Vermont Income Tax Brackets 2026
What are the Vermont income tax brackets for 2026?
Vermont uses 4 graduated brackets for 2026, from 3.35% on the first dollars of taxable income up to a top rate of 8.75%. After the state's standard deduction of $7,650 single ($15,300 joint), a single filer on $75,000 pays $2,490 of Vermont income tax.
Vermont taxes income through 4 graduated brackets in 2026, topping out at 8.75%. The first bracket covers taxable income up to $49,400, and the top rate does not bite until taxable income passes $249,700, which is why the worked example below matters more than the headline rate.
Updated October 29, 2026
Vermont brackets for single filers, 2026
Rates apply to Vermont taxable income: gross pay minus the standard deduction and any personal exemption. In Vermont the schedule fills from the bottom up: the first $49,400 of taxable income pays 3.35%, and only the income above each threshold pays the next rate up.
| Taxable income (single) | Rate |
|---|---|
| $0 to $49,400 | 3.35% |
| $49,401 to $119,700 | 6.6% |
| $119,701 to $249,700 | 7.6% |
| $249,701 and up | 8.75% |
Vermont brackets for married filing jointly, 2026
| Taxable income (joint) | Rate |
|---|---|
| $0 to $82,500 | 3.35% |
| $82,501 to $199,450 | 6.6% |
| $199,451 to $304,000 | 7.6% |
| $304,001 and up | 8.75% |
Standard deduction and exemption in Vermont
The 2026 standard deduction is $7,650 for single filers and $15,300 for married filing jointly. Vermont also allows a personal exemption of $5,300 for single filers and $10,600 for joint filers, which comes off taxable income alongside the standard deduction. In Vermont, that means the first $12,950 of a single filer's pay is taxed at zero before the schedule even starts.
Worked example: the brackets on a $75,000 salary
A single filer earning $75,000 in Vermont first removes the standard deduction and personal exemption, leaving $62,050 of taxable income. Each bracket then takes its slice:
| Bracket range | Income in bracket | Rate | Tax |
|---|---|---|---|
| $0 to $49,400 | $49,400 | 3.35% | $1,655 |
| $49,401 to $119,700 | $12,650 | 6.6% | $835 |
Total Vermont income tax: $2,490, an effective rate of 3.32% of gross pay. The marginal rate, the rate on the next dollar Vermont taxes, is 6.6%; a raise that crosses into that bracket pays 6.6% only on the dollars above the line, never on the whole salary.
Vermont income tax on common salaries (single filer)
| Gross salary | Vermont income tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $906 | 2.27% | 3.35% |
| $50,000 | $1,241 | 2.48% | 3.35% |
| $75,000 | $2,490 | 3.32% | 6.6% |
| $100,000 | $4,140 | 4.14% | 6.6% |
| $150,000 | $7,613 | 5.08% | 7.6% |
How Vermont compares with other states
How Vermont compares: its top rate of 8.75% ranks 9th highest among the 42 taxing jurisdictions for 2026, and the $2,490 owed on a $75,000 salary ranks 31st highest, between Kentucky ($2,507) and North Carolina ($2,484).
The shape of the schedule matters as much as the rates. Vermont's top rate only starts at taxable income above $249,700, so a $75,000 salary never sniffs it: the highest rate actually touched is 6.6%, and the top slice of the example above contributes $835, about 34% of the total bill. The other 66% is spread across the lower 3 brackets.
Joint filers in Vermont get wider thresholds, but not double: the top joint bracket starts at $304,000 against $249,700 for singles, a ratio of 1.22 to 1. Two similar earners can therefore push each other into the top rate sooner as a couple than they would alone.
To turn these figures into an actual paycheck, use the Vermont income tax calculator for any salary, or the Vermont take-home pay calculator to see the same salary after federal tax and FICA as well. Per pay period, the paycheck calculator breaks the Vermont result down further, and the state tax brackets hub lines up all 50 states and DC side by side.
Frequently asked questions
What is the top income tax rate in Vermont for 2026?
The top marginal rate in Vermont is 8.75%, and it applies only to taxable income above $249,700 for single filers. Every dollar below that line pays less, starting at 3.35% on the first slice.
How many tax brackets does Vermont have?
Vermont has 4 brackets for 2026, running from 3.35% on the first slice of taxable income to 8.75% at the top. Joint filers use a wider schedule, with a standard deduction of $15,300 instead of $7,650.
What is the standard deduction in Vermont for 2026?
The standard deduction is $7,650 for single filers and $15,300 for married filing jointly. A personal exemption of $5,300 single and $10,600 joint also applies.
How much Vermont income tax is owed on $75,000?
A single filer earning $75,000 pays $2,490 of Vermont income tax for 2026 in this model, an effective rate of 3.32%, even though the top bracket reached is 6.6%.