State income tax · Vermont
Vermont income tax rates
Vermont's income tax on wages: the rate structure, the brackets and the source for each figure.
Data: Tax year 2026 (where a state has not published 2026 brackets yet, its latest published year, labelled on the row) Sources read Review by
CheckedOct 19, 2026These are the figures for tax year 2026.
- Structure
- Graduated brackets
- Top rate
- 8.75%
- Lowest rate
- 3.35%
- Brackets (single)
- 4
- Local income taxes
- None noted
Brackets
Each rate applies only to the part of taxable income above its threshold and up to the next one; that is what a graduated schedule means. Taxable income is the state's own measure, after its deductions and exemptions.
| Taxable income over | Rate on income above that amount |
|---|---|
| $0 | 3.35% |
| $50,750 | 6.6% |
| $122,850 | 7.6% |
| $256,300 | 8.75% |
| Taxable income over | Rate on income above that amount |
|---|---|
| $0 | 3.35% |
| $84,700 | 6.6% |
| $204,750 | 7.6% |
| $312,050 | 8.75% |
Notes
Rates are fixed in 32 V.S.A. 5822 and the bracket amounts are indexed for inflation each year by the Commissioner; the 2026 amounts come from the Department's 2026 Form IN-114 instructions, which label them preliminary. If federal AGI exceeds $150,000, the tax is the greater of the table tax or 3% of federal AGI (a minimum tax, not a surtax).
Sources
We read each source on the date shown and quote the line we relied on.
- 32 V.S.A. 5822 (Tax on income of individuals, trusts, and estates) (external site)
If the federal adjusted gross income of the taxpayer exceeds $150,000.00, then the tax calculated under this subsection shall be the greater of the tax calculated under subdivisions (1)-(5) of this subsection or three percent of the taxpayer’s federal adjusted gross income.
- 32 V.S.A. 5822 (inflation indexing of bracket amounts) (external site)
shall be adjusted annually for inflation by the Commissioner of Taxes
- 2026 Form IN-114 Instructions (Rev. 10/25), 2026 Preliminary Vermont Tax Rates, Schedules X and Y-1 (external site)
256,300 - 16,601.00 8.75% 256,300
- 2026 Form IN-114 Instructions, Schedule Y-1 top bracket (external site)
312,050 - 18,916.00 8.75% 312,050
- GB-1210 (2026) Income Tax Withholding Instructions, Tables, and Charts (external site)
EFFECTIVE JANUARY 1, 2026 - EXPIRES DECEMBER 31, 2026