Vermont Capital Gains Tax Calculator
Vermont taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the Vermont income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the Vermont state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced Vermont Department of Taxes brackets for tax year 2024, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the Vermont state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the Vermont Department of Taxes so you can confirm any special rule that applies to you.
Vermont taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $1,319.93 in Vermont state tax, an effective rate on the gain of 6.60%.
How Vermont taxes capital gains
Vermont taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the Vermont bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
Vermont capital gains tax: frequently asked questions
How are capital gains taxed in Vermont?
Vermont taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the Vermont income tax brackets published by the Vermont Department of Taxes. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the Vermont Department of Taxes.
How much state tax will I pay on a $20,000.00 capital gain in Vermont?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $1,319.93 of Vermont state income tax for a single filer, an effective rate on the gain of 6.60%. Your figure depends on your total income and filing status; enter them above.
Does Vermont have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the Vermont Department of Taxes; this calculator uses the ordinary income method and links the source.
What are Vermont's 2024 income tax brackets and rates?
Vermont has four brackets for 2024. Single filers pay 3.35% on $0-$45,400; 6.6% on $45,401-$110,050; 7.6% on $110,051-$229,550; and 8.75% on income above $229,550. Married filing jointly thresholds are: 3.35% on $0-$75,850; 6.6% on $75,851-$183,400; 7.6% on $183,401-$279,450; and 8.75% above $279,450. Authority: Vermont Department of Taxes, Vermont Statutes Title 32 §5822.
How does Vermont tax capital gains?
Vermont taxes capital gains as ordinary income, rather than at the preferential rates that apply at the federal level. Vermont does provide a 40% exclusion for gains from the sale of qualifying Vermont business property held for more than three years (Vermont Statutes Title 32 §5811(21)(B)(i)). However, most investment capital gains, such as stock sales, are taxed at Vermont's regular income tax rates, which can reach 8.75%. This is a significant difference from federal treatment and affects investment planning for Vermont residents.
Is Vermont a high-tax state?
Vermont is generally considered a relatively high-tax state. Its top income tax rate of 8.75% is among the highest in New England and in the top tier nationally. Vermont also has property taxes that fund its public schools, which can be substantial. Vermont's sales tax rate is 6%. The combination of income, property, and sales tax makes Vermont's overall tax burden higher than the national average. Vermont funds a wide range of public services, including universal pre-kindergarten and a robust school funding system, which contributes to the higher tax levels.
What is Vermont's standard deduction for 2024?
Vermont conforms to the federal standard deduction amounts. For 2024, Vermont's standard deduction is $14,600 for single filers and married filing separately, $29,200 for married filing jointly, and $21,900 for head of household. Unlike some states that maintain their own lower standard deduction amounts, Vermont adopts the federal figures directly. Vermont Statutes Title 32 §5811(21).
Official sources
- Vermont income tax rates applied to capital gains (tax year 2024): Vermont Department of Taxes, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Vermont Department of Taxes.