Vermont Salary Calculator

Vermont Income Tax Overview (2026)

Vermont has a graduated income tax from 3.35% to 8.75%. The 6.6% rate applies to income between $45,401 and $93,400 for single filers in 2026.

In addition to state tax, all Vermont workers pay federal income tax (10%–37% marginal rates) and FICA — Social Security (6.2%) and Medicare (1.45%), totaling 7.65% of gross wages. Voluntary deductions like 401(k) contributions or health insurance premiums further reduce taxable income.

Cost of Living in Vermont

Vermont has high housing costs relative to its income levels. Burlington median home prices are around $440,000. Vermont attracts remote workers seeking quality of life, which has pushed prices higher in recent years.

When evaluating a job offer in Vermont, consider not just the salary but total compensation — employer benefits, retirement match, and location-specific costs. A $70,000 salary in a low cost-of-living Vermont city may be more livable than $85,000 in a high-cost metro.

Top Industries and Employers in Vermont

Vermont's economy is anchored by healthcare, education (University of Vermont), tourism, agriculture (dairy, maple syrup), technology (remote workers). The state median household income is approximately $64,000 per year, though this varies significantly by region and occupation.

Vermont's minimum wage of $14.01/hour sits above the federal floor, giving entry-level workers a higher starting point than in federal-minimum states, and the state's $64,000 median household income sits close to the national average, with healthcare as the largest single influence on local pay scales.

How Vermont Compares to Other States

Vermont's 6.6% top rate means a worker earning $75,000 pays approximately $4,950 in state income tax annually. Compared to zero-tax states, this reduces take-home by $4,950/year — a meaningful difference that compounds significantly over a career.

For workers evaluating a potential relocation, state income tax is just one factor. Property taxes, sales taxes, cost of living, job market depth, and quality of public services all contribute to the complete financial picture. Use our Salary Calculator to compare take-home pay across all 50 states side by side.

How to Calculate Your Vermont Take-Home Pay

Your net pay is your gross salary minus: (1) federal income tax based on your bracket and filing status, (2) FICA at 7.65% of gross wages, (3) Vermont state income tax at 6.6%, and (4) any voluntary deductions such as 401(k), HSA, or health insurance premiums. The calculator above handles steps 1–3 automatically.

Tax-Advantaged Strategies for Vermont Workers

Regardless of your state tax rate, contributing to pre-tax retirement accounts like a 401(k) or traditional IRA reduces your federal taxable income dollar for dollar. In 2026, you can contribute up to $24,500 to a 401(k) and $7,500 to an IRA. For someone earning $60,000 in Vermont, maxing the 401(k) reduces federal taxable income by $24,500 — saving approximately $2,940 in federal tax (at 12% marginal rate) plus approximately $1,617 in Vermont state tax.