How to Use This Calculator
Enter your income, filing status, and any deductions. The calculator computes your Vermont state income tax alongside your federal tax, showing exactly how much goes to each and what you take home.
The most useful thing to try? Compare different income levels to see how Vermont's brackets affect your tax bill, then look at how combined federal + state taxes shape your total take-home pay.
Here's what each field means:
Annual Income is your total earnings before any taxes. Include wages, freelance income, investment income, and any other sources.
Filing Status determines which set of tax brackets and deductions apply. Vermont uses filing statuses similar to the federal system — single, married filing jointly, married filing separately, and head of household.
Vermont Income Tax: What You Need to Know
Vermont uses a progressive income tax system with rates ranging from 3.35% to 8.75%. Like the federal system, this means your income is taxed in layers — each bracket only applies to the income within that range, not your entire income.
Vermont Tax Brackets (Single Filers)
| Taxable Income | Tax Rate |
|---|---|
| $0 - $45,400 | 3.35% |
| $45,400 - $110,050 | 6.6% |
| $110,050 - $229,550 | 7.6% |
| $229,550+ | 8.75% |
Married Filing Jointly
| Taxable Income | Tax Rate |
|---|---|
| $0 - $75,850 | 3.35% |
| $75,850 - $183,400 | 6.6% |
| $183,400 - $279,450 | 7.6% |
| $279,450+ | 8.75% |
A Real Example
Let's say you're a single filer earning $80,000 in Vermont. After applying the standard deduction of $7,050, your income flows through each bracket:
Your approximate Vermont state income tax would be around $3,800, for an effective state tax rate of about 4.8%.
Remember, this is just the state portion. You'll also owe federal income tax and FICA taxes on top of this.
Deductions and Exemptions
Standard Deduction: Vermont offers a standard deduction of $7,050 for single filers and $14,150 for married couples filing jointly.
Vermont standard deduction, personal exemptions. Social Security is fully exempt. Vermont EITC (38% of federal), child and dependent care credit, and a renter rebate program for lower-income residents.
Local Taxes
No local income taxes in Vermont.
What's Unique About Vermont
Vermont has a four-bracket progressive system with a top rate of 8.75% — one of the higher rates in the country. Vermont bases its tax on federal taxable income and then applies its own rates and deductions. The state has its own standard deduction amounts that are lower than federal. Vermont does not tax Social Security benefits. The state offers a generous earned income tax credit (38% of federal EITC) and a child tax credit. Vermont's high rates reflect its investment in social services, education, and environmental programs.
Recent Changes
Vermont has been expanding its social credits while keeping rates stable. Bracket thresholds are adjusted annually for inflation.
How to Use This Calculator Strategically
Model a raise or job change. See how additional income moves through Vermont's brackets and affects your effective tax rate.
Compare filing statuses. If you're married, run the numbers both jointly and separately. The better option depends on your specific income situation.
Plan your deductions. Test how maximizing retirement contributions or other deductions affects your Vermont tax bill.
Evaluate a move. Compare Vermont's rates to other states you're considering. The difference in take-home pay might surprise you.
References
- Vermont Department of Taxes. (2025). Personal Income Tax.
This calculator is for educational purposes only and does not constitute tax or financial advice. Tax rates, brackets, and rules change regularly. Consult a qualified tax professional for guidance specific to your situation.