Quick Answer
Vermont state income tax ranges from 3.35% to 8.75% depending on your income. For 2026, a single filer earning $60,000 pays about $2,850 in Vermont state income tax (4.75% effective rate), while someone earning $100,000 pays approximately $5,580 (5.58% effective rate).
Best Answer
Sarah Chen, Payroll Tax Analyst
Best for traditional employees who want to understand their Vermont tax withholding
How Vermont's progressive tax rates work
Vermont uses a progressive tax system with five tax brackets for 2026. Your rate increases as your income rises, but you only pay the higher rate on income above each threshold.
For single filers in 2026:
Married filing jointly rates are roughly double the single thresholds.
Example: $60,000 salary calculation
Let's calculate Vermont tax for a single person earning $60,000:
Your biweekly paycheck would have about $95 withheld for Vermont state tax ($2,485 ÷ 26 pay periods).
Example: $100,000 salary calculation
For someone earning $100,000:
This equals roughly $197 per biweekly paycheck for Vermont withholding.
Key factors that affect your Vermont tax
What you should do
Review your most recent paystub to see your year-to-date Vermont withholding. If you're significantly over or under your estimated annual liability, consider adjusting your W-4 withholding.
[Use our paycheck calculator](https://explainmypaycheck.com/tools/paycheck-calculator) to see exactly how Vermont tax affects your take-home pay and optimize your withholding.
Key takeaway: Vermont's progressive rates mean most middle-income earners pay an effective rate of 4-6%, with $95-197 withheld per biweekly paycheck for typical $60K-100K salaries.
*Sources: [Vermont Department of Taxes 2026 Tax Tables](https://tax.vermont.gov), [IRS Publication 15-T](https://www.irs.gov/pub/irs-pdf/p15t.pdf)*
Key Takeaway: Vermont's progressive tax system results in effective rates of 4-6% for most middle-income earners, with biweekly withholding of $95-197 for typical salaries.
Vermont state income tax brackets and withholding examples for 2026
| Income Level | Tax Bracket | Annual Vermont Tax | Biweekly Withholding |
|---|---|---|---|
| $40,000 | 3.35% | $1,340 | $52 |
| $60,000 | 3.35% / 6.60% | $2,485 | $95 |
| $80,000 | 3.35% / 6.60% | $3,808 | $146 |
| $100,000 | 3.35% / 6.60% | $5,125 | $197 |
| $150,000 | 3.35% / 6.60% / 7.60% | $8,439 | $325 |
More Perspectives
Sarah Chen, Payroll Tax Analyst
Best for new Vermont residents who need to understand state tax changes
What changes when you move to Vermont
If you're moving from a no-tax state like New Hampshire, Florida, or Texas, you'll now owe Vermont state income tax on all your income. If you're coming from another tax state, you'll need to compare rates and rules.
Vermont's 2026 rates (3.35% to 8.75%) are higher than many states but include some benefits:
Part-year resident calculation
If you moved to Vermont mid-year, you'll file as a part-year resident. Vermont taxes only your Vermont-sourced income plus income earned while a Vermont resident.
Example: You moved to Vermont on July 1st with a $72,000 annual salary. You'd owe Vermont tax on:
Updating your payroll withholding
Once you establish Vermont residency, update your W-4 with your employer immediately. Vermont withholding follows federal guidelines but uses Vermont's tax brackets.
Most payroll systems will automatically start Vermont withholding once you provide a Vermont address, but verify this on your first paystub after moving.
What you should do
1. Update your W-4 with HR within two weeks of moving
2. Check if your previous state requires a part-year return
3. Consider increasing withholding temporarily if moving from a no-tax state
4. Save documentation of your move date for tax filing
Key takeaway: New Vermont residents face immediate withholding changes and may need to file part-year returns in both states, making careful payroll adjustment essential.
*Sources: [Vermont Department of Taxes Residency Guide](https://tax.vermont.gov), [IRS Publication 505](https://www.irs.gov/pub/irs-pdf/p505.pdf)*
Key Takeaway: New Vermont residents must immediately update W-4 withholding and may owe tax to both Vermont and their previous state for the moving year.
Sources
- Vermont Department of Taxes 2026 Tax Tables — Official Vermont state income tax brackets and rates
- IRS Publication 15-T — Federal Income Tax Withholding Methods
Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.