Key Tax Facts: Vermont
- Top rate of 8.75% on income above $204,000 (single)
- Social Security is partially exempt for lower-income filers
- No deduction for federal income taxes paid
- No local income taxes beyond state and school district rates
Vermont State Income Tax Overview
Vermont uses a graduated income tax with four brackets ranging from 3.35% to 8.75% for 2024. Single filers reach the top 8.75% rate on income above $213,150. Vermont generally conforms to federal adjusted gross income and provides a standard deduction equal to the federal amount. The state taxes Social Security income but offers an exemption for lower-income residents. Vermont also has a meals and rooms tax and a 6% general sales tax. Vermont offers income-tested property tax adjustments for qualifying homeowners and renters, which can provide meaningful relief for lower- and moderate-income residents.
Vermont Income Tax Brackets (Single Filers, 2025)
These are the Vermont state income tax brackets for single filers. Married-filing-jointly brackets use wider income thresholds. Only the income within each bracket is taxed at that rate -- not your entire income.
| Taxable Income (Single) | Tax Rate |
|---|---|
| $0 - $47,900 | 3.35% |
| $47,900 - $116,000 | 6.6% |
| $116,000 - $242,000 | 7.6% |
| Over $242,000 | 8.75% |
Source: Vermont Department of Taxes. Brackets shown are for single filers; married-filing-jointly thresholds are wider.
What a Vermont Resident Actually Pays: A Worked Example
Your effective tax rate is almost always lower than your top bracket. Here is how the math works for a single filer earning $65,000.
Enter Your Tax Information
Frequently Asked Questions -- Vermont Income Tax
Does Vermont have a state income tax?
Yes. Vermont imposes a state income tax with a top marginal rate of 8.75%. This is separate from your federal income tax obligation.
What is the Vermont income tax rate for 2025?
Vermont uses a graduated income tax system with rates from 3.35% to 8.75%. Only the income within each bracket is taxed at that bracket's rate -- not your entire income.
Do I have to file a Vermont state tax return?
Most full-year Vermont residents with income above the state filing threshold must file a state return. Check the Vermont Department of Taxes for current thresholds and requirements.
How accurate is this estimate?
This is a planning estimate of your federal income tax only. It does not calculate Vermont state tax, and it does not account for state deductions, credits, exemptions, or local taxes. Use the Vermont rate schedule above as a reference, and verify with official Vermont tax forms or a qualified tax professional.
Does this calculator include federal income tax?
Yes. The calculator estimates your 2025 federal income tax using the official IRS 2025 brackets. It does not compute your Vermont state tax -- see the Vermont rate schedule below to work that out.
Where can I find official Vermont tax forms?
Official forms, instructions, and filing guidance are available at the Vermont Department of Taxes.
What is the sales tax rate in Vermont?
Vermont's combined state and average local sales tax rate is 6.24%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are Vermont 2025 state taxes due?
2025 taxes are generally filed in 2026. The Vermont filing deadline is April 15, 2026, the same as the federal deadline.
Understanding Your Vermont Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and Vermont state tax owed to the Vermont Department of Taxes. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your Vermont Bill
Pre-tax retirement contributions reduce your federal and Vermont taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, Vermont-specific credits and deductions that don't exist at the federal level are listed at the Vermont Department of Taxes -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
Vermont's combined state-plus-average-local sales tax rate is 6.24%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Vermont Department of Taxes or a qualified tax professional for guidance specific to your situation.