Vermont uses graduated (progressive) state income tax brackets in 2026, so the rate rises with income much like the federal system. This calculator applies an estimated effective rate of about 6.0% for a middle income — on a $75,000 salary a single filer pays roughly $4,500 in state tax and nets about $57,093 a year (76.1% of gross). Your exact rate depends on where your income lands across the brackets.

Because Vermont is a graduated-rate state, your top marginal rate is higher than your effective rate — you only pay the top rate on income above each threshold, not on your whole salary. Use the interactive calculator below and adjust the state-rate field to match your income for a precise figure. The 6.0% estimate here is above the 4.8% average across taxing states.

Remember that FICA is separate from income tax and is not affected by your state. Every worker pays 6.2% for Social Security on the first $184,500 of wages (the 2026 wage base) plus 1.45% for Medicare on all wages. Pre-tax 401(k) and HSA contributions lower your federal and state income tax but do not reduce FICA — a detail that trips up a lot of first-time budgeters.

Vermont's graduated schedule reaches a high top rate, and the state is among the minority that still taxes some Social Security benefits (with exemptions for lower incomes). Housing scarcity, not just taxes, defines Vermont affordability — the state has among the oldest housing stock and lowest vacancy rates in the country. Vermont also launched a state child tax credit that materially helps families with young children.