Vermont income tax brackets for 2026
Vermont taxes wages at rates from 3.35% to 8.75%. The rates apply to taxable income: your wages after pre-tax deductions and the deductions and exemptions shown below.
| Single: taxable income | Rate |
|---|---|
| Up to $50,750 | 3.35% |
| $50,750 to $122,850 | 6.6% |
| $122,850 to $256,300 | 7.6% |
| Over $256,300 | 8.75% |
| Married filing jointly: taxable income | Rate |
|---|---|
| Up to $84,700 | 3.35% |
| $84,700 to $204,750 | 6.6% |
| $204,750 to $312,050 | 7.6% |
| Over $312,050 | 8.75% |
Deductions, exemptions and credits
| Standard deduction | $7,650 single · $15,300 married |
|---|---|
| Personal exemption | $5,400 single · $10,800 married |
| Dependent exemption | $5,400 each |
- Vermont has four brackets from 3.35% to 8.75%, and taxpayers with income over $150,000 pay at least 3% of their federal adjusted gross income.
- Since July 2024 employers may withhold up to 0.11% of wages for the Child Care Contribution.
Not fully confirmed: Vermont's 2026 brackets are worked out from its 2026 withholding tables, and the standard deduction shown is the 2025 amount; neither could be confirmed with the Vermont Department of Taxes.
Vermont payroll deductions
Besides income tax, Vermont requires these contributions from employees in 2026. The calculator includes them automatically.
| Program | Employee rate | Applies to |
|---|---|---|
| Child Care Contribution (employee share) | 0.11% | All wages |
- VT Child Care: The 0.44% contribution on wages is mainly paid by employers; they may withhold up to a quarter of it, 0.11%, from employees.
Local income taxes in Vermont
Vermont towns do not tax wages.
Example: $60,000 salary in Vermont
A single filer earning $60,000 a year, paid every two weeks, with a standard 2026 W-4 and no 401(k) or health deductions:
| Every two weeks | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $60,000.00 |
| Federal income tax | -$193.08 | -$5,020.00 |
| Social Security (6.2%) | -$143.08 | -$3,720.00 |
| Medicare (1.45%) | -$33.46 | -$870.00 |
| Vermont income tax | -$60.49 | -$1,572.83 |
| VT Child Care | -$2.54 | -$66.00 |
| Take-home pay | $1,875.05 | $48,751.18 |
Vermont income tax is about $1,572.83 a year here, 2.62% of gross pay. All taxes together take 18.7% of pay. Federal withholding is the 2026 single schedule: $60,000 less the $8,600 allowance gives $51,400, taxed at $1,240 plus 12% above $19,900, or $5,020 a year.
Take-home pay in Vermont at different salaries
Yearly take-home pay for a single filer in Vermont, paid every two weeks, with no pre-tax deductions or local tax. For a married couple filing jointly on $120,000, take-home pay is about $97,203 a year (19% in taxes).
| Salary | Vermont tax | Take-home per year | Per paycheck |
|---|---|---|---|
| $30,000 | $601 | $25,684 | $987.85 |
| $45,000 | $1,120 | $37,218 | $1,431.45 |
| $60,000 | $1,639 | $48,751 | $1,875.05 |
| $80,000 | $2,857 | $62,253 | $2,394.33 |
| $100,000 | $4,199 | $74,981 | $2,883.87 |
| $150,000 | $7,695 | $106,096 | $4,080.60 |
| $250,000 | $15,405 | $167,777 | $6,452.95 |
The Vermont tax column includes state payroll contributions as well as income tax.
How the Vermont paycheck estimate works
Federal income tax follows IRS Publication 15-T for 2026: your paycheck is annualized, an allowance for the standard deduction is taken off, the 2026 withholding schedule for your filing status is applied, and W-4 credits and extra withholding are added back per paycheck. Social Security is 6.2% of wages up to $184,500 and Medicare 1.45%, plus 0.9% on wages over $200,000.
Vermont tax is estimated for the whole year: wages after pre-tax deductions, less the standard deduction, less exemptions, run through the brackets above, then divided by the number of paychecks.
Vermont tax = Brackets(Wages − pre-tax deductions − standard deduction − exemptions)