VT

Vermont Paycheck Calculator

See exactly what you take home after federal taxes, Vermont state income tax, Social Security, and Medicare. Updated for 2026.

State tax: 8.75% SS: 6.2% Medicare: 1.45% 2026 brackets
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1099 freelancer note: You owe both halves of Social Security & Medicare — that's 15.3% self-employment tax on top of income tax. Quarterly estimated payments due Apr 15, Jun 16, Sep 15, Jan 15.
Vermont state income tax (2026) Vermont top rate is 8.75% for income over $213,150.
Rates from 3.35% to 8.75% (over $213,150 single)

Vermont Income Tax Explained (2026)

Vermont has a state income tax with a progressive (3.35%–8.75%) structure. Workers earning typical wages generally pay an effective state rate between 4.4% and 8.8% depending on income and deductions. Understanding how Vermont's tax works helps you accurately predict your take-home pay and plan your withholding.

Vermont residents also pay federal income tax (10%–37%), Social Security (6.2% up to $184,500), and Medicare (1.45%). The combination of federal and state taxes is the primary driver of the gap between your gross pay and your actual paycheck.

How Vermont compares to neighboring states

New Hampshire
No income tax
Zero tax
Massachusetts
5% flat
Lower
New York
Up to 10.9%
Higher top rate
Maine
Up to 7.15%
Lower

What taxes come out of a Vermont paycheck?

A Vermont W-2 employee's paycheck is reduced by federal income tax (progressive 10%–37%), Vermont state income tax (progressive (3.35%–8.75%)), Social Security at 6.2% on wages up to $184,500, and Medicare at 1.45% on all wages. High earners above $200,000 also pay an additional 0.9% Medicare surtax on excess wages.

Vermont freelancers and 1099 contractors pay self-employment tax of 15.3% — covering both employee and employer portions of Social Security and Medicare — on top of both federal and state income taxes. Half of the self-employment tax is deductible from federal adjusted gross income, reducing the effective burden slightly. Vermont freelancers must also make quarterly estimated state tax payments.

Vermont tax tips for 2026

  • High top rate: Vermont's 8.75% top rate kicks in at $242,200 for single filers (2026). Most middle-income workers pay the 6.6% or 7.6% rate on much of their income.
  • Standard deduction: Vermont conforms to federal standard deductions ($13,850 single / $27,700 married in 2026).
  • Retirement income: Vermont taxes Social Security income for higher earners but provides an exemption for residents with AGI below $65,000 (single) / $85,000 (married).
  • Estimated taxes: Vermont requires quarterly estimated payments if you expect to owe more than $500. Use Vermont Form IN-114.

Frequently asked questions

Vermont has four progressive brackets: 3.35% on the first $44,950 of taxable income (single), 6.6% on $44,951–$109,200, 7.6% on $109,201–$242,200, and 8.75% on income above $242,200. For a $75,000 earner, income spans the 3.35% and 6.6% brackets, resulting in an effective state rate of approximately 5–5.5%.
For a single filer earning $75,000 in Vermont in 2026, after the ~$13,850 standard deduction, taxable income is ~$61,150. Applying the brackets, state tax is approximately $3,500–$3,800. Combined with federal tax (~$10,294), Social Security ($4,650), and Medicare ($1,088), total deductions are ~$19,832. Take-home is approximately $55,168/year or ~$2,122 bi-weekly.
Vermont taxes Social Security benefits for higher-income residents but provides a full exemption for those with AGI below $65,000 (single) or $85,000 (married). Above those thresholds, Vermont taxes the federally taxable portion of Social Security at regular income tax rates. This exemption protects most moderate-income retirees from Vermont Social Security taxation.
Vermont supports extensive public services including strong public education funding, universal health care programs (Vermont was the first state to offer near-universal healthcare access), and environmental programs. Vermont's relatively small and wealthy population means a higher per-capita tax burden to fund these services. Vermont consistently ranks among the highest quality of life states, which many residents feel justifies the tax burden.
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