Vermont paycheck taxes at a glance
| Income tax on wages | Progressive, 3.35% – 8.75% |
|---|---|
| Minimum wage (2026) | $14.42 an hour ($7.21 cash wage for tipped employees; applies to employers with two or more employees) |
2026 Vermont income tax brackets (single filers)
| Taxable income | Rate |
|---|---|
| $0 – $50,749 | 3.35% |
| $50,750 – $122,849 | 6.6% |
| $122,850 – $256,299 | 7.6% |
| $256,300 and up | 8.75% |
Example: a $86,000 salary in Vermont
The median household income in Vermont is about $86,018 (2025 data). Here's what one earner with that salary, paid every two weeks, filing single with no pre-tax deductions, would see on each paycheck in 2026:
| Gross pay | $3,307.69 |
|---|---|
| Federal income tax | −$388.08 |
| Social Security | −$205.08 |
| Medicare | −$47.96 |
| Vermont income tax | −$122.00 |
| Take-home pay | $2,544.58 |
That's $66,159 a year in take-home pay, or 23.1% of gross pay going to taxes.
Take-home pay by salary in Vermont
Single filer, paid biweekly, standard W-4, no pre-tax deductions:
| Salary | Per paycheck | Per year | State taxes | Total tax rate |
|---|---|---|---|---|
| $40,000 | $1,285.15 | $33,414 | $906 | 16.5% |
| $60,000 | $1,877.45 | $48,814 | $1,576 | 18.6% |
| $80,000 | $2,397.46 | $62,334 | $2,776 | 22.1% |
| $100,000 | $2,887.85 | $75,084 | $4,096 | 24.9% |
| $150,000 | $4,086.66 | $106,253 | $7,538 | 29.2% |
| $200,000 | $5,291.89 | $137,589 | $11,338 | 31.2% |
What changed for 2026
- The minimum wage rose from $14.01 to $14.42 an hour on January 1, 2026, and the cash wage for tipped employees from $7.01 to $7.21.
- Vermont's preliminary 2026 rate schedules widen each bracket for inflation. For single filers, the 6.6% rate starts at $50,750 of taxable income (up from $49,400), 7.6% at $122,850 (up from $119,700) and 8.75% at $256,300 (up from $249,700).
Vermont pay rules worth knowing
- Vermont's default is weekly pay. Employers may pay every two weeks or twice a month after giving employees notice, and each paycheck must cover wages earned through a day no more than six days before payday.
- If you're fired, your final pay is due within 72 hours. If you quit, it's due on the next regular payday, or the following Friday if there's no regular payday.
How Vermont figures your income tax
Vermont starts with your federal adjusted gross income, then subtracts its own standard deduction and a personal exemption for you, your spouse and each dependent. For 2025, the latest year with final figures, the standard deduction was $7,650 for single filers and $15,300 for married couples filing jointly, and each exemption was worth $5,300. What’s left is taxed at 3.35%, 6.6%, 7.6% and 8.75%.
The brackets are indexed for inflation. The Department of Taxes has published preliminary 2026 rate schedules for estimated payments, and they’re slightly wider than 2025’s. The 2026 withholding tables employers use already build in the higher amounts. This calculator uses those preliminary 2026 brackets. Vermont hasn’t finalized the 2026 standard deduction and exemption yet, so it keeps the 2025 amounts for those two, which may overstate Vermont tax by a few dollars.
The 3% minimum tax
Vermont has a floor for higher earners. If your federal AGI is over $150,000, you pay the larger of your regular Vermont tax or 3% of AGI, after subtracting interest from U.S. government obligations. For a salaried worker with no unusual deductions, the regular rates already produce more than 3%: in this calculator, a single filer earning just over $150,000 owes about 5.1% of income and a married couple about 3.7%. The calculator applies the test automatically.
The Child Care Contribution
Since July 1, 2024, Vermont has charged employers a 0.44% payroll tax called the Child Care Contribution. It applies to the same wages that are subject to Vermont income tax withholding, including pay for remote work done from a Vermont location. Employers can choose to pass up to 25% of the cost to employees, which works out to a deduction of at most 0.11% of your wages.
This calculator doesn’t include the Child Care Contribution, because whether you pay it depends on your employer’s choice. If yours withholds it, expect about $1.10 less for every $1,000 of pay. Self-employed Vermonters pay 0.11% of their net self-employment income earned in Vermont, as part of their estimated tax payments.
Weekly paychecks and minimum wage
Vermont’s wage law starts from weekly pay, though employers can switch to biweekly or twice-monthly pay with notice. The 2026 minimum wage is $14.42 an hour at employers with two or more employees. It’s adjusted each January by a formula, and if the federal minimum ever rises above it, the federal rate applies instead.
To compare pay across states, use the salary calculator for hourly-to-annual conversions and the cost of living calculator to see how far a Vermont paycheck goes.
Estimates only. Your employer’s payroll system, your W-4 and Form W-4VT determine your actual paycheck.
How we calculate: Uses Vermont’s preliminary 2026 brackets. The 2026 standard deduction and personal exemption were not yet final, so the 2025 amounts are used (tax here may be very slightly overstated).
Sources
- Vermont Department of Labor: 2026 minimum wage poster
- Vermont Department of Labor: Worker rights and wages
- 21 V.S.A. § 342: Wages; weekly payment
- Vermont Department of Taxes: Child Care Contribution
- Vermont Department of Taxes: 2026 Form IN-114 instructions (preliminary 2026 tax rates)
- U.S. Department of Labor: State minimum wage laws
- Census Bureau: Household Income in States and Metropolitan Areas, 2025
- tax.vermont.gov
- tax.vermont.gov
- tax.vermont.gov
- IRS Publication 15-T (federal withholding)
Frequently asked questions
What is the Child Care Contribution on my Vermont pay stub?
It's your share, if any, of a Vermont payroll tax. Employers owe 0.44% of the wages they pay for work done in Vermont and may take up to a quarter of that, 0.11% of your wages, out of your pay. Whether they pass any of it on is the employer's choice.
I live in another state but sometimes work in Vermont. What gets withheld?
Vermont taxes nonresidents on wages for work performed in Vermont. When you work in Vermont and elsewhere in the same pay period, your employer figures the Vermont tax on your full pay and then multiplies it by the share of your hours worked in Vermont. Wages subject to Vermont withholding are also subject to the Child Care Contribution.
How does the 3% minimum tax work?
If your federal adjusted gross income is over $150,000, your Vermont tax is the higher of the regular tax from the rate schedules or 3% of your AGI (less interest from U.S. obligations). It mainly affects people with large deductions or income that the regular calculation would otherwise tax lightly.
Facts verified November 6, 2026. Estimates only; your employer's payroll system and your W-4 determine your actual withholding.