Vermont Paycheck Calculator Official VT Rates
Calculate your real Vermont take-home pay using the same income tax brackets, standard deduction, and payroll rules published by the Vermont Department of Taxes and Department of Labor — not a generic, one-size-fits-all estimate.
📈 What If My Pay Changes?
Drag the slider to instantly see how a raise or pay cut moves your Vermont take-home pay through the state’s tax brackets.
How the Vermont Paycheck Calculator Works
Most paycheck calculators treat every state the same — plug in a generic bracket table and call it a day. Vermont deserves better than that. This tool pulls its rate schedule, standard deduction figures, and even a small but real payroll tax straight from the Vermont Department of Taxes and the Vermont Department of Labor, so what you see here reflects how the Green Mountain State actually taxes a paycheck, not a rounded-off approximation.
Vermont’s Progressive Income Tax Brackets
Vermont taxes income across four brackets that climb from 3.35% up to 8.75%, one of the higher top marginal rates in the country. Unlike a flat-tax state, every dollar you earn moves through these tiers in order — only the income that falls inside a given bracket is taxed at that bracket’s rate. Worth knowing: Vermont currently sets its personal exemption amount at $0, a holdover from federal tax law changes, so the state’s standard deduction is the only built-in shield reducing your taxable income before the brackets apply.
The Vermont Child Care Contribution: A Tax Most Calculators Miss
Since mid-2024, Vermont employers have paid a 0.44% payroll tax — the Child Care Contribution, created by Act 76 of 2023 — to help fund child care across the state. Employers must cover at least three-quarters of it themselves, but the law lets them pass up to one-quarter (0.11% of wages) along to employees through a paycheck deduction. Plenty of employers absorb the whole thing and you’ll never see it on a pay stub; others split it. Because the choice is employer-specific, this calculator gives you a toggle for it instead of guessing.
Vermont Minimum Wage and Overtime, Straight From the Department of Labor
Vermont’s minimum wage adjusts every January 1st for inflation, and the Department of Labor publishes the new figure each fall — it currently sits well above the $7.25 federal floor, with a tipped rate set at exactly half the full minimum wage. Overtime follows the federal Fair Labor Standards Act: 1.5x pay after 40 hours in a single week, with no separate daily overtime rule layered on top, for employers with two or more employees.
- No local income tax — only the state and federal governments tax Vermont wages directly; no city or town adds its own income tax.
- Earned sick time is required — most Vermont employees accrue up to 40 hours of paid sick time per year under state law.
- Social Security gets partial relief — Vermont can reduce or eliminate state tax on Social Security benefits below certain income thresholds, though that mainly applies to retirees rather than current paycheck income.
| Deduction | Rate | Applies To |
|---|---|---|
| Federal Income Tax | 10%–37% | Taxable income after deductions |
| Vermont State Income Tax | 3.35%–8.75% | VT taxable income across four progressive brackets |
| Social Security | 6.2% | Wages up to the current annual wage base |
| Medicare | 1.45% | All earned income |
| Additional Medicare Tax | 0.9% | Income above $200,000 (single) / $250,000 (married) |
| Vermont Child Care Contribution | Up to 0.11% (employee share) | Only if your employer chooses to withhold it — employers cover the rest |
Frequently Asked Questions
What are Vermont’s state income tax rates?
Vermont taxes income progressively across four brackets ranging from 3.35% to 8.75%, according to the Vermont Department of Taxes — among the higher top marginal rates of any U.S. state.
Does Vermont have a standard deduction?
Yes. The Vermont Department of Taxes sets the standard deduction by filing status — single filers and head of household get a lower amount, while married couples filing jointly receive roughly double, plus an additional amount for filers 65 or older or blind.
What is the Vermont Child Care Contribution, and does it come out of my paycheck?
It’s a payroll tax created by Act 76 of 2023 to fund child care. Employers must pay at least three-quarters of the 0.44% rate themselves, and may withhold up to an additional 0.11% from employee paychecks — but they aren’t required to, so many employees never see it on a pay stub at all.
What is Vermont’s minimum wage?
Vermont’s minimum wage is set by the Department of Labor and adjusts every January 1st for inflation, currently sitting well above the federal minimum of $7.25 per hour, with a tipped minimum wage equal to half the full rate.
Does Vermont have a personal or dependent exemption?
Not currently. Due to federal tax law changes, Vermont’s personal exemption amount is set to $0, so only the standard deduction reduces your Vermont taxable income — unlike some other states that still subtract a per-dependent exemption.
Are Social Security benefits taxed in Vermont?
Partially, depending on income. Vermont can fully or partially exempt Social Security benefits from state tax below certain federal adjusted gross income thresholds, though this mainly affects retirees rather than current wage earners using this calculator.
How does overtime work in Vermont?
Vermont follows the federal Fair Labor Standards Act, requiring 1.5x pay for hours worked beyond 40 in a single week, with no separate daily overtime threshold layered on top.
How accurate is this Vermont paycheck calculator?
This tool applies the actual bracket thresholds and standard deduction figures published by the Vermont Department of Taxes alongside current federal tax brackets and FICA rates. Actual withholding can still vary slightly based on your employer’s payroll system and your W-4VT elections.
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This calculator is built using rate schedules, standard deduction amounts, and payroll tax rules published by the Vermont Department of Taxes (tax.vermont.gov) and the Vermont Department of Labor (labor.vermont.gov), alongside current federal tax brackets and FICA rates, for general informational purposes only. It does not constitute tax or financial advice. Consult a licensed tax professional or payroll specialist for guidance specific to your situation.