Vermont Income Tax Calculator 2026

Calculate your Vermont state income tax for 2026. Vermont uses a progressive tax system with rates up to 8.75%.

By Konstantin Iakovlev · Updated October 19, 2026 · Methodology

Gross Annual Incomeⓘ

Filing Statusⓘ

Deduction

Federal Income Tax

$7,670.00

Effective Tax Rate

10.23%

Marginal Tax Rate

22%

FICA (SS + Medicare)

$5,737.50

Total Tax Burden

$15,846.83

After-Tax Income

$59,153.18

Tax Calculation Breakdown

Gross Income	$75,000.00
Above-the-Line Deductions	- $0.00
Adjusted Gross Income (AGI)	$75,000.00
Standard Deduction	- $16,100.00
Taxable Income	$58,900.00
10% on $0.00 – $12,400.00	$1,240.00
12% on $12,400.00 – $50,400.00	$4,560.00
22% on $50,400.00 – $105,700.00	$1,870.00
Federal Income Tax (before credits)	$7,670.00
Federal Income Tax (after credits)	$7,670.00
Social Security (6.2%)	$4,650.00
Medicare (1.45%)	$1,087.50
Total FICA	$5,737.50
Vermont Taxable Income	$61,950.00
Vermont Income Tax	$2,439.33
Total Tax	$15,846.83
After-Tax Annual Income	$59,153.18
Monthly Take-Home	$4,929.43

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

Vermont Income Tax Overview

Vermont assesses its own income tax alongside the federal one, and the two run on separate tracks. The state uses a graduated structure of four brackets, with the rate stepping up as income rises and reaching a top marginal 8.75% on the highest band. Rather than copying federal numbers, Vermont applies its own standard deduction, $7,650 for a single filer, plus a separate personal exemption, so your Vermont taxable income generally won't match the figure on your federal return.

Because the rates climb in tiers, 8.75% touches only income above the top threshold, never your first dollar. Most filers pass through the lower brackets and settle at an effective rate noticeably below the ceiling. The Vermont Department of Taxes runs the system, and residents file a state return each spring next to their federal one. Vermont also offers an earned income tax credit set at 38% of the federal credit, a generous match that directly cuts the bill for lower- and moderate-income households, so the tax owed and the credit claimed both feed into the same return.

Vermont Income Tax Brackets 2026 (Single Filer)

Taxable Income	Rate
$0 – $50,750	3.35%
$50,750 – $122,850	6.6%
$122,850 – $256,300	7.6%
Over $256,300	8.75%

Vermont Tax Snapshot

State Sales Tax	6.00%
Avg. Combined Sales Tax (with local)	6.43%
Avg. Property Tax	1.40%
Minimum Wage	$14.42/hr
Estate Tax	Yes (exemption: $5,000,000)

Official Sources:

Vermont Income Tax FAQ

Who owes Vermont income tax?

Full-year residents owe it on their total taxable income, and nonresidents owe it on income tied to Vermont sources, such as a job physically located in the state. Part-year residents are taxed on what they received while living in Vermont. The Vermont Department of Taxes sets the filing thresholds and processes returns each spring alongside the federal filing.

When does the 8.75% top rate kick in?

Vermont's 8.75% rate applies only to the portion of taxable income that falls in the highest of its four brackets. Everything below that cutoff is taxed at the lower graduated rates, so the rate is marginal, not a flat charge on your whole income. Even a high earner pays 8.75% on just the top slice, leaving a blended effective rate below the headline.

How is Vermont income tax different from my federal tax?

It is entirely separate and calculated independently. The IRS applies federal brackets first, then Vermont applies its own rates to Vermont taxable income, which uses the state's $7,650 single standard deduction and personal exemption rather than the federal amounts. You file two returns, and the state tax owed does not reduce your federal liability.

Does Vermont give credits that lower the tax?

Yes. Vermont's earned income tax credit equals 38% of the federal EITC and directly reduces the bill for qualifying lower- and moderate-income workers. The state also runs income-sensitive property tax adjustments that are claimed through the same income tax return, so credits like these can pull a household's effective rate well below the bracket schedule.