Vermont variant. This is a Vermont-specific version of the Income Tax Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Income Tax Calculator.
Vermont income tax (3.35-8.75% across 4 brackets) stacks on top of federal tax. Understanding both layers is essential to estimating your total Vermont tax bill.
Vermont state income tax structure
Vermont taxes income at 3.35-8.75% across 4 brackets, with a top marginal rate of 8.75%. Like the federal system, only income within each bracket is taxed at that bracket's rate.
Federal brackets (10%–37%) apply nationwide. Combine your federal effective rate with the Vermont rate to find your true marginal tax on the next dollar earned.
About taxes and housing in Vermont
Vermont uses a graduated income tax with a top marginal rate near 8.75%.
Vermont has a relatively high effective property tax rate around 1.78%, with median home values near $380,000.
Vermont's economy is rooted in agriculture and dairy, tourism and skiing, and small-scale specialty manufacturing.
Worked example: state tax on $74,014
Using the 8.75% top rate as a ceiling, state income tax on $74,014 is at most about $6,476; the actual figure is lower after brackets and deductions.
Quick reference
- State income tax: 3.35-8.75% across 4 brackets
- State sales tax: 6% (plus 0.36% avg local)
- Median home value: $380,000
- Median household income: $74,014
- Effective property tax rate: 1.78%
- Avg auto insurance: $1,063/yr
Frequently Asked Questions
Does Vermont have state income tax?
Yes - 3.35-8.75% across 4 brackets, topping out at 8.75%.
What is the top tax rate in Vermont?
The top marginal state rate is 8.75%.