How to Use Vermont Income Tax Calculator Online
Individual income tax in the State of Vermont is administered by the Vermont Department of Taxes on Form IN-111. Vermont operates a progressive 4-bracket income tax structure with marginal rates of 3.35%, 6.60%, 7.60%, and 8.75% (with higher marginal rates for earners exceeding $500,000). Vermont distinguishes itself with progressive family-friendly benefits, including standard deductions ($7,650 Single / $15,350 MFJ), $5,100 personal exemptions, a fully refundable $1,000 Vermont Child Tax Credit (VCTC) per child age 5 and under, and zero local municipal wage taxes. Try & Tool's Vermont Income Tax Calculator computes your exact Department of Taxes state liability, VCTC refundable credits, IRS federal income taxes, statutory FICA withholdings (Social Security & Medicare), and net take-home pay across 5 verified tax years (2022 to 2026).
Enter Gross Salary or Hourly Compensation
Input your gross annual salary or hourly wage rate and select your pay period (Weekly, Bi-Weekly, Semi-Monthly, Monthly, or Annual).
Select Tax Filing Year & Status
Choose tax years 2022 through 2026 and select your filing status (Single, Married Filing Jointly, Married Filing Separately, or Head of Household) to apply Vermont standard deductions and $5,100 personal exemptions.
Review Vermont Progressive Brackets & FICA Taxes
The engine automatically applies Vermont's progressive tax brackets (3.35%, 6.60%, 7.60%, 8.75%) and calculates statutory FICA withholdings (6.2% Social Security up to $176,100 cap and 1.45% Medicare).
Include Vermont Child Tax Credits & Pre-Tax Deductions
Add qualifying children under age 6 to claim the $1,000 Vermont Child Tax Credit and include 401(k)/HSA pre-tax contributions for a comprehensive net take-home pay breakdown.
1. Vermont's 4 Progressive State Income Tax Brackets (3.35% to 8.75%)
Vermont taxes individual taxable income through four progressive brackets administered on Form IN-111, indexed annually for inflation:
- 3.35% Bracket: Taxable income up to ~$45,400 for Single filers (~$75,850 Married Filing Jointly).
- 6.60% Bracket: Taxable income between ~$45,400 and ~$110,050 (~$75,850 to ~$183,100 MFJ).
- 7.60% Bracket: Taxable income between ~$110,050 and ~$229,550 (~$183,100 to ~$279,000 MFJ).
- 8.75% Top Standard Bracket: Taxable income exceeding ~$229,550 for Single / ~$279,000 for Married Filing Jointly.
- High-Earner Surtax: Taxable income exceeding $500,000 is subject to top-tier marginal taxation under recent legislative updates.
2. Vermont Standard Deductions & $5,100 Personal Exemptions
Vermont provides baseline tax relief through state-specific standard deductions and personal exemption allowances on Form IN-111:
- Standard Deductions: $7,650 for Single / MFS, $15,350 for Married Filing Jointly, and $11,500 for Head of Household.
- Personal Exemptions: $5,100 deduction per taxpayer, spouse, and qualifying dependent claimed.
- Effective Low-Income Protection: A single worker with no dependents owes $0 in Vermont state tax on gross income up to ~$12,750 ($7.65k standard deduction + $5.1k exemption).
3. The $1,000 Vermont Child Tax Credit (VCTC)
Vermont enacted one of the most generous state-level child tax credits in the United States:
- $1,000 Per Child: Fully refundable credit for each qualifying child aged five and under at the end of the tax year.
- Refundable Mechanism: If the credit exceeds your state tax liability, the State of Vermont refunds the difference directly to you.
- Income Phaseout: Begins phasing out at Federal AGI over $125,000, reducing by $20 per $1,000 of income above the threshold.
4. Retirement, Military & Higher Education (VHEIP 529) Tax Relief
Vermont provides targeted statutory exemptions for seniors, veterans, and college savings:
- Social Security Exemption: Complete or partial state tax exemption for filers with AGI under $50,000 (Single) or $65,000 (MFJ).
- Military Pension Exemption: Up to $10,000 of military retirement pay is exempt from Vermont state income tax.
- VHEIP 529 Credit: 10% state income tax credit on contributions up to $2,500 (Single) / $5,000 (MFJ) per beneficiary per year.
- 0% Local Municipal Taxes: Burlington, South Burlington, Rutland, Barre, and Montpelier levy 0% local wage taxes.
5. Vermont vs. New England & Northeast Regional Multi-State Comparison
Comparing Vermont's take-home pay against neighboring New England and Northeast states:
- vs. New Hampshire (0% Wage Tax): New Hampshire levies no personal wage tax, while Vermont funds robust statewide public services and childcare credits.
- vs. Massachusetts (5.00% Flat + 4% Surtax): Vermont's 3.35% bracket provides lower state tax for entry and middle earners.
- vs. New York (Up to 10.90%): Vermont has a lower top standard rate than New York state.
- vs. Maine (Up to 7.15%): Both states feature progressive brackets with competitive child and education credits.
Vermont vs. New England States Take-Home Pay Matrix ($100,000 Salary)
| State | State Tax Structure | Est. State Tax Paid | Est. Federal & FICA Tax | Total Net Take-Home Pay | Difference vs Vermont |
|---|---|---|---|---|---|
| Vermont (VT - 2024/2026) | 3.35% - 8.75% Graduated | $4,920 | $21,810 | $73,270 | Baseline ($0) |
| New Hampshire (NH) | 0.0% Individual Wage Tax | $0 | $21,810 | $78,190 | +$4,920 in NH |
| Massachusetts (MA) | 5.00% Flat Rate + PFML | $4,850 | $21,810 | $73,340 | +$70 in MA |
| Connecticut (CT) | Graduated up to 5.00% / 5.50% | $4,720 | $21,810 | $73,470 | +$200 in CT |
| Rhode Island (RI) | 3.75% - 5.99% + 1.2% TDI | $5,060 | $21,810 | $73,130 | -$140 in RI |
| Maine (ME) | Graduated up to 5.80% / 6.75% | $5,210 | $21,810 | $72,980 | -$290 in ME |