How Vermont taxes your paycheck
Vermont taxes 2026 wages in four steps: 3.35%, 6.6%, 7.6% and 8.75%. For a single filer, the 3.35% rate covers the first $50,750 of taxable income. For married couples filing together, it covers the first $84,700.
Before the rates apply, you subtract a standard deduction and a personal exemption. For 2025 they were $7,650 for single filers, $15,300 for couples, and $5,300 for each person in the household. The 2026 amounts weren't out yet when we checked. Vermont has no local income tax.
For example, a single person earning $55,000 subtracts $7,650 and $5,300, leaving $42,050. At 3.35%, the Vermont tax is about $1,409 for the year. Some employers also take up to 0.11% of pay for the state's Child Care Contribution.
Vermont tax rates and rules for 2026
Vermont has graduated rates from 3.35% to 8.75%.
| Taxable income | Rate |
|---|---|
| $0 to $50,750 | 3.35% |
| $50,750 to $122,850 | 6.6% |
| $122,850 to $256,300 | 7.6% |
| Over $256,300 | 8.75% |
| Taxable income | Rate |
|---|---|
| $0 to $84,700 | 3.35% |
| $84,700 to $204,750 | 6.6% |
| $204,750 to $312,050 | 7.6% |
| Over $312,050 | 8.75% |
| Taxable income | Rate |
|---|---|
| $0 to $42,350 | 3.35% |
| $42,350 to $102,375 | 6.6% |
| $102,375 to $156,025 | 7.6% |
| Over $156,025 | 8.75% |
| Taxable income | Rate |
|---|---|
| $0 to $68,000 | 3.35% |
| $68,000 to $175,500 | 6.6% |
| $175,500 to $284,150 | 7.6% |
| Over $284,150 | 8.75% |
- Starts from
- Wages after pre-tax deductions
- 401(k) contributions
- Lower your state taxable wages
- Standard deduction
- $7,650 single, $15,300 married filing jointly, $7,650 married filing separately, $11,450 head of household
- Exemption
- $5,300 per filer ($10,600 for a joint return); plus $5,300 per dependent
Local taxes
No local income tax on wages.
What this estimate leaves out
- Uses the 2025 standard deduction and $5,300 personal exemption; the 2026 amounts weren't published when checked.
- The 2026 brackets are the Department of Taxes' preliminary rates and could change slightly.
- If federal adjusted gross income is over $150,000, Vermont tax can't be less than 3% of that income. This estimate doesn't apply that minimum.
- Employers may withhold up to 0.11% of wages for Vermont's Child Care Contribution. It's the employer's choice, so this estimate leaves it out.
- Leaves out the extra deduction for filers 65 or older or blind, the child tax credit for young children, the earned income credit and other credits.
Frequently asked questions
What are Vermont's income tax rates for 2026?
There are four: 3.35%, 6.6%, 7.6% and 8.75%. Each applies only to the part of taxable income in its bracket. The top rate starts at $256,300 for single filers and $312,050 for couples.
Is there local income tax in Vermont?
No. Vermont towns and cities don't tax wages.
What is the Child Care Contribution on my Vermont pay stub?
It's a 0.44% payroll tax employers pay to fund child care. Your employer may choose to pass up to a quarter of it to you, which is 0.11% of your wages. If it does, you'll see it on your pay stub.
Does Vermont have paid family leave deductions?
Not a required one. Vermont's family and medical leave insurance is voluntary: employers can choose to offer it, and some people can sign up on their own. If you're covered, any premium shows on your pay stub.
Does a 401(k) lower my Vermont tax?
Yes. Vermont starts from your federal adjusted gross income, which already leaves out traditional 401(k) and 403(b) contributions and pre-tax health premiums.
Sources
- Vermont Department of Taxes: 2026 Form IN-114 instructions (2026 preliminary rate schedules)
- Vermont Department of Taxes: Filing Season FAQs (2025 standard deduction and personal exemption)
- Vermont Department of Taxes: Child Care Contribution
- 32 V.S.A. § 5822: minimum tax above $150,000 of federal AGI
- Office of the Governor: voluntary Vermont Family and Medical Leave Insurance
Figures checked 2026-10-25. The federal side uses the same 2026 rules as the main paycheck calculator, where the formula and method are explained. Found a problem? Tell us.