Vermont's top rate of 8.75% is among the highest in the country, and above $150,000 of federal AGI a floor kicks in — you pay the greater of your calculated Vermont tax or 3% of your federal AGI.
| Gross pay | — |
| Federal income tax | — |
| Social Security6.2% up to $184,500 | — |
| Medicare1.45%, no cap | — |
| State income tax | — |
| 401(k) contribution | — |
| Health and HSA | — |
Useful if you are comparing a job that pays monthly against one that pays every two weeks, or working out what a raise is worth per paycheck.
| Pay schedule | Gross | Take-home |
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This is Vermont's most distinctive provision and it catches people out. For taxpayers with federal adjusted gross income above $150,000, Vermont charges the greater of two amounts: the tax produced by its ordinary bracket calculation, or a flat 3% of federal AGI.
The purpose is to stop high earners from using deductions and credits to reduce their Vermont liability below a floor. The effect is that above $150,000, bracket arithmetic may not determine your bill at all.
This calculator applies the ordinary brackets and does not model the minimum. For most earners above $150,000 the bracket calculation exceeds 3% of AGI anyway, so it makes no difference — but for someone with substantial deductions it can, and the figure shown would then be too low.
Vermont taxes 3.35% up to $49,400 of taxable income for a single filer, 6.6% to $119,700, 7.6% to $249,700, and 8.75% above. Only California, Hawaii, New York, New Jersey, Oregon, Minnesota and Massachusetts's surtax reach higher.
The jump from 3.35% to 6.6% is the largest single step in the schedule and it arrives at $49,400 — roughly doubling the marginal rate at a fairly ordinary income. That step, rather than the top rate, is what most Vermont earners actually feel.
The standard deduction is $7,650 for a single filer and $15,300 for a couple, with a $5,300 personal exemption per person including dependents. The exemption is generous; the deduction is not.
Vermont shares a long border with New Hampshire, which taxes no income at all, and the Connecticut River crossings make cross-border living and working entirely routine.
Vermont taxes its residents on all income regardless of where earned, and taxes non-residents on Vermont-source income. A Vermont resident working in New Hampshire pays Vermont on those wages with no credit to offset, because New Hampshire levies nothing to credit against. The arrangement runs strongly in one direction.
Vermont exempts Social Security below income thresholds, and provides exclusions for certain pension income. No Vermont municipality levies an income tax, though property taxes are high and fund a state-level education financing system.
For taxpayers with federal AGI above $150,000, Vermont charges the greater of the ordinary bracket calculation or 3% of federal AGI. It prevents deductions from reducing liability below that floor.
If your federal AGI exceeds $150,000 and you have substantial deductions, the 3% minimum may exceed the bracket calculation shown here, which does not model it.
At $49,400 of taxable income for a single filer. That step roughly doubles the marginal rate and is what most Vermont earners actually notice.
Vermont tax on all of it. New Hampshire levies nothing, so there is no credit to offset your Vermont liability.