Vermont Income Tax Calculator
Calculate your total tax burden in Vermont. See VT state income tax (8.75% top rate), federal tax, and FICA combined. Free, instant, private.
The state of Vermont uses 4 progressive income tax brackets up to 8.75% in 2026. State standard deduction: $7,000 single / $14,050 married. Stacks on federal tax (10%-37% across 7 brackets) and FICA (Social Security 6.2%, Medicare 1.45%). Property tax averages 1.83% and combined sales tax averages 6.24%. Four brackets to 8.75%. High property taxes (1.83%). Estate tax ($5M). VT business/farm capital gains exclusion.
Vermont Income Tax Calculator
Pre-filled with Vermont median: $63,477
Your Total Tax Burden
$12,687
Take-Home: $50,790 · Effective Rate: 20.0%
Federal Tax
$5,579
8.8% eff.
VT State Tax
$2,252
3.5% eff.
FICA
$4,856
7.6% eff.
Take-Home
$50,790
80.0% kept
Tax Breakdown
Vermont Tax Bracket Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $63,477.00 | $5,289.75 |
| Federal Income Tax | -$5,578.94 | -$464.91 |
| Vermont State Tax | -$2,251.98 | -$187.67 |
| Social Security (6.2%) | -$3,935.57 | -$327.96 |
| Medicare (1.45%) | -$920.42 | -$76.70 |
| Take-Home Pay | $50,790.09 | $4,232.51 |
Marginal Tax Rate
8.75%
VT state only
Effective Tax Rate
20.0%
All taxes combined
Vermont Tax System Overview
Vermont has four brackets from 3.35% to 8.75%. Property taxes among the highest at 1.83%. Estate tax with $5M exemption. 40% exclusion on VT business/farm capital gains.
Vermont Income Tax Brackets (Single)
| Tax Rate | Income Range |
|---|---|
| 3.35% | $0 – $45,400 |
| 6.6% | $45,400 – $110,050 |
| 7.6% | $110,050 – $229,550 |
| 8.75% | $229,550 – and above |
Top Income Tax
8.75%
Property Tax
1.83%
Sales Tax (Avg)
6.24%
Median Income
$63,477
Other Taxes in Vermont
Capital Gains Tax
40% exclusion on VT business/farm gains up to $350K
Property Tax
Average effective rate of 1.83%. On a $300,000 home, this equals approximately $5,490 per year, or $458 per month.
Sales Tax
State rate of 6%, with a combined average of 6.24% including local taxes.
Estate & Inheritance Tax
Vermont has a state estate tax in addition to the federal estate tax. The exemption may be lower than the federal threshold.
Filing Tips for Vermont
High rates make pre-tax contributions important. Use 40% capital gains exclusion on VT business/farm sales. EITC at 38% of federal. Homeowner and Renter Rebate programs offset property taxes.
- Maximize pre-tax contributions to 401(k) ($23,500 limit in 2026, $31,000 if 50+) to reduce both federal and VT state taxable income.
- Use an HSA if you have a high-deductible health plan. Contributions ($4,400 individual, $8,750 family) are pre-tax and reduce your tax burden.
- Review your W-4. If you regularly get large refunds, adjust your withholding to keep more money in each paycheck throughout the year.
Compare Vermont to Nearby States
If you lived in a neighboring state instead, here is how your state tax would change on $63,477 income:
| State | Top Rate | State Tax | Difference |
|---|---|---|---|
| Vermont | 8.75% | $2,252 | — |
| New Hampshire | None | $0 | Save $2,252 |
| Massachusetts | 5% | $3,174 | +$922 |
| New York | 10.9% | $2,886 | +$634 |
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Frequently Asked Questions
What is the income tax rate in Vermont?
Vermont has a progressive income tax with a top rate of 8.75%. Tax rates increase as income rises through various brackets. Four brackets to 8.75%. High property taxes (1.83%). Estate tax ($5M). VT business/farm capital gains exclusion.
How much state tax will I pay in Vermont on $63,477?
On income of $63,477 filing single in Vermont, you would pay approximately $2,252 in state income tax (effective rate of 3.5%). This is after the state standard deduction of $7,000.
Does Vermont tax capital gains?
40% exclusion on VT business/farm gains up to $350K. Capital gains treatment varies by state — some tax them as regular income while others offer exclusions or preferential rates.
How does Vermont compare to neighboring states for taxes?
Vermont's neighboring states include New Hampshire (no income tax), Massachusetts (5% top rate), New York (10.9% top rate). Property tax rates, sales taxes, and cost of living should also be considered when comparing overall tax burden. Use the calculator above to compare your specific tax liability across states.
What is the Vermont state income tax filing deadline for 2026?
Vermont state income tax returns are due April 15, 2026 (matching the federal deadline). If April 15 falls on a weekend or holiday, the deadline shifts to the next business day. Extensions: Vermont typically grants automatic 6-month extensions to October 15, 2026, but tax owed must still be paid by April 15 to avoid penalties.
Does Vermont tax retirement income, Social Security, and pensions?
Vermont taxes retirement income with state-specific exclusions. Social Security: only 11 states tax SS benefits in 2026 (CO, CT, KS, MN, MT, NM, RI, UT, VT, WV, MO partially); Vermont's treatment varies. Pensions and 401(k)/IRA withdrawals are generally taxable as ordinary income at 8.75% top rate, with possible exclusions for federal/military pensions or low-income seniors. Check Vermont's 2026 retirement income exclusion thresholds.
What deductions and credits are unique to Vermont in 2026?
Vermont offers standard deduction of $7,000 (single) / $14,050 (married). Additional state-specific items typically include: Vermont-specific tax credits (e.g., property tax credit, education credit, EITC supplement if available), retirement income exclusions, and state-conformity to federal deductions like SALT cap, mortgage interest, charitable contributions. Check Vermont's state tax form for the full list of state-specific credits in 2026.
If I work remotely in Vermont for an out-of-state employer, what tax do I pay?
As a Vermont resident working remotely for an out-of-state employer, the rules depend on reciprocity agreements. Reciprocity-pair states (PA-NJ, IL-IA, MI-OH, etc.) let you pay tax only to Vermont. Without reciprocity, you may pay tax to BOTH states, then claim a credit on Vermont's return for taxes paid to the work state. NY, PA-Philadelphia, and other "convenience of employer" jurisdictions can override these rules. Verify your employer's state tax setup.