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How Vermont Income Tax & Salary Deductions Work

Vermont uses a graduated income tax system with a top marginal rate of 8.75%. When combined with federal taxes, Social Security, and Medicare, understanding your total tax burden is essential for financial planning.

Did you know? Vermont has a population of 647K with its capital in Montpelier. The graduated tax system means different portions of your income are taxed at different rates.

With 3 major cities including Burlington, South Burlington, Rutland,Vermont offers diverse employment opportunities across multiple industries. Use our calculator above to see your personalized tax breakdown.

Understanding Your Vermont Paycheck & Tax Withholdings

When you receive your paycheck in Vermont, several deductions are automatically taken out. These include federal income tax state income tax (8.75% top rate), Social Security (6.2%), and Medicare (1.45%). Our calculator breaks down each of these components so you can see exactly where your money goes.

Vermont Federal & State Tax Rates for 2026

The Vermont graduated income tax has a top marginal rate of 8.75%. Combined with federal taxes ranging from 10% to 37%, your effective tax rate depends on your total income, filing status, and deductions.

Where Your Money Goes in Vermont

74.1%
11.7%
6.2%
1.5%
6.6%

Net Pay

$55,580

Federal Tax

$8,761

Social Security

$4,650

Medicare

$1,088

State Tax

$4,922

Tax TypeRateAmount
Federal Tax11.68%$8,761
Social Security6.20%$4,650
Medicare1.45%$1,088
State Tax6.56%$4,922
Total Tax25.89%$19,420

Popular Cities in Vermont

Browse salary calculators for the most popular cities. Cities with active calculators are highlighted.

Frequently Asked Questions

On a salary of $75,000 in Vermont, you would pay approximately $19,420 in total taxes, which represents an effective tax rate of 25.89%. This includes federal income tax, state income tax (8.75% top rate), Social Security, and Medicare.

Tax Tips & Guides for Vermont

Helpful tax articles from the Northeast region and beyond