How Vermont Taxes Your Paycheck
Vermont uses a progressive income tax with 4 brackets. Rates start at 3.35% on the lowest earnings and rise to 8.75% on income above $242,000 for single filers.
Vermont's 8.75% top rate is among the highest, but the state is also one of the few that lets residents deduct most charitable contributions on the state return.
Vermont Job Market Context
Tourism, dairy and maple syrup, and a small but growing tech sector around Burlington.
Top Cities in Vermont
The largest population centers in Vermont:
- Burlington — 44,600 residents
- Essex — 22,500 residents
- South Burlington — 20,300 residents
How Vermont Compares to Neighboring States
Single-filer take-home on a $75,000 annual salary in 2026, federal + state income tax + FICA only:
| State | Take-Home | vs. Vermont |
|---|---|---|
| Vermont (here) | $59,024 | — |
| New Hampshire | $61,593 | +$2,568 |
| Massachusetts | $58,063 | -$962 |
| New York | $58,073 | -$952 |
Take-home reflects single filer, no pre-tax deductions; SDI/PFML and local taxes excluded for an apples-to-apples comparison.
Frequently Asked Questions
What's the Vermont state income tax rate?
Vermont has progressive income tax brackets ranging from 3.35% to 8.75%. Most middle-income earners hit the middle brackets; the top rate applies only above $242,000.
How much is taken out of my paycheck in Vermont?
For a single filer earning $75,000 in Vermont (2026), expect roughly $7,670 in federal income tax, $5,738 in FICA, and $2,568 in Vermont state tax — leaving about $59,024 take-home (21.3% effective tax rate). SDI/PFML and local taxes (if any) come out of that as well.
Is the Vermont median household income enough to live comfortably?
The 2023 ACS reported a Vermont median household income of about $82,700. Whether that's "comfortable" depends heavily on city — Burlington cost of living can differ substantially from rural areas. Use the calculator above to model your specific salary and deductions.
How does this Vermont paycheck calculator work?
We calculate your annualized gross pay based on the pay frequency you select, then apply the 2025 or 2026 IRS percentage method for federal income tax, the Vermont state tax schedule (if any), Social Security, and Medicare. Pre-tax deductions like 401(k) and Section 125 health premiums reduce your taxable base before withholding is computed. You can switch between salary and hourly modes; hourly mode applies time-and-a-half to hours over 40/week prorated by pay period.