Vermont Tax Brackets
How to read this: Only the income within each bracket is taxed at that rate. Your total tax is the sum across brackets.
| Income Range | Tax Rate |
|---|---|
| $0 - $49,400 | 3.35% |
| $49,400 - $119,700 | 6.60% |
| $119,700 - $249,700 | 7.60% |
| $249,700+ | 8.75% |
Brackets shown for single filers. Married filing jointly brackets may differ. Use the calculator above to see your specific situation.
Key Facts That Affect Your Take-Home Pay
- Vermont uses a progressive income tax system with four brackets, starting at 3.35% for the first $44,700 of income (single) or $74,600 (married) and escalating to a top rate of 8.75% for income above $226,650 (single) or $377,750 (married), making Vermont's bracket structure relatively simple but with high rates across all brackets.
- Vermont's progressive brackets have a relatively high starting rate (3.35%) compared to many other progressive states that start at 1%-3%, meaning even lower earners pay a higher percentage in Vermont. For a $100,000 earner, income is taxed across multiple brackets creating an effective rate around 5%-6.5%, not the top 8.75% rate.
- Vermont does not levy income taxes locally, ensuring no geographic variations in income tax. All Vermont residents have the same income tax structure: only the state progressive brackets apply.
What People Get Wrong
“Progressive tax means I'll pay the top 8.75% on all my income in Vermont.”
Vermont's progressive system starts at 3.35% for the first $44,700-$74,600 of income (depending on filing status), and most middle-income earners pay effective rates around 5%-6.5%, not 8.75%. The 8.75% rate only applies to income above $226,650 (single) or $377,750 (married). Someone earning $100,000 pays an effective rate around 5%-6.5% (~ $5,000-$6,500 annually).
“Vermont has low taxes because it's a small state.”
Vermont's income tax starts at 3.35% (relatively high starting rate) and tops out at 8.75%, which is among the higher rates in the nation. A $100,000 earner pays an effective rate around 5%-6.5%, while the same earner in a flat-tax state like Pennsylvania would pay $3,070 (3.07% flat, though PA may have local EIT). Vermont's high starting rate means even lower earners pay more than in many other states, and high earners face the 8.75% top rate.
“The four brackets mean my tax is simple like flat-tax states.”
While Vermont has only four brackets (simpler than states with many brackets), the brackets are progressive with rates ranging from 3.35% to 8.75%. Unlike flat-tax states where everyone pays the same percentage, Vermont's progressive system means higher earners pay significantly higher effective rates The high starting rate (3.35%) also means even lower earners pay more than in states with lower starting brackets or flat taxes.
