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.
Your Tax Inputs
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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How this page is reviewed
See methodology, assumptions & sources
| Risk tier | High YMYL |
|---|---|
| Author | Calculover Editorial Team Tax education |
| Editorial owner | Calculover Tax & Payroll Desk State-tax methodology owner |
| Reviewer | Calculover Editorial Review Government-source and limitation review |
| Last reviewed | 2026-11-06 |
| Last verified | 2026-11-06 |
| Data effective date | 2026-01-01 |
| Jurisdiction | Vermont |
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
- State Tax Rates, Federation of Tax Administrators
- State Individual Income Tax Rates and Brackets, Tax Foundation
- State Government Resources, Internal Revenue Service
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.