How Vermont taxes wages
Four brackets from 3.35% to 8.75%.
At $65,000 of wages, that is the 6th-lowest estimated bill of the 42 jurisdictions (including DC) that tax wages.
Its top rate of 8.75% is the 8th-highest among the 26 jurisdictions with progressive brackets.
Vermont tax brackets for single filers
2025 brackets for single filers. Source: tax.vermont.gov (PDF)
Vermont adjusts its bracket thresholds for inflation each year. The 2026 thresholds haven’t been published yet, so we show the latest official schedule. Rates are unchanged.
| Taxable income | Rate |
|---|---|
| $0 – $49,400 | 3.35% |
| $49,400 – $119,700 | 6.6% |
| $119,700 – $249,700 | 7.6% |
| Over $249,700 | 8.75% |
If your adjusted gross income is over $150,000, Vermont tax is the greater of 3% of AGI or the rate schedule amount.
Example: $65,000 salary, single filer
| Wages | $65,000 |
|---|---|
| Income not taxed (approx. deduction, exemptions, 0% bracket) | −$13,050 |
| Income taxed | $51,950 |
| Average rate used for the estimate | × 3.51% |
| Estimated Vermont income tax | $1,823 |
That works out to about $152 a month, or an effective rate of 2.81% of wages.
Calculators for Vermont
- Paycheck calculator
Take-home pay after federal income tax, Social Security, Medicare, and Vermont income tax, with Vermont selected.
- Tips and overtime calculator
Your federal deduction for qualified tips and overtime, with Vermont selected and its state rules applied to the Vermont estimate.
- Senior deduction calculator
A federal deduction of up to $6,000 for each person 65 or older, after the income phase-out.
- Car loan interest calculator
A federal deduction for interest on a loan for a new, U.S.-assembled vehicle.
Does Vermont tax tips and overtime?
Vermont does not follow the federal tips and overtime deduction. The deductions come out of federal taxable income and, according to the Joint Fiscal Office, don’t flow through to Vermont.
Qualified tips and overtime you deduct on your federal return (Schedule 1-A) are still taxed by Vermont, and our estimate taxes your full wages.
Source: Vermont Joint Fiscal Office: federal tax changes and impacts (PDF), January 6, 2026. Checked . See how every state treats tips and overtime
To see your federal deduction and Vermont tax together, open the tips and overtime calculator with Vermont selected.
Vermont vs. neighboring states
Workers in New Hampshire would owe less on the same salary. New York and Massachusetts would charge more.
| State | Est. tax on $65,000 | vs. Vermont |
|---|---|---|
| New Hampshire | $0 | −$1,823 |
| New York | $2,913 | +$1,090 |
| Massachusetts | $3,030 | +$1,207 |
Official source
For forms, exact brackets, and filing deadlines, go to the official Vermont tax agency website.
Related states
- New York3.9%–10.9% progressive
- Massachusetts5% flat tax
- New HampshireNo state income tax
- Rhode Island3.75%–5.99% progressive