Estimate your take-home pay in Vermont for 2026. The state levies income tax with a top rate of 8.75% (3.35% to 8.75% across 5 brackets). This means a portion of every paycheck goes toward state income tax in addition to federal withholding, Social Security, and Medicare.
Vermont Tax Snapshot
- State Income Tax
- 8.75% top rate
- Sales Tax (state + local avg)
- 6.24%
- Avg Property Tax Rate
- 1.83%
- Median Home Value
- $301,300
- State Minimum Wage
- $14.01/hr
Did You Know?
Vermont has one of the highest combined income and property tax burdens.
How Vermont Taxes Affect Your Paycheck
When you earn a paycheck in Vermont, your employer withholds federal income tax, Social Security (6.2%), and Medicare (1.45%). On top of that, the state withholds income tax based on 3.35% to 8.75% across 5 brackets. The state minimum wage is $14.01 per hour, which sets the floor for hourly workers. Understanding these deductions helps you budget effectively and plan for the average 1.83% property tax rate on homes valued around $301,300.
Vermont also levies a combined state and average local sales tax of 6.24%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.