Vermont payroll taxes

State income tax: Progressive Vermont withholding based on your VT withholding certificate and current state tables.
Local income tax: Vermont cities and towns do not levy employee wage-based local income taxes.
Unemployment Insurance (UI/SUI): Employer-paid; employees do not pay Vermont UI from wages.
Other state programs: No statewide employee-paid disability or paid family leave payroll tax at the paycheck level (check employer benefits).
FICA (federal): Social Security and Medicare withholding—see FICA details below.
FIT (federal income tax): Withheld using IRS rules from your federal Form W-4.
Pre-tax deductions: 401(k), HSA/FSA, and Section 125 premiums may reduce FIT/state taxable wages (and sometimes FICA).
Post-tax deductions: Roth 401(k), garnishments, union dues, charitable giving, etc.

How Your Vermont Paycheck Works

Start with gross pay (salary for the period or hourly × hours; include overtime where due).
Subtract pre-tax items (401(k), HSA/FSA, cafeteria plans) to determine taxable wages.
Apply FICA (Social Security to the wage base; Medicare on all wages; Additional Medicare for high earners).
Calculate federal withholding using IRS methods and your W-4 settings.
Calculate Vermont state withholding using your VT elections and state tables.
Employer separately pays UI/SUI; this does not reduce your net pay.
Subtract post-tax deductions to arrive at your net pay.

Vermont Income unemployment tax rate — 10 Years Data

Employees do not pay Vermont Unemployment Insurance from wages. Employers contribute on a taxable wage base at assigned rates. Values below are illustrative; confirm each year’s rate notice and wage base.

Year	Employee UI Rate	Employee Pays?	Employer Taxable Wage Base (approx.)	New Employer Rate (typ.)	Experienced Employer Rate Range (approx.)
2016	0%	No	$16,000	~2.7%	~0.4%–8.5%
2017	0%	No	$16,500	~2.7%	~0.4%–8.7%
2018	0%	No	$17,000	~2.7%	~0.4%–8.9%
2019	0%	No	$17,600	~2.7%	~0.4%–9.1%
2020	0%	No	$18,000	~2.7%	~0.4%–9.3%
2021	0%	No	$18,300	~2.7%	~0.4%–9.5%
2022	0%	No	$19,000	~2.7%	~0.4%–9.7%
2023	0%	No	$20,000	~2.7%	~0.4%–9.9%
2024	0%	No	$21,000	~2.7%	~0.4%–10.1%
2025	0%	No	$22,000	~2.7%	~0.4%–10.3%

Vermont salary threshold

Vermont follows federal FLSA white-collar rules. Exempt status requires meeting the current federal salary threshold and applicable duties tests. If either test is not met, overtime is due after 40 hours in a workweek.

Median Household Income — Vermont (10 years, current dollars)

Illustrative nominal values showing trend; confirm with the latest American Community Survey for official statistics.

Year	Median Household Income
2015	$58,000
2016	$60,000
2017	$62,500
2018	$65,000
2019	$68,200
2020	$70,300
2021	$76,400
2022	$81,900
2023	$85,200
2024	$87,000

Vermont Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the federal annual wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

Vermont has no municipal wage-based income taxes. Paychecks typically show federal withholding, Vermont state income tax, FICA, and any deductions or garnishments. Local governments rely on other revenue sources like property and sales taxes, so moving between Vermont towns generally does not change wage withholding beyond state and federal rules.

Local income tax table (employee wage tax)

City/Town	Local Wage/Income Tax	Notes
Statewide (Vermont)	None	No municipal/county percentage-of-wages tax on employees

Vermont Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Most non-exempt employees earn 1.5× after 40 hours/week (no statewide daily OT rule).
Minimum wage: Vermont sets a statewide minimum generally above the federal floor; verify the effective rate for your pay period.
Pay frequency: Employers must set regular paydays (weekly/biweekly/semimonthly are common) and pay on time; final-pay deadlines apply at separation.
Breaks/meals: Follow federal/state standards; minors and certain sectors may have extra protections.

Additional Vermont forms

Vermont Employee Withholding Certificate — sets state withholding elections.
Federal Form W-4 — controls federal withholding.
UI Employer Registration & Rate Notice — Vermont Department of Labor account setup and SUI rate assignment.
New Hire Reporting — report hires/rehires within the required timeframe.
Required workplace posters — wage/hour, unemployment, safety, and federal postings.

FAQs — Vermont Salary Paycheck Calculator

How do I use a Vermont Salary Paycheck Calculator to estimate net pay?

Enter gross pay and frequency, your federal W-4 and Vermont withholding details, plus pre-/post-tax deductions. The calculator applies FICA, federal withholding, and Vermont state withholding to estimate per-pay and annual take-home.

Does any Vermont town take a local income tax from wages?

No. Vermont does not levy municipal wage-based taxes. Your stub generally lists federal withholding, Vermont state tax, and FICA, plus deductions.

Do Vermont employees pay unemployment insurance from wages?

No. Vermont UI is employer-funded. Employees will not see a Vermont UI deduction on their pay stubs.

Which form controls my Vermont state withholding?

Your Vermont Employee Withholding Certificate controls state withholding. Update it after life events, multiple jobs, or major changes in income.

What salary makes me exempt from overtime in Vermont?

Vermont follows federal FLSA standards. Exempt status requires meeting the current federal salary threshold and duties tests; otherwise overtime is due after 40 hours/week.

How are bonuses and commissions taxed in Vermont payroll?

They’re subject to federal supplemental methods, FICA, and Vermont state withholding. Enter bonuses as supplemental pay to apply the correct methods.

Can I add an extra Vermont withholding amount per paycheck?

Yes. Request a flat extra state amount on your Vermont certificate and mirror that in the calculator to preview impact on take-home.

How do pre-tax benefits (401(k), HSA, FSA) affect Vermont and federal taxes?

Pre-tax benefits reduce federal and Vermont taxable wages and may reduce FICA depending on the plan type—usually increasing take-home pay.

Are Roth 401(k) contributions pre-tax?

No. They are post-tax and do not reduce taxable wages today. Enter them as post-tax deductions.

Why did my net change mid-year without a raise?

You may have reached the Social Security wage base, stopping Social Security withholding for the rest of the year while Medicare continues.

How are tips treated for Vermont payroll?

Reported tips are taxable for FIT, FICA, and Vermont withholding. Include tips in estimates to avoid under-withholding.

Does Additional Medicare tax apply in Vermont?

Yes—this is federal. Employees pay an extra 0.9% above $200,000 of wages; employers do not match it.

Can student employees be exempt from FICA?

Some student workers at qualifying institutions may be FICA-exempt while enrolled at least half-time. If exempt, remove FICA lines for that job in your estimate.

How do I reflect year-to-date (YTD) wages and taxes in the calculator?

Enter YTD wages and taxes so the calculator tracks the Social Security cap and aligns federal and Vermont withholding with cumulative earnings.

How are PTO payouts taxed?

PTO cash-outs are taxable wages subject to FIT, FICA, and Vermont state income tax. If paid separately, employers may use supplemental methods.

What if I live in New Hampshire or New York but work in Vermont?

Withholding generally follows the work state. Vermont withholding applies to VT-sourced wages; your resident state may grant credits for tax paid to Vermont.

Can I claim exempt from Vermont withholding?

Only if you meet Vermont criteria (e.g., no state liability last year and none expected this year). Otherwise use standard elections or add a specific extra amount.

What pay frequency should I select?

Use your employer’s schedule (weekly, biweekly, semimonthly, monthly). The tool prorates wages per period and tracks annual caps like Social Security.

How do garnishments affect my paycheck?

Enter court-ordered amounts as post-tax deductions. The calculator subtracts them after taxes. Federal and state limits and timelines apply.

Can I compare traditional vs. Roth 401(k) effects on take-home?

Yes—run traditional (pre-tax) and Roth (post-tax) scenarios to see near-term net pay differences and long-term tax implications.

How do I model a mid-year raise or promotion?

Run two scenarios—old rate for already-paid checks and new rate for remaining periods—then combine to project full-year taxes and net pay.

Vermont Salary Paycheck Calculator