Vermont Income Tax Calculator 2026
Calculate your combined federal and Vermont state income tax for 2026. See your federal brackets, Vermont tax, effective rate, and take-home pay — all calculated privately in your browser.
Vermont Income Tax: Graduated Brackets Up to 8.75%
Vermont uses a progressive income tax system with 4 brackets. Rates range from 3.35% to 8.75%, with higher income taxed at higher rates. Vermont bases its income tax on federal adjusted gross income with Vermont-specific adjustments.
Like federal taxes, Vermont's system is marginal — only the income within each bracket is taxed at that bracket's rate. Combined with federal taxes (10%–37%), Vermont residents can face a total marginal rate of up to 45.75% on their highest dollars of income.
Vermont Tax Brackets for 2026 (Single Filer)
The Vermont income tax brackets for single filers are:
- 3.35% on income from $0 to $45,400
- 6.6% on income from $45,400 to $110,050
- 7.6% on income from $110,050 to $229,550
- 8.75% on income over $229,550
Your marginal rate is the rate on your last dollar of income. Your effective rate (total tax divided by total income) is always lower because of the progressive structure.
Tips to Lower Your Vermont Tax
Maximize pre-tax retirement contributions to reduce both federal and Vermont taxable income. The 2026 401(k) limit is $24,500 ($32,500 with catch-up for age 50+). If Vermont conforms to federal deductions, your standard deduction and itemized expenses also reduce your state tax liability.