Tax Bracket Calculator for Vermont (VT) — Free Calculator

Vermont Tax Brackets (2026)

Vermont uses a graduated income tax system with a top marginal rate of 8.75%.

Vermont Bracket Structure

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.

Federal Tax Brackets Still Apply to Vermont Residents

Regardless of Vermont's state tax rules, all residents pay federal income tax. Federal brackets for 2024 range from 10% (on income up to $11,600 for single filers) to 37% (on income over $609,350). Your effective federal rate is typically well below the top marginal rate due to the graduated bracket structure.

Effective vs. Marginal Rate in Vermont

Your marginal rate is the rate on your last dollar of income. Your effective rate is your total tax divided by total income. For Vermont residents the marginal rate can reach 8.75% but most filers pay a lower effective rate. The median household income in Vermont is $66,234.

Data: Tax Foundation (2024), IRS Statistics of Income, US Census Bureau ACS 2023. Updated 2024–2025. Figures reflect state averages — consult a licensed CPA for personalized tax advice.

Tax Bracket Calculator for Other States

Frequently Asked Questions

What tax brackets apply to Vermont residents?

Vermont has a graduated income tax system. 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. Federal brackets also apply on top of the state tax.

What is the difference between marginal and effective tax rate in Vermont?

Your marginal rate is the rate on your highest dollar of income. Your effective rate is your total tax burden divided by total income. In Vermont, even if the top marginal rate is 8.75%, most residents pay a lower effective rate because lower income portions are taxed at lower brackets.

Does Vermont have different tax brackets for married filers?

Yes, Vermont typically has different bracket thresholds for single vs. married filing jointly filers. Married joint filers often have brackets approximately twice as wide, reducing the marriage penalty. Check the Vermont Department of Revenue for current bracket tables.

How does this tax bracket calculator work for Vermont?

Enter your income and filing status. The calculator applies both federal and Vermont state tax brackets to show your marginal rate, effective rate, and total estimated tax. Vermont's graduated rate of up to 8.75% is applied to your state taxable income.