Vermont charges 3.35-8.75% state income tax. Use the employer cost calculator pre-loaded with Vermont rates.
Open Employer Cost Calculator →Employers in Vermont must withhold and remit the graduated state income tax, plus handle their share of FICA, FUTA, and Vermont's state unemployment insurance. The total cost to employ someone at a $75,000 salary in Vermont is typically 10-15% above the gross salary, covering the employer's payroll tax share, SUI, workers' comp, and benefits. This calculator breaks down the full employer cost with Vermont's specific tax rates.
Vermont uses a graduated income tax with brackets ranging from 3.35-8.75%. Lower income is taxed at lower rates, with the 8.75% top rate applying only to income in the highest bracket. This progressive structure means your effective state tax rate is always lower than the top marginal rate. Vermont does not have local income taxes, so the state graduated rate is the total state-level income tax burden.
The table below shows what you actually keep at five salary levels in Vermont, accounting for federal tax, FICA, and Vermont's graduated (3.35-8.75%) state tax.
See how Vermont compares to other Northeast states. Each link takes you to the employer cost calculator landing page for that state.
For a comprehensive breakdown of Vermont’s tax structure, salary comparisons, cost-of-living analysis, and more, visit the full Vermont take-home pay page.