Vermont State Income Tax Overview
Vermont (VT) state income tax rate: 8.75% (graduated rate system)
Vermont Income Tax Brackets (2026)
3.35% on first $45,400 (single); 6.6% on $45,401–$110,050; 7.6% on $110,051–$229,550; 8.75% above $229,550
Vermont has the 6th highest top income tax rate in the US at 8.75%. Vermont also taxes Social Security benefits for higher earners and has an estate tax. Vermont's high income tax rates reflect the state's comprehensive public services model.
Median Household Income in Vermont
The median household income in Vermont is $66,234. Vermont's median income is near the national average. Vermont has an aging population and has struggled with net out-migration of younger residents. Vermont offered remote workers $10,000 grants to relocate to the state, reflecting its demographic challenges.
How to Use This Calculator for Vermont
- Enter your gross income and filing status
- The calculator applies Vermont's graduated income tax rate of up to 8.75%
- Subtract your standard deduction and any applicable credits
- Review your estimated state and federal tax liability
Frequently Asked Questions
What is the Vermont state income tax rate?
Vermont has a graduated income tax with a top rate of 8.75%. 3.35% on first $45,400 (single); 6.6% on $45,401–$110,050; 7.6% on $110,051–$229,550; 8.75% above $229,550.
How does Vermont's income tax compare to the national average?
Vermont's top income tax rate of 8.75% applies to a graduated rate system. Vermont has the 6th highest top income tax rate in the US at 8.75%. Vermont also taxes Social Security benefits for higher earners and has an estate tax. Vermont's high income tax rates reflect the state's comprehensive public services model.
What is the median household income in Vermont?
The median household income in Vermont is $66,234. Vermont's median income is near the national average. Vermont has an aging population and has struggled with net out-migration of younger residents. Vermont offered remote workers $10,000 grants to relocate to the state, reflecting its demographic challenges.
Is this state income tax calculator free to use for Vermont?
Yes, this state income tax calculator is 100% free with no signup required. It includes Vermont-specific tax rates and calculates your estimated state and federal tax liability instantly.