Vermont Income Tax Calculator
Figure basis: Official Vermont Department of TaxesVermont income tax is calculated on your taxable income after deductions and exemptions. This calculator estimates your Vermont state income tax liability for the current tax year. Enter your annual gross income, choose your filing status (single, married filing jointly, married filing separately, or head of household), and add any pre-tax deductions to see your estimated state tax, effective tax rate, and marginal bracket. Results update in real time as you adjust your inputs. The calculator covers Vermont state income tax only; federal income tax, FICA payroll taxes, and any local income taxes your city or county imposes are separate. All rates and brackets are sourced directly from Vermont Department of Taxes and are verified for the current tax year. Use this tool alongside the federal income tax calculator to see your combined total tax liability. Effective rate and marginal rate are both shown so you can evaluate the impact of additional income, filing status changes, or increased pre-tax contributions to a 401(k) or similar plan.
Vermont uses graduated income tax brackets. A single filer earning $60,000 owes $1,849.53 in state income tax, an effective rate of 3.08% and a marginal rate of 6.6%. Enter your own income and filing status below.
Bracket breakdown
| Income range | Rate | Tax in bracket |
|---|
How Vermont income tax works
Vermont imposes a four-bracket graduated income tax under 32 V.S.A. Sec. 5822, applied to Vermont taxable income (federal AGI with Vermont modifications, less the Vermont standard deduction and $5,300-per-person personal exemption). For tax year 2025 rates range from 3.35% to a top rate of 8.75% (single income over $249,700; married filing jointly over $304,000). For AGI over $150,000, Vermont tax is the greater of the rate-schedule amount or 3% of AGI less interest from U.S. obligations. Vermont taxes capital gains largely as ordinary income (with a limited exclusion) and imposes its own AMT. Your result updates the page link, so you can copy a permalink to any calculation.
taxable income = gross income - standard deduction
state income tax = sum of (income in each bracket x bracket rate / 100)
effective rate = state income tax / gross income x 100
marginal rate = rate of the highest bracket reached
Vermont income tax brackets (2025)
The table below shows the Vermont graduated income tax brackets for single filers, as published by the Vermont Department of Taxes and verified Jul 16, 2026. Thresholds for other filing statuses may differ; use the calculator above to select your status.
| Income range | Rate | Source |
|---|---|---|
| $0.00 to $49,399.00 | 3.35% | Vermont Department of Taxes |
| $49,401.00 to $119,699.00 | 6.6% | Vermont Department of Taxes |
| $119,701.00 to $249,699.00 | 7.6% | Vermont Department of Taxes |
| Over $249,701.00 | 8.75% | Vermont Department of Taxes |
The minimum tax and capital-gains rules Vermont filers miss
Vermont runs a four-bracket tax that tops out at 8.75%, one of the highest rates in New England, reached at $249,700 of taxable income for single filers and $304,000 for joint filers. Those brackets are only the starting point. Once your adjusted gross income passes $150,000, Vermont applies a floor: your tax is the greater of the regular schedule amount or 3% of AGI, less interest from U.S. government obligations. High earners with large deductions can find that the 3% floor, not the bracket table, sets their bill.
Capital gains are the other place Vermont diverges from federal treatment. There are no preferential long-term rates here. Most gains, including ordinary stock sales, are taxed as regular income and can reach the full 8.75%. Vermont offers a limited 40% exclusion, but only for gains on qualifying Vermont business assets held more than three years, so everyday investment gains rarely benefit.
Vermont also keeps its own standard deduction ($7,650 single, $15,300 joint) and adds a $5,300 personal exemption per person, both untied to the federal figures, plus a state alternative minimum tax. The result is that a simple bracket lookup understates the planning that Vermont income actually requires, especially for anyone selling investments or crossing the $150,000 AGI mark.
Vermont income tax: frequently asked questions
How much is the Vermont income tax on a $60,000 salary?
A single filer earning $60,000 a year in Vermont has a taxable income of $52,350.00 after the standard deduction. The computed state income tax is $1,849.53, an effective rate of 3.08%. Enter your own income above for an exact figure.
What is the Vermont state income tax rate?
Vermont has graduated income tax brackets. The marginal rate depends on your taxable income and filing status. For a single filer earning $60,000 the marginal rate is 6.6%.
What filing statuses does Vermont income tax apply to?
Vermont income tax applies to single filers, married couples filing jointly, head of household filers and married couples filing separately. Bracket thresholds and standard deductions may differ by filing status.
What are Vermont's 2025 income tax brackets and rates?
Vermont has four brackets for 2025. Single filers pay 3.35% on $0-$49,400; 6.6% on $49,401-$119,700; 7.6% on $119,701-$249,700; and 8.75% on income above $249,700. Married filing jointly thresholds are: 3.35% on $0-$82,500; 6.6% on $82,501-$199,450; 7.6% on $199,451-$304,000; and 8.75% above $304,000. 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 2025?
Vermont has its own standard deduction and does not conform to the federal amount. For 2025, Vermont's standard deduction is $7,650 for single filers and married filing separately, $15,300 for married filing jointly, and $11,450 for head of household. Vermont also allows a personal exemption deduction of $5,300 per person (self, spouse or civil-union partner, and each dependent), plus an additional $1,250 per box checked for being born before January 2, 1961 or blind. Vermont Statutes Title 32 §5811(21).
Official sources
- Vermont income tax rates (tax year 2025): Vermont Department of Taxes, as at Jul 16, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 11 June 2026. See our methodology. General information, not financial or tax advice.