How Vermont taxes your paycheck
Vermont uses a graduated rate schedule with 4 brackets for single filers in 2026. Like the federal system, only the income inside each bracket is taxed at that bracket's rate — moving into a higher bracket never taxes your whole paycheck at the higher rate.
The 2026 standard deduction is $7,850 (single), $15,700 (married filing jointly), $11,800 (head of household). Derived from the 32 V.S.A. section 5811 TY2018 base amounts ($6,000 single/MFS, $9,000 HOH, $12,000 MFJ) indexed annually by CPI-U under the section 1(f)(3) methodology. A secondary CPA compilation labeled 'estimated' shows lower figures ($7,000/$10,550/$14,050) that are inconsistent with the statutory formula and were rejected as stale.
On exemptions: $5,400 per person (filer, spouse if MFJ, each dependent), derived from the $4,150 TY2018 base indexed by CPI-U under 32 V.S.A. section 5811; plus $1,300 additional per section 63(f) qualification (age 65+ or blind).
What’s taken out of a Vermont paycheck
| Taxable income (single) | Marginal rate |
| Up to $47,900 | 3.35% |
| $47,901 – $116,000 | 6.6% |
| $116,001 – $242,000 | 7.6% |
| Over $242,000 | 8.75% |
Single-filer schedule. Married and head-of-household thresholds differ; the calculator below uses the correct schedule for the filing status you pick.
Example: a $75,000 salary in Vermont
On a $75,000 salary as a single filer: federal taxable income is $75,000 − $16,100 = $58,900, giving $7,670 of federal tax. State taxable income is $67,150, giving $2,875 of state tax. FICA takes $4,650 (Social Security) + $1,088 (Medicare). Estimated take-home: $58,717 per year ($2,258 per biweekly paycheck).
| Gross salary | $75,000 |
| Federal income tax | −$7,670 |
| State income tax (VT) | −$2,875 |
| Social Security (6.2%) | −$4,650 |
| Medicare (1.45%) | −$1,088 |
| Estimated take-home | $58,717 |
| Effective tax rate | 21.7% |
Single filer, standard deduction, no pre-tax contributions. The interactive calculator above recomputes this for any salary and filing status.
A note on local taxes in Vermont
Vermont has no local income tax and no employee-paid payroll taxes beyond income tax withholding.