Vermont Income Tax Rates, Brackets, and Calculator for 2026
Vermont has four income tax brackets with income tax rates from 3.35% to 8.75% for 2026. Compare VT state tax at $75,000, $100,000, and other income levels. See how filing status changes the results and where Vermont ranks among states.
Vermont has four individual income tax brackets with rates from 3.35% to 8.75% for 2026. The preliminary 2026 schedule places the top rate above $256,300 of taxable income for Single and $312,050 for Married Filing Jointly. Vermont starts with federal adjusted gross income, then applies state adjustments, its own standard deduction, and personal exemptions. The 2026 tax year covers income earned from January 1, 2026 through December 31, 2026. For calendar-year filers, federal Form 1040 series returns and Vermont Form IN-111 returns are generally due April 15, 2027.
Vermont has used the same four rates since its 2018 income tax changes, with bracket thresholds adjusted annually for inflation. Married Filing Jointly brackets are wider than Single brackets, but they are less than twice as wide. That difference produces a marriage penalty in our equal-wage examples, even though both filing statuses reach the same 6.6% marginal rate. The calculations below use preliminary 2026 brackets and retain the published 2025 deductions and exemptions pending final 2026 annual-return confirmation.
Vermont's separate Child Care Contribution can also affect wages. Employers may withhold up to 0.11% of employee wages toward that payroll tax. It is excluded from the state income tax amounts below.
Tax Calculator
Vermont Income Tax Calculator for 2026
Enter annual household income and select a filing status to estimate Vermont income tax for 2026. Results open in our All 50 States income tax calculator with Vermont highlighted. The examples below provide a starting point, showing Vermont income tax for a Single filer earning $50,000 to $150,000 annually. The effective tax rate rises across these examples as more taxable income reaches the higher brackets. Vermont's national rank also rises because its tax increases faster across these examples than the tax in many other states.
How Much Will You Pay in Vermont?
| Household Income | State Tax | Marginal Rate | Effective Rate | State Rank |
|---|---|---|---|---|
| $50,000 | $1,241 | 3.35% | 2.48% | 18 |
| $75,000 | $2,446 | 6.6% | 3.26% | 21 |
| $100,000 | $4,096 | 6.6% | 4.10% | 29 |
| $125,000 | $5,746 | 6.6% | 4.60% | 36 |
| $150,000 | $7,538 | 7.6% | 5.03% | 40 |
2026 Vermont State Tax: Single filer, full-year resident, wages only, no dependents, and under age 65. Includes the $7,650 state standard deduction and $5,300 personal exemption retained from 2025, with no other adjustments or tax credits. The bracket thresholds come from Vermont's preliminary 2026 schedule. Federal, payroll, and local taxes are excluded.
2026 Vermont State Rank: Vermont ranks in the moderate to high income tax range nationally across these examples, moving from 18th at $50,000 to 40th at $150,000. The comparison includes all 50 states and the District of Columbia at the same income and filing status, with 1 representing the lowest effective rate. Rankings use unrounded figures. Equal rates share a rank. See the All 50 States income tax calculator for assumptions and sources.
Key takeaway: At $100,000 of annual income, a Single filer pays an estimated $4,096 in Vermont state income tax for 2026. The marginal tax rate is 6.6%, while the effective rate is 4.10% after the state standard deduction, personal exemption, and lower bracket rate are applied.
Tax Rates
Vermont Income Tax Rates
Vermont's four individual income tax rates are 3.35%, 6.6%, 7.6%, and 8.75% for 2026. Each filing status has its own bracket thresholds. Married Filing Jointly thresholds are wider than Single thresholds, while Married Filing Separately thresholds are half the joint amounts. Each rate applies only to the portion of taxable income within its bracket. Reaching a higher bracket does not cause all income to be taxed at the higher rate.
2026 Vermont Income Tax Brackets
| Bracket | Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
|---|---|---|---|---|---|
| 1 | 3.35% | $0 - $50,750 | $0 - $84,700 | $0 - $42,350 | $0 - $68,000 |
| 2 | 6.6% | $50,751 - $122,850 | $84,701 - $204,750 | $42,351 - $102,375 | $68,001 - $175,500 |
| 3 | 7.6% | $122,851 - $256,300 | $204,751 - $312,050 | $102,376 - $156,025 | $175,501 - $284,150 |
| 4 | 8.75% | $256,301+ | $312,051+ | $156,026+ | $284,151+ |
Vermont's 2018 changes reduced five brackets to four and established the current rates. State law adjusts the bracket thresholds annually for inflation. The first bracket increased from $49,400 to $50,750 for Single and from $82,500 to $84,700 for Married Filing Jointly between the 2025 schedule and the preliminary 2026 schedule. These increases allow more taxable income to remain at 3.35%.
A separate minimum-tax rule applies when federal adjusted gross income exceeds $150,000. At that point, Vermont compares the ordinary bracket calculation with a calculation based on 3% of federal AGI, subject to the adjustment for interest from U.S. obligations, and uses the larger amount before subsequent adjustments and credits. The threshold is the same for Single and Married Filing Jointly. See the Vermont minimum tax FAQ for how this differs from the regular brackets.
Compare States
Compare Vermont to Other States
The next table compares Vermont with the other New England states, plus New York and Pennsylvania, at $75,000 of annual income for a Single filer. The calculations use the same household assumptions and apply each state's deductions, exemptions, and credits. States appear from lowest to highest state income tax, with the difference measured against Vermont. The marginal rate identifies the tax bracket reached, while the effective rate is state income tax divided by $75,000 of household income, expressed as a percentage.
Vermont vs Other States at $75,000 of Income (2026)
| State Name | State Rank | Tax on $75K Income | Difference | Marginal Rate | Effective Rate |
|---|---|---|---|---|---|
| New Hampshire | 1 | $0 | −$2,446 | 0% | 0.00% |
| Rhode Island | 15 | $2,196 | −$250 | 3.75% | 2.93% |
| Pennsylvania | 19 | $2,303 | −$143 | 3.07% | 3.07% |
| Vermont | 21 | $2,446 | $0 | 6.6% | 3.26% |
| Maine | 40 | $3,385 | +$939 | 6.75% | 4.51% |
| New York | 43 | $3,453 | +$1,007 | 5.4% | 4.60% |
| Connecticut | 44 | $3,475 | +$1,029 | 5.5% | 4.63% |
| Massachusetts | 46 | $3,530 | +$1,084 | 5% | 4.71% |
2026 State Income Tax Comparison: Single filer, full-year resident, wages only, no dependents, and under age 65. A negative difference means less state income tax than Vermont. Differences are calculated before rounding to whole dollars. New Hampshire does not tax wage income. Federal, payroll, property, sales, and local taxes are excluded.
2026 State Rank: Compares all 50 states and the District of Columbia at $75,000 of income for a Single filer using unrounded effective rates, with 1 representing the lowest rate. Equal rates share a rank. The figures follow the state income tax calculator, including its disclosed prior-year inputs where final 2026 amounts are unavailable.
Key takeaway: At $75,000 of annual income, Vermont has less state income tax than its neighbors Massachusetts and New York, but more than New Hampshire. Vermont's estimated $2,446 tax is about $1,084 less than Massachusetts and $1,007 less than New York. Among the other states shown, Rhode Island is about $250 lower and Pennsylvania is $143 lower than Vermont.
Examples
Vermont Income Tax Calculation Examples
The goal of these examples is to compare Single and Married Filing Jointly statuses at the same $75,000 annual income per person. The Single example uses $75,000 of household income, while the Married Filing Jointly example assumes each spouse earns $75,000, for a combined $150,000. The results match our 2026 income tax calculator using $75,000 or $150,000 and the corresponding filing status.
To simplify the calculations, both examples assume full-year Vermont residency, W-2 wages only, no dependents, and taxpayers under age 65 who are not blind or claimed as dependents. Vermont starts with federal adjusted gross income and uses its own standard deduction and personal exemptions. These examples apply those state allowances, with no other deductions, Vermont additions or subtractions, or tax credits. The federal standard deduction is not subtracted separately from Vermont income. See the All 50 States calculator for a full list of assumptions and sources.
Vermont Filing Status Comparison (2026 Tax Year)
| Tax Metric | Single | Married Filing Jointly |
|---|---|---|
| Household Income | $75,000 | $150,000 |
| Standard Deduction | $7,650 | $15,300 |
| Personal Exemptions | $5,300 | $10,600 |
| Taxable Income | $62,050 | $124,100 |
| State Income Tax | $2,446 | $5,438 |
| Effective Tax Rate | 3.26% | 3.63% |
| Marginal Tax Rate | 6.6% | 6.6% |
The brackets come from Vermont's preliminary 2026 estimated-tax schedule. The $7,650/$15,300 standard deductions and $5,300 exemption per person are the published 2025 annual-return amounts retained in the calculator pending final 2026 confirmation. These examples calculate tax directly from the bracket rates and carry unrounded amounts through the final step. Results may differ slightly from Vermont's tax tables and rounded base-tax amounts.
Looking at the table above, both examples reach the same 6.6% marginal tax rate. However, two Single filers can each place $50,750 in the 3.35% bracket, for a combined $101,500. The married household receives only $84,700 in that lower bracket. The $16,800 difference is taxed at 6.6% instead of 3.35%, producing $546 more tax before rounding. This comparison therefore shows a Vermont marriage penalty, with a 3.63% effective rate for the married household compared with 3.26% for Single.
Vermont generally requires the state filing status to match the federal filing status. Married Filing Separately uses half the joint thresholds, so it does not restore the wider Single brackets. No marriage penalty credit or alternative state filing method offsets the bracket difference for the married couple in this example. The separate 3% minimum-tax rule does not apply because neither household's federal AGI exceeds $150,000. Next, we will review the step-by-step calculations for each filing status.
Step-by-Step Example 1: Single
For a single filer with $75,000 of household income, we first subtract the state standard deduction and personal exemption. Using the retained $7,650 deduction and $5,300 exemption leaves $62,050 of Vermont taxable income. That amount spans the first two brackets in the preliminary 2026 schedule.
- Vermont taxable income: Subtract the state standard deduction and personal exemption from household income. $75,000 − $7,650 − $5,300 = $62,050
- Tax on the first bracket: The first $50,750 is taxed at 3.35%. $50,750 × 0.0335 = $1,700.125
- Tax on the second bracket: Subtract $50,750 from $62,050, leaving $11,300 taxed at 6.6%. $11,300 × 0.066 = $745.80
- Estimated Vermont income tax: Add the tax from both brackets, then round to cents. $1,700.125 + $745.80 = $2,445.93, rounded
Vermont effective tax rate: $2,445.93 divided by $75,000 of household income equals 3.26%, rounded. The estimated state income tax rounds to $2,446 in the comparison table.
Vermont marginal tax rate: 6.6%, the rate applied to taxable income above $50,750 and up to $122,850 for Single in the preliminary 2026 schedule. Only the $11,300 within that bracket is taxed at 6.6% in this example.
Step-by-Step Example 2: Married Filing Jointly
Now let's apply the calculation to a married couple with each spouse earning $75,000, for a combined household income of $150,000. The retained joint standard deduction is $15,300, and two $5,300 personal exemptions total $10,600. After subtracting those amounts, the couple has $124,100 of Vermont taxable income.
- Vermont taxable income: Subtract the joint state standard deduction and both personal exemptions from household income. $150,000 − $15,300 − $10,600 = $124,100
- Tax on the first bracket: The first $84,700 is taxed at 3.35%. $84,700 × 0.0335 = $2,837.45
- Tax on the second bracket: Subtract $84,700 from $124,100, leaving $39,400 taxed at 6.6%. $39,400 × 0.066 = $2,600.40
- Estimated Vermont income tax: Add the tax from both brackets. $2,837.45 + $2,600.40 = $5,437.85
Vermont effective tax rate: $5,437.85 divided by $150,000 of household income equals 3.63%, rounded. The estimated state income tax rounds to $5,438 in the comparison table.
Vermont marginal tax rate: 6.6%, the rate applied to taxable income above $84,700 and up to $204,750 for Married Filing Jointly in the preliminary 2026 schedule. The couple pays this rate on $39,400 of taxable income, while the first $84,700 remains taxed at 3.35%.
Takeaway
Vermont Income Tax Takeaways
Higher rates apply only within the higher bracket: Vermont's 6.6% rate begins above $50,750 of taxable income for Single and $84,700 for Married Filing Jointly in the preliminary 2026 schedule. Income below those thresholds is taxed at 3.35%. Our $75,000 Single and $150,000 joint examples reach the second bracket. Therefore, neither pays the 7.6% or 8.75% rates.
The effective rate is below the bracket rate: Both examples reach a 6.6% marginal rate, but the Single filer pays 3.26% of household income in state tax and the married household pays 3.63%. State deductions and exemptions remove part of income from tax, and the first bracket taxes another portion at 3.35%. As income rises, these benefits cover a smaller share of total wages.
The joint brackets create a marriage penalty: The joint deduction and personal exemptions double in our examples, but the lower bracket does not. Compared with two Single filers, the married household has another $16,800 taxed at 6.6% instead of 3.35%. This produces $546 more Vermont tax on the same combined $150,000 of wages before rounding.
Vermont's state rank changes with income: At $75,000 of Single income, Vermont ranks 21st nationally, in the moderate income tax range. Its state income tax is lower than Massachusetts and New York in the selected-state comparison. At $150,000 of Single income, Vermont ranks 40th nationally, in the high range. Comparing states at the income and filing status that match the household gives a more useful result than comparing their top rates alone.
FAQ
Vermont Income Tax Questions and Answers
What are the Vermont income tax rates for 2026?
Vermont has four individual income tax rates for 2026: 3.35%, 6.6%, 7.6%, and 8.75%. The state uses progressive brackets, so each rate applies only to the portion of taxable income within its bracket. Under the preliminary 2026 schedule, the top 8.75% rate begins above $256,300 for Single, $312,050 for Married Filing Jointly, $156,025 for Married Filing Separately, and $284,150 for Head of Household.
How much is Vermont income tax on $75,000?
A Single filer earning $75,000 pays an estimated $2,446 in Vermont state income tax for 2026, with a 3.26% effective rate and a 6.6% marginal rate. This example assumes wages only, full-year residency, no dependents, and a taxpayer under age 65 who is not blind. It uses preliminary 2026 brackets with the retained 2025 standard deduction of $7,650 and personal exemption of $5,300. Federal, payroll, and local taxes are excluded.
How much is Vermont income tax on $100,000?
A Single filer earning $100,000 pays an estimated $4,096 in Vermont state income tax for 2026 under the same assumptions. The retained $7,650 state standard deduction and $5,300 personal exemption leave $87,050 of taxable income. The marginal rate is 6.6%, while the effective rate is 4.10% of household income. The calculation uses preliminary 2026 brackets and excludes federal, payroll, and local taxes.
What is the Vermont marginal tax rate?
Vermont's marginal income tax rate is 3.35%, 6.6%, 7.6%, or 8.75%, depending on taxable income and filing status. Each rate applies to the dollars of taxable income within its bracket. Under the preliminary 2026 schedule, a Single filer reaches the 6.6% bracket above $50,750, the 7.6% bracket above $122,850, and the 8.75% bracket above $256,300. The corresponding Married Filing Jointly thresholds are $84,700, $204,750, and $312,050.
What is the Vermont effective tax rate?
The effective tax rate is Vermont state income tax divided by household income, expressed as a percentage. In our 2026 examples, a Single filer earning $75,000 pays 3.26%, while a married couple earning $150,000 pays 3.63%. Both examples reach the 6.6% marginal bracket. The effective rates are lower because deductions, exemptions, and the 3.35% first bracket reduce the tax relative to total wages.
Does Vermont have a standard deduction?
Yes. Vermont provides its own standard deduction and adjusts it annually for inflation. Our 2026 estimates retain the published 2025 amounts of $7,650 for Single and Married Filing Separately, $15,300 for Married Filing Jointly and Qualifying Surviving Spouse, and $11,450 for Head of Household. The 2025 instructions also provide an additional $1,250 for each qualifying age-65-or-older or blindness condition. These are prior-year annual-return amounts pending final 2026 confirmation.
Does Vermont have a personal exemption?
Yes. Vermont provides a personal exemption that reduces taxable income. Our 2026 estimates retain the published 2025 amount of $5,300 for the taxpayer and another $5,300 for an eligible spouse on a joint return, for $10,600 combined. A person who can be claimed as someone else's dependent cannot claim their own exemption. The amount is indexed annually and remains subject to final 2026 annual-return confirmation.
Does Vermont have a dependent exemption?
Yes. Vermont extends its personal exemption to qualifying dependents claimed on the federal return. The published 2025 exemption is $5,300 per eligible person, pending confirmation of the indexed 2026 amount. Eligibility follows the applicable federal dependent rules, including relationship, support, residency, and age or income requirements. The exemption reduces taxable income and is separate from Vermont's refundable Child Tax Credit.
Does Vermont offer an Earned Income Tax Credit?
Yes. Eligible Vermont residents with qualifying children can claim a refundable state credit equal to 38% of their federal Earned Income Tax Credit. With three or more qualifying children, the 2026 federal maximum of $8,231 produces a Vermont credit of about $3,128. Eligible filers without qualifying children receive 100% of the federal credit, with a 2026 maximum of $664. Refundable means the credit can exceed the state income tax owed.
For three or more qualifying children, the 2026 federal credit reaches zero at $62,974 for Single or Head of Household and $70,244 for Married Filing Jointly. These limits use adjusted gross income or earned income, whichever is higher. The maximum credit and income cutoff are lower for households with fewer qualifying children. Part-year residents prorate the Vermont benefit under the state instructions.
Does Vermont have a Child Tax Credit?
Yes. Vermont provides a refundable Child Tax Credit of up to $1,000 for each qualifying child age six or younger at the end of 2026. The credit begins to phase out when federal adjusted gross income exceeds $125,000, with the same threshold for Single and Married Filing Jointly. The credit per child falls by $20 for each additional $1,000 of income, or part of that amount, and is fully phased out at $175,000. Full-year residents receive the eligible amount, while part-year residents prorate it. This state credit is separate from the federal Child Tax Credit.
Does Vermont have a marriage penalty?
Vermont can produce a marriage penalty because its joint brackets are less than twice as wide as its Single brackets. In our equal-wage examples, two Single filers each earning $75,000 owe a combined $4,891.85 before rounding. A married couple earning the same $150,000 owes $5,437.85, or $546 more. No marriage credit offsets that difference in this calculation. Married Filing Separately uses half the joint thresholds, so splitting these equal wages between separate returns does not remove the bracket effect.
Does Vermont have a minimum income tax?
Yes. When federal adjusted gross income exceeds $150,000, Vermont requires a comparison between the ordinary bracket calculation and a minimum calculation based on 3% of federal AGI, with an adjustment for interest from U.S. obligations. The larger result is used before subsequent tax adjustments and credits. This is a minimum calculation, not an additional 3% tax added to the regular brackets. The $150,000 threshold applies to both Single and Married Filing Jointly. Our married example is exactly at the threshold. Therefore this rule does not apply.
Is Vermont's Child Care Contribution included in these income tax rates?
No. Vermont's Child Care Contribution is a separate mandatory payroll tax that employers pay at 0.44% of covered wages. Employers may withhold up to one-quarter of that amount, or 0.11% of wages, from employees and pay the remainder themselves. The maximum employee share would be $82.50 on $75,000 of covered wages or $165 on $150,000.
Employers report and reconcile the contribution through payroll filings. Employees do not report it on their annual income tax returns. Self-employed individuals pay a separate 0.11% contribution on covered net self-employment income and report it on their annual Vermont income tax return. These amounts are excluded from this page's state income tax estimates and rankings.
References:
- 2026 Form IN-114 Instructions: Individual Income Estimated Tax Payments (PDF). Vermont Department of Taxes. Source of the preliminary 2026 bracket schedules used by the calculator. These estimated-tax figures remain subject to final annual-return confirmation. Retrieved October 19, 2026.
- 2026 Fiscal Facts (PDF). Vermont Legislative Joint Fiscal Office. Page 50 reproduces all four 2026 individual filing-status schedules. The legislative history section describes the 2018 change to four brackets and state deductions and exemptions. Retrieved October 19, 2026.
- 2025 Vermont Income Tax Return Booklet (PDF) and Filing Season FAQs. Vermont Department of Taxes. Supplies the retained 2025 deductions and exemptions, additional age and blindness allowance, filing-status rules, and minimum-tax procedure. The 2025 bracket table supports the historical comparison. The booklet's credit instructions also explain the EITC and Child Tax Credit. Retrieved October 19, 2026.
- Vermont Statutes, Title 32, Chapter 151: Income Taxes. Vermont General Assembly. Sections 5811 and 5822 govern taxable income, deductions, exemptions, rates, inflation adjustments, and the minimum tax. Sections 5828b and 5830f govern the Earned Income Tax Credit and Child Tax Credit. Section 5861 governs return filing. Retrieved October 19, 2026.
- Tax Credits and Adjustments for Individuals and 2025 Legislative Highlights. Vermont Department of Taxes. Explains the refundable Child Tax Credit and its income limits. Act 71 expanded the qualifying age through six and raised the EITC percentage to 100% for eligible filers without qualifying children beginning in tax year 2025. Retrieved October 19, 2026.
- Revenue Procedure 2025-32, Internal Revenue Bulletin 2025-45. Internal Revenue Service. Section 4.06 supplies the 2026 federal Earned Income Tax Credit maximum amounts and phaseout limits used to explain Vermont's percentage-based credit. Retrieved October 19, 2026.
- Child Care Contribution. Vermont Department of Taxes. Explains the separate 0.44% payroll contribution, optional employee share of up to 0.11%, and contribution on self-employment income under Act 76 of 2023. Retrieved October 19, 2026.