Tax Year 2026Updated July 23, 2026

Vermont Paycheck Calculator 2026

Q: What taxes are deducted from my Vermont paycheck?

Your Vermont paycheck has deductions for federal income tax (10%-37%), FICA (Social Security + Medicare), and Vermont state income tax using graduated brackets (4 brackets).

Q: How do Vermont's income tax brackets work?

Vermont uses a graduated (progressive) income tax with 4 brackets. Each bracket applies only to income within that range, not your entire income. For example, if you earn enough to reach the third bracket, only the income above the second bracket's threshold is taxed at the third bracket's rate.

Q: What tax bracket am I in for Vermont?

Your Vermont bracket depends on your taxable income (after deductions) and filing status. The calculator above shows your effective state tax rate, which is usually lower than your marginal bracket rate because lower portions of your income are taxed at lower rates.

Q: Does Vermont conform to the OBBBA overtime and tips deductions?

Vermont has not yet confirmed whether it will conform to the federal OBBBA deductions for overtime pay and tip income. Until the state legislature or tax authority acts, these deductions reduce only your federal taxable income. Your Vermont state income tax on those wages remains unchanged.

Q: Does Vermont tax Social Security benefits?

Yes. Vermont is one of a small number of states that taxes Social Security benefits at the state level. Vermont taxes Social Security benefits above certain AGI thresholds. Single: full SS exemption below $50,000 AGI, phased exemption $50,000-$75,000, fully taxable above $75,000. MFJ: full SS exemption below $65,000 AGI, phased $65,000-$75,000, fully taxable above $75,000 (verified_primary, Sweep B 2026-07-23). Most pension and retirement income is fully taxed at VT graduated rates. Most states fully exempt Social Security from state income tax, making this a notable distinction for retirees living in or considering Vermont.

This calculator estimates your take-home pay as a Vermont worker after federal income tax, FICA, and Vermont's 4-bracket graduated income tax (rates from 3.35% to 8.75%). Enter your salary, pay frequency, and filing status below.

Vermont Income Tax Brackets 2026

The rates below apply to taxable income after subtracting Vermont's standard deduction of $15,700 (single) or $31,400 (MFJ).

Taxable Income	Rate
$0 - $45,400	3.35%
$45,400 - $110,450	6.60%
$110,450 - $229,550	7.60%
Over $229,550	8.75%

Source: Vermont Tax Authority

Social Security Taxation in Vermont

Vermont is one of a small number of states that taxes Social Security benefits. Vermont taxes Social Security benefits above certain AGI thresholds. Single: full SS exemption below $50,000 AGI, phased exemption $50,000-$75,000, fully taxable above $75,000. MFJ: full SS exemption below $65,000 AGI, phased $65,000-$75,000, fully taxable above $75,000 (verified_primary, Sweep B 2026-07-23). Most pension and retirement income is fully taxed at VT graduated rates. This affects retirees in Vermont and is an important consideration when comparing the state's overall tax burden to states that fully exempt Social Security.

How Your Vermont Paycheck Is Calculated

Gross pay: Your annual salary divided by the number of pay periods.
Federal income tax: 2026 progressive brackets (10%-37%) after the federal standard deduction of $16,100 (single) or $32,200 (MFJ).
Social Security: 6.2% on wages up to $184,500.
Medicare: 1.45% on all wages, plus 0.9% above $200,000 (single).
Vermont state income tax: 4-bracket progressive system (3.35% to 8.75%).

Vermont Standard Deduction

Vermont's standard deduction for 2026 is $15,700 for single filers and $31,400 for married filing jointly. This is subtracted from gross income before Vermont's tax brackets are applied. Note: the state deduction is separate from and much smaller than the federal standard deduction of $16,100.

Worked Examples

Example 1: $135,000/year - Head of Household, Monthly

Profile: $135,000 annual salary, Head of Household filer, paid monthly (12 paychecks/year)

Gross per period: $11,250.00
Federal income tax: -$1,449.25
Social Security: -$697.50
Medicare: -$163.13
Vermont state income tax: -$448.45
Net take-home pay: $8,491.67 per paycheck ($101,900/year)
Effective total tax rate: 24.52%

Example 2: $42,000/year - Single, Biweekly

Profile: $42,000 annual salary, Single filer, paid biweekly (26 paychecks/year)

Gross per period: $1,615.38
Federal income tax: -$110.00
Social Security: -$100.15
Medicare: -$23.42
Vermont state income tax: -$33.89
Net take-home pay: $1,347.92 per paycheck ($35,046/year)
Effective total tax rate: 16.56%

Example 3: $48,000/year - Married Filing Jointly, Weekly

Profile: $48,000 annual salary, Married Filing Jointly filer, paid weekly (52 paychecks/year)

Gross per period: $923.08
Federal income tax: -$30.38
Social Security: -$57.23
Medicare: -$13.38
Vermont state income tax: -$10.69
Net take-home pay: $811.40 per paycheck ($42,193/year)
Effective total tax rate: 12.10%

Vermont Tax Notes

Graduated brackets: 4 brackets from 3.35% to 8.75%.

Vermont has a 1% local option sales tax available to municipalities. There are no local income taxes. Property taxes vary significantly by town and school district.

OBBBA Conformity

Vermont has not confirmed conformity with the federal OBBBA deductions for overtime and tips. Until the state legislature or tax authority acts, these deductions apply only on the federal return. Vermont state income tax on those wages remains unchanged.

Frequently Asked Questions

What taxes are deducted from my Vermont paycheck?

Your Vermont paycheck has deductions for federal income tax (10%-37%), FICA (Social Security + Medicare), and Vermont state income tax using graduated brackets (4 brackets).

How accurate is this paycheck calculator?

This calculator estimates take-home pay using 2026 federal and Vermont state tax rates. It models federal income tax, FICA, and state income tax. It does not include pre-tax deductions (401(k), HSA, health insurance premiums), post-tax deductions, or state-specific payroll taxes (disability insurance, paid leave). Your actual paycheck may differ.

How do Vermont's income tax brackets work?

Vermont uses a graduated (progressive) income tax with 4 brackets. Each bracket applies only to income within that range, not your entire income. For example, if you earn enough to reach the third bracket, only the income above the second bracket's threshold is taxed at the third bracket's rate.

What tax bracket am I in for Vermont?

Your Vermont bracket depends on your taxable income (after deductions) and filing status. The calculator above shows your effective state tax rate, which is usually lower than your marginal bracket rate because lower portions of your income are taxed at lower rates.

Does Vermont conform to the OBBBA overtime and tips deductions?

Vermont has not yet confirmed whether it will conform to the federal OBBBA deductions for overtime pay and tip income. Until the state legislature or tax authority acts, these deductions reduce only your federal taxable income. Your Vermont state income tax on those wages remains unchanged.

Does Vermont tax Social Security benefits?

Yes. Vermont is one of a small number of states that taxes Social Security benefits at the state level. Vermont taxes Social Security benefits above certain AGI thresholds. Single: full SS exemption below $50,000 AGI, phased exemption $50,000-$75,000, fully taxable above $75,000. MFJ: full SS exemption below $65,000 AGI, phased $65,000-$75,000, fully taxable above $75,000 (verified_primary, Sweep B 2026-07-23). Most pension and retirement income is fully taxed at VT graduated rates. Most states fully exempt Social Security from state income tax, making this a notable distinction for retirees living in or considering Vermont.