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Vermont State Income Tax Calculator

Calculate your 2026 Vermont state income tax. See your bracket breakdown, effective rate, and how Vermont compares to neighboring states.

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Vermont · 2026
State Taxable Income
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Effective Rate
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Marginal Rate
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State Tax
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Annual Amount After Income Tax
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Monthly Allocation After Income Tax
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Weekly Allocation After Income Tax
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The annual amount is gross income minus entered pre-tax deductions and modeled federal and state income tax. Monthly and weekly amounts divide it by 12 and 52. These allocations exclude Social Security and Medicare (FICA), local taxes, other payroll taxes, and unmodeled paycheck deductions. They do not estimate paycheck take-home or actual withholding.

Effective State Income Tax Rate vs Neighboring States

About Vermont state taxes (Tax year 2026)

The 2026 IN-114 rates are preliminary. The statutory 3% minimum applies when federal AGI exceeds $150,000, before specified nonrefundable credits. Taxable income is a separately confirmed or explicitly assumed input; final 2026 indexed deductions and exemptions are not certified.

Groceries and clothing are exempt from sales tax. Prescription drugs are exempt.

Vermont's top rate of 8.75% is well above the national average, ranking among the top 10 highest state income tax rates in the country.

Filing in Vermont: returns for tax year 2026 are administered by the Vermont Department of Taxes and are generally filed in 2027 by the federal April deadline unless Vermont declares a state-specific extension. Tax type on this return: Progressive. Top marginal rate: 8.75%. State sales-tax rate: 6%. For the most current contact info, see the Federation of Tax Administrators directory.

Vermont — What is Vermont's income tax rate? The 2026 IN-114 rates are preliminary. The statutory 3% minimum applies when federal AGI exceeds $150,000, before specified nonrefundable credits. Taxable income is a separately confirmed or explicitly assumed input; final 2026 indexed deductions and exemptions are not certified.

Vermont — Does Vermont tax groceries or clothing? No, both groceries and clothing are exempt from Vermont's 6% state sales tax.

Vermont — How does Vermont compare to New Hampshire? Vermont has significantly higher taxes than neighboring New Hampshire, which has no income tax and no sales tax. However, Vermont offers more state-funded services and programs.

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Reviewed methodology

How this page is reviewed

High YMYL · Last verified 2026-11-06

See methodology, assumptions & sources
Risk tierHigh YMYL
AuthorCalculover Editorial Team Tax education
Editorial ownerCalculover Tax & Payroll Desk State-tax methodology owner
ReviewerCalculover Editorial Review Government-source and limitation review
Last reviewed2026-11-06
Last verified2026-11-06
Data effective date2026-01-01
JurisdictionVermont

Methodology

These pages estimate annual state income tax for the selected 2026 jurisdiction and filing status. The route's coverage panel identifies the supported income basis, deductions, credits and exclusions.

Assumptions

  • Enter the income basis and eligible pre-tax deductions requested by the calculator; gross wages, federal AGI and state AGI are not interchangeable.
  • Some methods require confirmed state facts or explicit projection assumptions. An unavailable component is not zero tax.

Limitations

  • The estimate excludes unmodeled income, adjustments, local taxes and special filing situations. Utah's indexed-credit assumptions remain provisional while final 2026 instructions are pending.
  • Annual liability differs from withholding and paycheck take-home. Confirm the current official forms and source versions for a complete return.

Sources

Professional guidance: This page is for state-tax education only and is not tax, legal, financial, or investment advice. State tax decisions and multi-state filing should be reviewed with a CPA or enrolled agent licensed in the relevant states.

Vermont Income Tax FAQs

How is Vermont income tax calculated?

The 2026 IN-114 rates are preliminary. The statutory 3% minimum applies when federal AGI exceeds $150,000, before specified nonrefundable credits. Taxable income is a separately confirmed or explicitly assumed input; final 2026 indexed deductions and exemptions are not certified.

What is the Vermont income tax rate for 2026?

The 2026 IN-114 rates are preliminary. The statutory 3% minimum applies when federal AGI exceeds $150,000, before specified nonrefundable credits. Taxable income is a separately confirmed or explicitly assumed input; final 2026 indexed deductions and exemptions are not certified.

What is the difference between marginal and effective Vermont tax rate?

Your marginal rate is the rate on your last dollar of income. Your effective rate is the average rate across all your income — total tax divided by total income. The effective rate is almost always lower than the marginal rate due to the progressive bracket structure.

How can I reduce my Vermont income taxes?

Common strategies include maximizing pre-tax retirement contributions (401k, traditional IRA), contributing to an HSA if eligible, claiming all deductions you qualify for, and timing income or deductions strategically. Consult a qualified tax professional for personalized advice.

Does Vermont have a standard deduction?

Enter Vermont taxable income after the deductions, exemptions and adjustments appropriate to your selected basis. The preliminary rate table does not supply final 2026 deduction or exemption amounts. This amount does not replace gross income or federal AGI.