Vermont income tax rates for 2026
Four brackets from 3.35% to 8.75%. The calculation starts from federal adjusted gross income with Vermont modifications. Each rate applies only to the slice of taxable income inside its bracket, so earning enough to reach a higher bracket never lowers your income after tax.
| Rate | Taxable income |
|---|---|
| 3.35% | $0 – $50,750 |
| 6.6% | $50,751 – $122,850 |
| 7.6% | $122,851 – $256,300 |
| 8.75% | Over $256,300 |
| Rate | Taxable income |
|---|---|
| 3.35% | $0 – $84,700 |
| 6.6% | $84,701 – $204,750 |
| 7.6% | $204,751 – $312,050 |
| 8.75% | Over $312,050 |
Vermont has a separate head-of-household schedule; the calculator approximates it with the single brackets. Married people filing separately use the single brackets.
Deductions, exemptions and credits
Before the rates apply, Vermont allows a standard deduction of $7,850 (single) or $15,700 (married filing jointly) and a personal exemption of $5,400 (single) or $10,800 (joint). The calculator uses these for the filing status you choose; dependent exemptions and credits, which lower the tax further for families, are not included.
- Filers with federal AGI over $150,000 pay at least 3% of AGI; that minimum is not applied here.
Worked example: $75,000 in Vermont
Single filer with $75,000 of income before state deductions.
Taxable income = $75,000 − $7,850 (standard deduction) − $5,400 (personal exemption) = $61,750.00
Brackets: 3.35% × $50,750.00 + 6.6% × $11,000.00 = $2,426.13
Vermont income tax = $2,426.13 — an effective rate of 3.23% and a marginal rate of 6.6%.
Vermont income tax at common incomes
| Income | Single | Effective | Married jointly | Effective |
|---|---|---|---|---|
| $30,000 | $561 | 1.87% | $117 | 0.39% |
| $50,000 | $1,231 | 2.46% | $787 | 1.57% |
| $75,000 | $2,426 | 3.23% | $1,625 | 2.17% |
| $100,000 | $4,076 | 4.08% | $2,462 | 2.46% |
| $150,000 | $7,515 | 5.01% | $5,398 | 3.6% |
| $250,000 | $15,115 | 6.05% | $12,186 | 4.87% |
Income before state deductions; standard deduction and personal exemptions for the filer (and spouse) only; no dependents, itemized deductions or local taxes.
Vermont compared with nearby states
At $75,000 (single), Vermont ranks 31 of 51 for state income tax, where 1 is the highest. New Hampshire does not tax wages.
| State | Tax on $75,000 | Effective rate | Top rate |
|---|---|---|---|
| Vermont | $2,426 | 3.23% | 8.75% |
| New York | $3,453 | 4.6% | 10.9% |
| New Hampshire | $0 | 0% | none |
| Massachusetts | $3,530 | 4.71% | 9% |
More about taxes in Vermont
- Vermont filers with federal AGI over $150,000 pay the greater of the regular tax or 3% of AGI.
Vermont’s 2026 brackets and standard deduction are derived from the state’s 2026 withholding tables (published tax-year schedules weren’t available); the head-of-household deduction is the 2025 amount and head-of-household brackets are approximated with the single brackets.
Frequently asked questions
What is the Vermont income tax rate for 2026?
Four brackets from 3.35% to 8.75%. A single filer with $75,000 of income is in the 6.6% bracket but pays an effective 3.23%, because lower slices of income are taxed at lower rates.
How much Vermont income tax do I pay on $75,000?
About $2,426 for a single filer — 3.23% of income — after $7,850 of standard deduction and $5,400 of personal exemption. A married couple with $150,000 owes about $5,398.
What deductions does Vermont allow?
Vermont allows a standard deduction of $7,850 (single) or $15,700 (married filing jointly) and a personal exemption of $5,400 (single) or $10,800 (joint). Dependent exemptions or credits, where the state offers them, lower the tax further.
Is Vermont's income tax higher than its neighbors'?
At $75,000 (single), Vermont ranks 31 of 51 for state income tax, where 1 is the highest. Among nearby states, New Hampshire is lowest at $0 and Massachusetts is highest at $3,530.
Estimates only — not tax advice. Vermont figures: Vermont 2026 income tax withholding tables (as reproduced by the USDA National Finance Center payroll bulletin); Tax Foundation 2026 table. Checked October 2026. Your return may include income, deductions and credits this estimate leaves out.