Vermont Income Tax Brackets 2026

Vermont uses a progressive income tax system with 4 brackets.

State Tax

8.8%

Top marginal rate

COL Index

114

Above national avg

Median Income

$74,014

Household

Brackets

4

Progressive

Vermont Tax Brackets

Income RangeMarginal Rate
$0$45,4003.35%
$45,400$110,0506.60%
$110,050$229,5507.60%
$229,550and above8.75%

Vermont State Tax at Different Income Levels

Gross IncomeState TaxEffective Rate
$50,000$1,8253.65%
$75,000$3,4754.63%
$100,000$5,1255.13%
$150,000$8,8245.88%
$200,000$12,6246.31%
$300,000$21,0347.01%

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Frequently Asked Questions about Vermont Taxes

Does Vermont have state income tax?

Vermont has a progressive income tax system with rates ranging from 3.4% to 8.8% for 2026.

How much is federal tax in Vermont?

Federal income tax in Vermont is the same as in all other US states. For 2026, the federal brackets range from 10% to 37%, depending on your taxable income and filing status.

What is the cost of living in Vermont?

The cost of living in Vermont has an index of 114, where 100 is the national average. This means Vermont is 14% more expensive than the average US state.