Income Tax for Vermont (2026)
Vermont (VT) Key Facts
Top Marginal Rate
8.75%
Tax Structure
Progressive
Filing Deadline
April 15
Has State Income Tax
Yes
Number of Brackets
4
How This Calculator Works in Vermont
This calculator applies Vermont's 2026 tax brackets and rates to estimate your state income tax liability. Enter your income and filing status to see your marginal rate, effective rate, and estimated tax owed.
Vermont Overview
Vermont levies a progressive income tax with 4 brackets and a top rate of 8.75%, among the highest in New England and the nation. The state does not tax Social Security benefits and provides various credits for lower-income residents. Vermont's high tax rates fund extensive public services including universal healthcare subsidies, education, and environmental programs.
How Vermont Compares
Vermont's top income tax rate of 8.75% compares to New Hampshire at 0% and New York at 10.9%. The rate differences can meaningfully impact take-home pay for workers near state borders.
| State | Top Rate | Notes |
|---|---|---|
| New Hampshire | 0% | New Hampshire has an income tax rate of 0%. |
| New York | 10.9% | New York has an income tax rate of 10.9%. |
| Massachusetts | 5% | Massachusetts has an income tax rate of 5%. |
Vermont's income tax rate of 8.75% compares to a national average of approximately 5.04%. This is above the national average.
Tips for Vermont Residents
- 1Vermont's top income tax rate is 8.75% on income over approximately $229,500 (single), one of the highest in the country.
- 2Vermont does not tax Social Security benefits and offers an exemption for the first $10,000 of military retirement pay.
- 3The state offers a renter rebate program that provides property tax relief for qualifying renters based on income.
- 4Vermont uses federal taxable income as the starting point, so federal deductions carry through to your state return.
- 5Vermont's Education Fund receives a significant portion of income tax revenue, reflecting the state's heavy investment in public schools.