Vermont has a four-bracket income tax topping out at 8.75% — one of the higher top rates in the country — but a standard deduction and personal exemption shelter the first slice of income. This calculator itemizes your federal withholding and the Vermont tax for 2026 and shows the math.
Low entry rate, high ceiling
Vermont starts at a modest 3.35% and climbs through 6.6% and 7.6% to a top rate of 8.75% on high incomes. Because a standard deduction ($7,650 single) and a personal exemption ($5,300) come off first, a middle-income earner mostly stays in the lower bands. The steep top rate is reserved for six-figure incomes.
Limits
Covers federal income tax, FICA, and the Vermont brackets using 2026 figures. It excludes credits, retirement-benefit taxation, and W-4 fine-tuning. Check your refund with the tax refund calculator; the flexible paycheck calculator handles any state.