Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and Vermont state tax rates. Always consult a qualified tax professional.
Vermont income tax overview
Vermont has a progressive income tax with a top rate of 8.75%, among the higher rates in the country, applied across four brackets. Vermont's small population and rural character mean the state relies heavily on income and property tax revenue, since there is limited large-scale commercial or industrial activity to draw from compared to more populous states. Vermont taxes Social Security for higher-income residents but exempts it for those below certain income thresholds. The state is known for its strong public school funding and quality of life metrics, which residents and policymakers generally view as justifying the higher tax burden. Vermont's appeal to remote workers seeking a rural lifestyle has grown, even as the state's tax rates remain among the highest in New England.
2026 Vermont income tax rates
Tax rate
Income range (single filer)
3.35%
$0 – $45,400
6.6%
$45,401 – $110,050
7.6%
$110,051 – $229,550
8.75%
Over $229,550
Worked example: $75,000 salary in Vermont
A $75,000 salary in Vermont results in approximately $4,455 in state income tax (effective ~5.9%), plus $12,580 federal tax, $4,650 Social Security, and $1,088 Medicare. Annual take-home is approximately $52,227, or $2,009 bi-weekly.
Key facts: 8.75% top rate (applies above $229,550) · Social Security exempt below income thresholds · Strong public school funding
Frequently asked questions — Vermont income tax
Vermont exempts Social Security benefits for taxpayers with AGI below certain thresholds (around $50,000 single, $65,000 married), with partial taxation above those levels.
Vermont's top rate of 8.75% only applies above $229,550 of taxable income, meaning most residents — including high earners by typical standards — pay the lower 6.6% or 7.6% brackets rather than the top rate.
No. Vermont municipalities do not levy local income taxes, though local property taxes vary significantly to fund public schools.
Vermont's standard deduction for 2026 is approximately $7,500 for single filers, lower than the federal $15,000 amount.
Vermont's tax burden is dramatically higher than New Hampshire's, which has no wage income tax at all — a significant contrast for residents along the shared border who can choose where to establish residency.
Compare Vermont to other states
Use our US income tax calculator to compare your take-home pay across all 50 states. You may be surprised how much location affects your net income.