Vermont Income Tax Calculator 2026 — 3.35% to 8.75% Brackets

Calculate your 2026 Vermont state income tax with 4 brackets (3.35%–8.75%), federal standard deduction, $4,850 personal exemption, Renter Rebate, and VT vs NH, NY, MA comparison.

$
= $6,250 / month
$4,850 personal exemption each
$
For Renter Rebate eligibility check
Enter annual rent to check rebate eligibility
Common salaries:
$0
VT State Income Tax
$0
Personal Exemption Used
$0
Estimated Renter Rebate
$0
Federal Income Tax
0%
VT Effective Rate
$0
After All Taxes Income

Vermont Tax Bracket Breakdown

Income RangeTaxable in BracketRateTax

Full Tax Computation Summary

How to Use This Vermont Income Tax Calculator

Enter your annual gross income, select your filing status, and optionally enter dependents (for personal exemption) and annual rent (for Renter Rebate check). The calculator applies Vermont's 2026 four-bracket rate structure with federal-conforming standard deduction and personal exemption.

The Formula

VT Standard Deduction = $16,100 (single) or $32,200 (MFJ) — matches federal
Personal Exemption = $4,850 per taxpayer + $4,850 per dependent
VT Taxable Income = Gross Income − Std Deduction − Personal Exemptions
VT Tax = 3.35% on first $45,400 + 6.6% on $45,400–$110,050 + 7.6% on $110,050–$229,550 + 8.75% above

Example: Single filer, $120,000 income

Michael, Single, $120,000 income in Vermont 2026:
Std deduction: $16,100 | Personal exemption: $4,850
VT taxable: $120,000 − $16,100 − $4,850 = $99,050
VT tax: $45,400 × 3.35% + $53,650 × 6.6% = $1,521 + $3,541 = $5,062
VT effective rate: 4.22%

Vermont's Renter Rebate Program

Vermont's Renter Rebate provides up to $4,000 to qualifying renters. To qualify, you must be a Vermont resident for the full year and have household income below the program threshold (typically around $47,000 for a single person). The rebate equals the amount by which your rent payments exceeded a set percentage of your income, providing significant relief to lower-income renters in Vermont's expensive housing market.

Extended

VT vs Neighboring States Comparison

Side-by-side Vermont, New Hampshire, New York, and Massachusetts income tax comparison

State income tax at your current income. Single filer, standard deduction, no dependents.

StateTax StructureState TaxEffective RateAfter-State Income

Vermont state tax at common income levels for the selected filing status.

IncomeVT TaxableVT TaxEffective RateMonthly After VT Tax

Frequently Asked Questions

What are the Vermont income tax brackets for 2026?
Vermont has four income tax brackets for single filers in 2026: 3.35% on $0–$45,400, 6.6% on $45,400–$110,050, 7.6% on $110,050–$229,550, and 8.75% on all income above $229,550. Married filing jointly brackets are roughly double these thresholds.
What is the Vermont standard deduction and personal exemption?
Vermont conforms to the federal standard deduction amounts: $16,100 for single filers and $32,200 for married filing jointly in 2026. Vermont also provides a personal exemption of $4,850 per taxpayer (and per dependent), which is a separate deduction from taxable income on top of the standard deduction.
What is the Vermont Renter Rebate?
Vermont's Renter Rebate is a refundable credit for low- to moderate-income renters. Qualifying renters can receive up to $4,000, calculated as the amount by which rent paid exceeds a certain percentage of household income. The credit is available to renters whose income falls below specified thresholds and who pay rent on their primary residence.
Does Vermont have a capital gains preference?
Vermont previously had a capital gains exclusion, but it was eliminated. Vermont now taxes capital gains as ordinary income at the same rates (3.35%–8.75%). This makes Vermont relatively unfavorable for investors and retirees with significant capital gains compared to states that offer preferential capital gains rates or exclusions.
How does Vermont compare to neighboring states for income tax?
Vermont's 8.75% top rate is among the highest in New England. New Hampshire has no tax on wages (only a 3% tax on interest/dividends being phased out). New York's top state rate is 10.9% but applies only at very high incomes. Massachusetts charges 5% flat (plus 4% surtax over $1M). Vermont is generally the highest-burden income tax state among its neighbors for middle and upper-middle incomes.

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