025 + ~2%) were replaced.
- OLD VALUES: the standard deduction ($7,650 single/MFS, $15,300 MFJ, $11,450 HOH) and personal exemption ($5,300) are the official TAX YEAR 2025 amounts; Vermont indexes them annually but had not published 2026 amounts as of 2026-10-07. The 2026 withholding allowance is $5,400/year (TaxTables-2026), which suggests a $5,400 2026 exemption, but withholding values are not used for liability.
- Rates 3.35% / 6.6% / 7.6% / 8.75% unchanged; 2026 legislation (Act 164, H.933) changed federal conformity but not rates.
- Vermont starts from federal AGI.
Sources
- State income tax: 2026 Form IN-114 Instructions – 2026 Preliminary Vermont Tax Rates (Schedules X, Y-1, Y-2, Z) (read 2026-10-07)
- State income tax: Vermont Department of Taxes – Filing Season FAQs (tax year 2025 standard deduction and personal exemption) (read 2026-10-07)
- State income tax: 2025 Vermont Tax Rate Schedules (comparison) (read 2026-10-07)
- State income tax: Vermont Department of Taxes – 2026 Legislative Highlights (Act 164: conformity only, no rate change) (read 2026-10-07)
Federal figures come from the IRS and SSA; see the methodology page.
Compare nearby and similar states
Neighboring states: Massachusetts, New Hampshire, New York
States with a similar tax setup: Rhode Island, Mississippi, California, New Mexico, Arkansas, South Carolina
See every state side by side in the salary comparison by state, or browse all state paycheck calculators.