Vermont State Tax Calculator 2026
Estimate your Vermont state income tax and take-home pay for tax year 2026.
Last updated: November 2025 · Note: 2026 brackets pending publication; figures reflect 2025 · Source
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Vermont 2026 tax overview
4 brackets; VT has its own std deduction schedule.
Breakdown
Vermont income tax brackets, 2026
Rates apply to each slice of taxable income in turn, not to the whole amount. Reaching the 8.75% bracket does not mean paying 8.75% on everything. Figures are for single filers unless the state uses one schedule for all statuses.
| Taxable income | Rate | Tax on this bracket |
|---|---|---|
| $0 to $47,900 | 3.35% | $1,605 max |
| $47,900 to $116,000 | 6.60% | $4,495 max |
| $116,000 to $242,000 | 7.60% | $9,576 max |
| Over $242,000 | 8.75% | 8.75% of everything above $242,000 |
Brackets apply to income after the Vermont standard deduction of $7,400 single and $14,850 married filing jointly, which is separate from the federal standard deduction.
Vermont had not published its final inflation-indexed 2026 thresholds when this page was last reviewed, so the bracket boundaries above are the 2025 figures. The rates are correct; the thresholds will shift slightly upward.
Frequently Asked Questions
What are the 2026 Vermont income tax rates?
Vermont uses a 4-bracket progressive schedule for 2026, running from 3.35% to 8.75%. The top rate starts at $242,000 of taxable income. 4 brackets; VT has its own std deduction schedule.
At what income does the top Vermont tax rate start?
The 8.75% top rate applies to taxable income above $242,000. Below that, 3 lower brackets apply in sequence, so your average rate is always lower than your top rate.
What is the 2026 Vermont standard deduction?
Vermont allows a state standard deduction of $7,400 for single filers and $14,850 for married filing jointly in 2026. This is separate from the federal standard deduction, which is $16,100 and $32,200 respectively.
Does Vermont tax Social Security and retirement income?
Vermont is one of the eight states that still tax Social Security, with a full exemption below $50,000 of AGI single and $65,000 joint, phasing out above that.
What surprises people most about Vermont income tax?
Vermont taxes capital gains at ordinary rates but allows a partial exclusion for certain long-held assets.