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Vermont Paycheck Calculator

Vermont taxes wages on a graduated scale from 3.35 percent up to 8.75 percent.

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Estimates using federal brackets, FICA and your state rate. Not tax advice.

How Vermont state income tax works

Vermont uses a graduated income tax with a bottom rate of 3.35 percent and a top marginal rate of 8.75 percent in 2026. The schedule runs through several brackets, and most full-time workers at a typical salary settle into an effective rate around 6.6 percent once the lower brackets are factored in. Vermont does not impose a broad statewide local income tax on wages beyond the state schedule.

On a $65,000 salary, Vermont state income tax comes to about $4,290 per year using the 6.6 percent effective rate. Workers earning significantly more will have a larger share taxed at the upper brackets, pushing the effective rate higher. Vermont allows standard deductions and exemptions that can reduce taxable income below the gross salary figure, so your actual bill may be lower than the estimate.

The calculator applies federal tax brackets, Social Security and Medicare (FICA) withholding, and the Vermont rate you enter. Adjust the state rate field to test what a different effective rate would mean for your take-home pay, particularly if deductions or credits bring your taxable income down meaningfully.

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Vermont paycheck FAQs

What is the Vermont income tax rate for 2026?

Vermont has a graduated schedule running from 3.35 percent at the bottom to 8.75 percent at the top in 2026. The effective rate for a typical full-time worker is around 6.6 percent.

How much Vermont income tax will I owe on a $65,000 salary?

At the 6.6 percent effective rate, a $65,000 salary produces roughly $4,290 in Vermont state income tax before standard deductions and exemptions.

Does Vermont have a local income tax on wages?

Vermont does not impose a broad local income tax on wages at the city or county level, so the graduated state rate is the primary state obligation for most workers.