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Tax year 2026. Federal, FICA, and state rules last checked . How we calculate

Vermont state income tax 2026

Vermont uses progressive brackets, with rates from 3.35% to 8.75%. For a single filer earning $65,000, our simplified 2026 estimate is $1,823, about 2.81% of wages.

Last reviewed . Data: 2026 tax year (laws enacted through mid-2026).

Tax type
Progressive brackets
Rate
3.35%–8.75% progressive
Estimated tax on $65,000 (single filer)
$1,823
Local income taxes
None

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 incomeRate
$0 – $49,4003.35%
$49,400 – $119,7006.6%
$119,700 – $249,7007.6%
Over $249,7008.75%

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

State income tax on a $65,000 salary
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.

StateEst. tax on $65,000vs. 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.

All states and DC on the map

Estimates cover Vermont income tax on wages for a single filer and exclude local taxes and state credits. They are not tax advice. See our disclaimer and how we calculate.