Vermont Paycheck Calculator

Basic Info
Deductions

Insurance Premiums

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Your Vermont Paycheck Results

Calculating your paycheck…

Take-Home Pay: $0.00
Per Pay Period: $0.00

Tax Breakdown

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Federal Income Tax: $0.00
State Income Tax (VT): $0.00
Social Security: $0.00
Medicare: $0.00
Additional Medicare: $0.00
Total Tax: $0.00

Deduction Breakdown

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401(k) Contribution: $0.00
Traditional IRA: $0.00
HSA Contribution: $0.00
FSA Contribution: $0.00
Health Insurance: $0.00
Dental Insurance: $0.00
Vision Insurance: $0.00
Other Deductions: $0.00
Total Deductions: $0.00
Gross Annual Income: $0.00
Effective Tax Rate: 0.00%

Vermont State Income Tax Information

Vermont employs a progressive state income tax system with four brackets:

  • 3.35% on income up to $45,400 (single) / $75,850 (married)
  • 6.60% on income over $45,400 (single) / $75,850 (married)
  • 7.60% on income over $123,525 (single) / $210,925 (married)
  • 8.75% on income over $253,525 (single) / $423,275 (married)

These rates apply to taxable income after deductions and exemptions.

Standard Deduction

For the 2025 tax year, Vermont’s standard deduction amounts are:

  • Single: $15,000
  • Married Filing Jointly: $30,000
  • Head of Household: $22,500

Additional deductions are available for individuals aged 65 and older or those who are blind.

Retirement Income

Vermont taxes most forms of retirement income, including Social Security benefits, pensions, and 401(k) distributions. However, there are exemptions:

  • Up to $10,000 of military retirement income is exempt.
  • Up to $10,000 of other retirement income (e.g., government pensions) may be exempt if specific conditions are met.

These exemptions are subject to income limits and filing status.

FICA Taxes

Vermont follows federal FICA tax rates:

  • Social Security: 6.2% on income up to $176,100
  • Medicare: 1.45% on all income
  • Additional Medicare Tax: 0.9% on income over $200,000 (single) / $250,000 (married)

Pre-Tax Deductions

Vermont allows various pre-tax deductions, including contributions to:

  • Health Savings Accounts (HSAs)
  • Flexible Spending Accounts (FSAs)
  • 401(k) and 403(b) retirement plans
  • Dependent Care Assistance Programs

These deductions reduce taxable income and can lower state income tax liability.

Tax Credits

Vermont offers several tax credits to eligible residents:

  • Vermont Child Tax Credit: Provides financial relief to families with qualifying children.
  • Property Tax Credit: Assists homeowners with paying property taxes.
  • Renter Credit: Available to eligible renters to offset rental costs.
  • Charitable Contribution Tax Credit: Encourages donations to qualifying charitable organizations.

Eligibility and credit amounts vary based on income, filing status, and other factors.

Interesting Facts About Vermont Taxes

  • Vermont’s top marginal income tax rate is 8.75%, one of the higher rates in the U.S.
  • The state does not impose a sales tax, but it does have a 6% statewide sales tax on most goods and services.
  • Vermont offers a progressive property tax system, with rates varying by municipality.

Frequently Asked Questions (FAQs)

Does Vermont tax Social Security benefits?
Yes, Vermont taxes Social Security benefits, but exemptions may apply based on income and filing status.
What is the standard deduction in Vermont?
The standard deduction for 2025 is $15,000 for single filers, $30,000 for married filing jointly, and $22,500 for head of household.
Are there tax credits available for renters in Vermont?
Yes, Vermont offers a refundable Renter Credit to eligible renters.
What types of retirement income are taxed in Vermont?
Vermont taxes most forms of retirement income, including Social Security benefits, pensions, and 401(k) distributions, with certain exemptions available.