VERMONT PAYCHECK CALCULATOR
Quick answer: on a $70,000 salary in Vermont, filing Single, you take home roughly $55,290 a year, which works out to about $2,126 every two weeks on a biweekly schedule.
Vermont’s top rate hits at a lower income than in most progressive-tax states, and its withholding system works a little differently from most states too. Scroll down to plug in your own numbers.
Vermont runs a four-bracket progressive income tax, 3.35%, 6.6%, 7.6%, and 8.75%, and that top rate arrives faster than it does in many other states with similarly steep top brackets: a single filer hits 8.75% once taxable income passes $229,550, well below the threshold in states like California or New York. Vermont’s withholding calculation also works differently from what most people expect. Rather than a standard deduction plus a separate personal exemption the way the federal system works, Vermont’s official 2026 withholding tables, released by the Vermont Department of Taxes, subtract a single flat exemption allowance, $5,400 for 2026, up from $5,300 the year before, for the employee, a spouse on a joint return, and each dependent claimed. Vermont’s overall tax burden runs high by New England standards too, driven substantially by property tax, which averages roughly 1.74% effective, the third highest rate in the country.
What lands on a Vermont paystub follows that structure. Federal income tax, Social Security, and Medicare come out first, the same as anywhere else. Vermont state tax follows, using the bracket table below on wages after subtracting the exemption allowance. There is no local city or town income tax anywhere in Vermont, and no state disability insurance or paid family leave deduction taken directly from wages. If you are comparing Vermont against a New England neighbor, see the New Hampshire paycheck calculator for a state with no income tax at all, or the Maine paycheck calculator for a similarly structured bracket system just across the state line.
Vermont Paycheck Calculator
How the Federal Number Was Worked Out
Take the default example above, a single filer earning $70,000 a year with no other adjustments. Here is exactly how the federal piece gets built, step by step, using the 2026 IRS brackets and the $16,100 single standard deduction, a concept Vermont’s own withholding system does not use in the same way.
Step 1. $70,000 gross minus the $16,100 standard deduction leaves $53,900 in federal taxable income.
Step 2. The first $12,400 is taxed at 10%, which comes to $1,240.
Step 3. The next chunk, from $12,400 to $50,400, is taxed at 12%. That is $38,000 taxed at 12%, or $4,560.
Step 4. The remaining $3,500, from $50,400 up to the $53,900 taxable income figure, is taxed at 22%, adding $770.
Step 5. Add it up: $1,240 + $4,560 + $770 = $6,570 in federal income tax, an effective federal rate of about 9.4% on the full $70,000.
On the Vermont side, the same $70,000 loses a single $5,400 exemption allowance for the filer, leaving $64,600 in Vermont taxable income before the four brackets apply, a different and simpler subtraction than the federal calculation above.
Vermont vs Its New England Neighbors at $70,000 (Single Filer)
These numbers assume a single filer using each state’s own deduction or exemption system, with no local or city-level tax added.
| State | State Income Tax | Effective State Rate | Est. Net Pay* |
|---|---|---|---|
| Vermont | $2,788 | 3.98% | $55,287 |
| Maine | $3,074 | 4.39% | $55,001 |
| New Hampshire | $0 | 0% | $58,075 |
*Net pay estimate includes federal tax and FICA at $70,000 gross, single filer, before any local or city-level tax.
Vermont’s smaller exemption allowance compared to Maine’s standard deduction and personal exemption combined keeps Vermont’s tax bill close to Maine’s at this income level, despite Vermont’s lower entry-level 3.35% bracket rate. That gap can shift at other income levels, particularly for higher earners, since Vermont’s top bracket starts at a considerably lower dollar threshold than Maine’s, meaning a higher earner in Vermont reaches the top rate sooner. New Hampshire, with no income tax at all, remains the clear outlier of the three regardless of income level, though New Hampshire’s property taxes run even higher than Vermont’s to help make up the difference.
Where Your Paycheck Money Actually Goes
Picture that same $70,000 salary landing as a biweekly paycheck of $2,692.31 before anything is taken out. Here is the order things get pulled, and what is left standing at the end.
Federal income tax comes off first, working out to roughly $252.69 per biweekly check based on the annual $6,570 figure above.
Social Security takes 6.2% of every check up until your year-to-date wages hit the 2026 wage base of $184,500. On $2,692.31, that is $166.92 gone.
Medicare takes 1.45% with no cap at all, which is $39.04 on this check. The extra 0.9% Medicare surtax only kicks in once your total wages for the year pass $200,000 for a single filer, so it does not apply here.
Vermont state tax, based on the roughly $2,788 annual figure, works out to about $107.23 per biweekly check.
There is no state disability, paid family leave, or local city tax on a standard Vermont paystub. Add those four deductions together and about $565.88 disappears from the $2,692.31 gross, leaving a net paycheck of roughly $2,126.43 every two weeks, or $55,287.18 across the full year.
Vermont’s 2026 Bracket Structure
Vermont’s brackets are indexed for inflation and shift slightly most years. For single filers, the 2026 thresholds are as follows.
| Rate | Taxable Income (Single) |
|---|---|
| 3.35% | $0 to $45,400 |
| 6.6% | $45,400 to $110,050 |
| 7.6% | $110,050 to $229,550 |
| 8.75% | Above $229,550 |
Married couples filing jointly use thresholds set at roughly double the single amounts, and get two exemption allowances instead of one, $10,800 total for 2026 before dependents. A married couple earning $275,000 combined, for example, only pays the 8.75% top rate on about $15,500 of that income, not the entire amount, since Vermont’s brackets apply marginally like every other progressive state’s do. Each dependent adds another $5,400 exemption allowance on top of the base amount for the filer and spouse.
How Vermont’s Tax Burden Stacks Up
| Tax Type | Vermont | National Picture |
|---|---|---|
| Income tax | Four brackets, 3.35% to 8.75%, indexed to inflation | Nine states charge no income tax at all; several charge over 9% |
| Sales tax | 6% state, plus local option taxes in some towns | National average combined rate runs close to 7.5%, so Vermont typically runs below it |
| Property tax | Roughly 1.74% effective rate, the 3rd highest in the country | National average sits close to 0.9% to 1.1% |
| Estate tax | Repealed for deaths in 2022 and later | Most states have no estate tax at all |
Property tax is the clearest driver of Vermont’s overall tax burden, and much of it flows through a state-administered education funding system that varies significantly by town. Vermont offers a property tax adjustment, sometimes called a property tax credit, tied to household income, which can meaningfully reduce the effective bill for lower and middle-income homeowners, though the calculation is genuinely complex and depends on both household income and the specific town’s education tax rate. On the estate side, Vermont repealed its state estate tax for deaths occurring in 2022 and later, a meaningful recent change that removed one layer of tax planning complexity for Vermont families.
Retirees in Vermont
Vermont’s treatment of Social Security depends on income, unlike states that exempt it outright. Residents with federal adjusted gross income below roughly $50,000 for a single filer, or $65,000 for a married couple, can fully exempt their Social Security benefits from Vermont tax. Between those thresholds and a higher cutoff, a partial exemption applies, phasing down gradually. Above the higher thresholds, Vermont generally follows the federal approach to taxing Social Security, meaning up to 85% of benefits can become taxable, the same as it would be on a federal return. This makes Vermont one of roughly a dozen states that still taxes Social Security in some form, a real planning consideration for anyone retiring there with income from multiple sources. On the estate side, Vermont’s 2022 repeal of its state estate tax is a genuine, permanent improvement for retirees doing legacy planning, removing a layer of state-level tax that used to apply on top of the federal estate tax.
Frequently Asked Questions
How much state tax does Vermont take out of my paycheck?
Vermont uses four brackets for 2026: 3.35% on the first $45,400 of taxable income for a single filer, 6.6% up to $110,050, 7.6% up to $229,550, and 8.75% above that. Vermont’s top rate kicks in at a relatively modest income level compared to many other progressive-tax states.
Does Vermont use the federal standard deduction?
No. Vermont’s withholding system does not use a separate standard deduction the way federal withholding does. Instead, it subtracts a flat exemption allowance, $5,400 per allowance for 2026, up from $5,300 in 2025, for the employee, a spouse on a joint return, and each dependent, directly from gross wages to determine taxable income.
Does Vermont tax Social Security benefits?
Yes, for higher-income residents, which makes Vermont one of roughly a dozen states that still taxes Social Security in some form. Residents with federal AGI below approximately $50,000 (single) or $65,000 (married) can fully exempt their Social Security benefits, with a partial exemption in a middle income band and full federal-style taxation above that.
Does Vermont have an estate tax?
No. Vermont repealed its state estate tax effective for deaths occurring in 2022 and later. Only the federal estate tax, which applies to a small share of estates above a multimillion-dollar exemption, can now affect a Vermont resident’s estate.
Is Vermont a good state for taxes overall?
Vermont’s overall tax burden is among the highest in New England. Its property taxes average roughly 1.74% effective, the third highest in the country, and its top income tax rate of 8.75% applies at a lower income threshold than in many other progressive-tax states.
Does Vermont have a local city income tax?
No. There is no local city or town income tax anywhere in Vermont. The only income tax on a Vermont paycheck is the state’s own four-bracket system, on top of federal tax and FICA.
Vermont’s tax code asks more of higher earners relatively quickly, with a top bracket that arrives sooner than its 8.75% rate might suggest at first glance, and it leans on property tax more heavily than most of its neighbors to fund local schools. Its withholding math is genuinely simpler than it first appears once you know it runs on a single exemption allowance rather than the two-part deduction system federal returns use. For most working households at a typical income, Vermont’s bracket structure is not dramatically out of line with Maine’s just across the border, even if the two states get there through different paths.