Estimate your Vermont state income tax plus combined federal and VT state tax for 2026. 8.75% top rate.
Vermont has progressive income tax from 3.35% to 8.75%, with the top rate on income over $229,550 (single). Vermont taxes Social Security benefits with exemptions for lower-income residents. Vermont offers a renter rebate credit for qualifying lower-income renters. Use the calculator above to estimate your combined federal and Vermont state income tax for 2026. State tax figures use a simplified rate — for precise Vermont state tax calculations, consult the Vermont Department of Revenue or a licensed tax professional.
Vermont has a 8.75% top rate state income tax for 2026. Vermont has progressive income tax from 3.35% to 8.75%, with the top rate on income over $229,550 (single). Vermont taxes Social Security benefits with exemptions for lower-income residents. Vermont offers a renter rebate credit for qualifying lower-income renters. The state income tax is calculated separately from federal income tax and is paid through payroll withholding or quarterly estimated payments.
Vermont has its own state standard deduction separate from the federal standard deduction ($15,750 single, $31,500 MFJ in 2026). For precise Vermont state deduction amounts, consult the Vermont Department of Revenue or a state tax professional.
Vermont's 8.75% top rate state income tax can be compared to other states using our state tax calculator above. The U.S. average top marginal state income tax rate is approximately 5-6%. Nine states have no income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming), while California has the highest at 13.3%.
Vermont offers state tax credits and deductions that may reduce your state tax liability. Common state credits include earned income credits, child tax credits, and credits for the elderly. Consult the Vermont Department of Revenue website or a licensed tax professional for credits specific to your situation and income level.
Use the calculator above. Enter your income and VT is pre-selected as your state. The calculator computes your 2026 federal income tax using the One Big Beautiful Bill Act brackets (10%-37%), adds your estimated Vermont state income tax (8.75% top rate simplified), and displays your total tax burden, combined effective rate, and annual take-home pay. All calculations happen instantly in your browser.