Vermont paycheck taxes at a glance
| State income tax | 3.35% to 8.75% (4 brackets) |
|---|---|
| Standard deduction | $7,650 single, $15,300 joint, $11,450 head of household |
| Personal exemption | $5,300 single, $10,600 joint |
| Per dependent | $5,300 exemption |
| Pre-tax deductions | 401(k), HSA and health premiums lower state tax too |
| Local income tax | None on wages |
| State payroll deductions | VT child care 0.11% |
| Reciprocity | None |
| Figures | Tax year 2025 (see note) |
Every paycheck also has federal income tax, Social Security (6.2% up to $184,500) and Medicare (1.45%), worked out with the same 2026 IRS figures as ourmain paycheck calculator.
Vermont income tax brackets
| Taxable income | Rate |
|---|---|
| $0 to $49,400 | 3.35% |
| $49,400 to $119,700 | 6.6% |
| $119,700 to $249,700 | 7.6% |
| Over $249,700 | 8.75% |
| Taxable income | Rate |
|---|---|
| $0 to $82,500 | 3.35% |
| $82,500 to $199,450 | 6.6% |
| $199,450 to $304,000 | 7.6% |
| Over $304,000 | 8.75% |
| Taxable income | Rate |
|---|---|
| $0 to $66,200 | 3.35% |
| $66,200 to $171,000 | 6.6% |
| $171,000 to $276,850 | 7.6% |
| Over $276,850 | 8.75% |
Vermont also has rules the brackets alone do not show (see the notes below); the calculator applies them.
Worked examples
A $60,000 salary in Burlington, single, paid every two weeks
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $2,307.69 | $60,000 |
| Federal income tax | − $193.08 | − $5,020 |
| Social Security and Medicare | − $176.54 | − $4,590 |
| Vermont income tax | − $60.62 | − $1,576 |
| VT child care | − $2.54 | − $66 |
| Take-home pay | $1,874.92 | $48,748 |
Single, paid every two weeks (26 paychecks). Vermont taxable income is $47,050 and the state tax is $1,576, an effective 2.627% of gross pay. After the standard deduction and one exemption, taxable income stays inside the 3.35% bracket, so the effective Vermont rate is well under 3%.
A $140,000 household in Montpelier, married filing jointly with two children
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $5,384.62 | $140,000 |
| 401(k) at 6% | − $323.08 | − $8,400 |
| Federal income tax | − $270.46 | − $7,032 |
| Social Security and Medicare | − $411.92 | − $10,710 |
| Vermont income tax | − $138.28 | − $3,595 |
| VT child care | − $5.92 | − $154 |
| Take-home pay | $4,234.95 | $110,109 |
Married filing jointly, 2 children, paid every two weeks (26 paychecks). Vermont taxable income is $95,100 and the state tax is $3,595, an effective 2.568% of gross pay. Four $5,300 exemptions and the joint standard deduction remove more than $36,000 before tax. The top slice of income is taxed at 6.6%.
The Child Care Contribution: up to 0.11%
Since July 1, 2024, Vermont employers pay a 0.44% Child Care Contribution on wages to fund the state’s child care programs. The law lets them deduct up to one quarter of it, 0.11%, from each employee’s pay, with no wage cap. Many employers choose to pay the whole amount themselves. The calculator assumes the full 0.11% employee share; if your pay stub shows no child care line, your take-home pay is slightly higher than shown. Self-employed people pay 0.11% on their own income.
Minimum tax over $150,000 of income
If your federal adjusted gross income is more than $150,000, Vermont tax is the greater of the normal rate-schedule tax and 3% of your AGI. For most people with only wage income the rate-schedule tax is already higher, so the minimum rarely changes anything. It can matter for large families or anyone with big deductions. The calculator checks both and uses the larger amount.
Credits this calculator leaves out
Vermont has a refundable Child Tax Credit of $1,000 for each child age six or younger, reduced by $20 for every $1,000 of AGI above $125,000. It also has a state earned income credit and a child and dependent care credit. These depend on the age of your children and your full return, so they are not included here; families with young children will usually owe less than shown. Traditional 401(k), HSA and cafeteria-plan deductions are excluded from Vermont income because Vermont starts from federal AGI.
Working across state lines
Vermont has no reciprocal agreements. If you live in Vermont and work in New Hampshire, New Hampshire takes no income tax, so Vermont taxes all of your wages. If you work in New York or Massachusetts, that state taxes the wages and Vermont gives a credit for the tax paid. Nonresidents who work in Vermont pay Vermont tax on the wages earned here.
Vermont payroll deductions besides income tax
- Child Care Contribution (employee share): Employers pay a 0.44% Child Care Contribution on all wages and may deduct up to one quarter of it, 0.11%, from your pay; many pay it all.
Vermont vs. neighboring states
Take-home pay on a $75,000 salary, single, no pre-tax deductions and no local tax:
| State | Income tax | State tax + programs | Take-home |
|---|---|---|---|
| Vermont | 3.35% to 8.75% (4 brackets) | $2,572 | $59,020 |
| New Hampshire | None on wages | $0 | $61,593 |
| Massachusetts | 5% to 9% (2 brackets) | $3,775 | $57,818 |
| New York | 3.9% to 10.9% (9 brackets) | $3,808 | $57,784 |
Where you work and where you live can both matter. See paycheck calculators for every state for the full comparison.