Vermont Paycheck Calculator

Vermont Income Tax Rate

Vermont uses progressive state brackets with a relatively high top marginal rate by national standards. Payroll starts from your gross pay, subtracts any pre-tax benefits—traditional 401(k), Section 125 health premiums, HSA/FSA, commuter plans—then applies federal withholding, FICA, and Vermont state withholding based on your VT W-4 and pay frequency. Supplemental wages (bonuses/commissions) can be withheld using percentage or aggregate methods. Because most Vermont municipalities do not levy separate wage income taxes, your principal income-tax layers are federal plus state. The table shows the statewide top marginal rate over the last decade to illustrate policy stability and modest recent reductions; most workers’ effective rates are lower.

Vermont Median Household Income

Vermont’s median household income has climbed across the decade, supported by healthcare, education, manufacturing, tourism, professional services, and remote-work inflows. Pandemic disruptions briefly slowed growth, then medians resumed rising as labor markets tightened and employers competed for talent. Use the nominal values below as directional benchmarks for budgeting or offer comparisons. For purchasing-power analysis, compare “real” (inflation-adjusted) dollars and weigh local costs—housing, transportation, childcare, and healthcare—which differ across Chittenden County, central Vermont, and rural towns. Household size and employer benefits meaningfully shape take-home value, so pair statewide figures with current county or metro estimates before deciding.

Vermont Federal Insurance Contributions Act (FICA)

FICA funds Social Security and Medicare and applies uniformly in Vermont. Employees pay 6.2% Social Security on wages up to the annual federal wage base (employers match) and 1.45% Medicare on all wages (also matched). High earners owe an additional 0.9% Medicare surtax above federal thresholds; employers do not match the surtax. Section 125 health premiums typically reduce both income-tax and FICA wages, while traditional 401(k) reduces income-tax wages but not FICA. Vermont pay stubs usually show separate lines for Social Security, Medicare, federal tax, Vermont income tax, pre-tax deductions, post-tax deductions, and year-to-date totals for easy verification each pay period.

Vermont Number of Cities with Local Income Taxes

Vermont municipalities do not levy wage income taxes on paychecks. Payroll withholding generally includes federal income tax, FICA, and Vermont state income tax only.

How Your Vermont Paycheck Works

Each pay period starts with gross wages. Payroll subtracts pre-tax benefits—traditional 401(k), HSA/FSA, Section 125 health premiums, and eligible commuter benefits—to determine taxable wages. Withholding then includes federal income tax (W-4), Social Security and Medicare (FICA), and Vermont state income tax using your VT W-4 elections and pay frequency. Post-tax deductions—Roth 401(k), garnishments, union dues, charitable gifts—occur after taxes and do not reduce taxable wages. Pay schedule (weekly, biweekly, semimonthly, monthly) affects per-check cash flow but not annual tax. Review stubs after life events, address moves, or benefit changes to keep withholding aligned with your situation.

Vermont Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Vermont follows FLSA—most non-exempt employees earn 1.5× their regular rate for hours worked over 40 in a workweek; exemptions apply when duties and salary thresholds are met.
Pay frequency: Employers must set regular paydays and pay on consistent intervals; biweekly or weekly schedules are common. State rules also address timely final pay and itemized wage statements—review employer policy or agreements for specifics.

FAQs

How do I use the Vermont Paycheck Calculator?

Enter gross pay, pay schedule, W-4/VT W-4 details, pre-tax benefits, and post-tax deductions to estimate federal, FICA, and Vermont withholding.

What is Vermont’s top income tax rate?

The top marginal rate has been around 8.75% in recent years; your effective rate depends on income, filing status, and credits.

Do any Vermont cities have a wage income tax?

No. Municipalities do not levy percent-of-wages income taxes on paychecks.

How do pre-tax 401(k) and HSA contributions affect my paycheck?

They reduce taxable wages for income tax, increasing take-home. 401(k) doesn’t reduce FICA; many health premiums do.

Are bonuses taxed differently in Vermont?

State withholding follows Vermont tables; federally, employers may use percentage or aggregate methods for supplemental wages.

Why did my Vermont withholding change this year?

Form updates, benefit elections, raises, marital status, or supplemental pay can shift per-check results even at the same salary.

What appears on a Vermont pay stub?

Typically Social Security, Medicare, federal tax, Vermont tax, pre-tax deductions, post-tax deductions, YTD totals, and net pay.

What is Vermont’s minimum wage policy?

Vermont sets a statewide minimum wage by statute; employers must pay at least the current effective rate.

How often must I be paid in Vermont?

Employers maintain a regular payday and consistent intervals—often weekly or biweekly—subject to wage-payment timing rules.

Do remote workers owe Vermont income tax?

Residents owe tax on all income; nonresidents owe tax on VT-sourced wages. Credits may apply for taxes paid to other states.