Vermont uses progressive tax brackets. Higher portions of pay are taxed at higher rates.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.
How a Vermont paycheck is built
Every Vermont worker pays federal income tax, calculated on the W-4 you submitted to your employer using the IRS Publication 15-T tables. Federal income tax is followed by FICA: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies once year-to-date wages cross $200,000 single or $250,000 married filing jointly.
Vermont adds progressive state income tax. The bracket you fall into depends on filing status and taxable income. Verify current brackets with the Vermont Department of Taxes.
What changed recently in Vermont
- No major rate change for 2025-2026.
- Vermont Family and Medical Leave program voluntary opt-in for employers.
- Standard deduction adjusted.
Vermont payroll quirks workers should know
- Vermont W-4VT form for state withholding.
- No local income tax.
Example breakdown
A hypothetical Vermont worker on a $65,000 annual salary, paid bi-weekly, single filer, no extra adjustments. Educational only, your real paycheck differs.
| Gross (bi-weekly) | $2500.00 |
| Federal income tax | -$250.00 |
| Social Security (6.2%) | -$155.00 |
| Medicare (1.45%) | -$36.25 |
| Vermont state tax | -$112.50 |
| Estimated take-home | $1946.25 |
Run your own numbers in the Vermont paycheck calculator.
Authoritative sources
Frequently asked questions
- Does Vermont have state income tax?
- Yes. Vermont uses progressive brackets. Verify with the Vermont Department of Taxes.
- Are there local income taxes in Vermont?
- No. Vermont does not have local income taxes on wages.
- Does Vermont have State Disability Insurance or Paid Family Leave premiums?
- No. Vermont does not have state-mandated SDI or PFL employee premiums.
- Does Vermont have daily-overtime rules?
- No. Vermont follows federal FLSA: 1.5x for hours above 40 in a workweek.
- What is FICA on a Vermont paycheck?
- FICA is federal: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies above $200,000 single or $250,000 married filing jointly. FICA applies in every state.
- Where do I verify Vermont state tax withholding?
- The Vermont Department of Taxes (https://tax.vermont.gov/) is the authoritative source. For your specific paycheck, contact your employer's payroll team or a CPA.
- Does Vermont have paid family leave?
- A voluntary state program for employers who opt in. No mandatory employee deduction across all employers, unlike CT, MA, RI.