How Vermont taxes a paycheck
Vermont has four brackets: for 2026 a single filer pays 3.35% on the first $49,400 of taxable income, 6.6% to $119,700, 7.6% to $249,700 and 8.75% above. Married thresholds are $82,500, $199,450 and $304,000, wider than single but not doubled, so joint filers reach the higher rates sooner than in most states. The brackets, the $7,650 single and $15,300 married standard deduction and the $5,300 personal and dependent exemption are indexed each year.
Vermont's low 3.35% entry rate covers most of an ordinary salary, which is why its bill on $60,000 is modest; the 6.6% and 7.6% brackets are what make it expensive at higher incomes. Vermont also exempts Social Security for lower and middle incomes and offers a child tax credit of $1,000 per child under six on the return. There are no local income taxes.
How much taxes are taken out of paychecks in Vermont?
On a $60,000 salary in 2026, a single filer in Vermont pays about $5,020 in federal income tax, $4,590 in Social Security and Medicare, and about $1,580 in Vermont income tax, leaving roughly $48,810 a year or $1,877 every two weeks. The state share is 2.6% of gross.
At $150,000 the tax is about $7,610, an effective rate of 5.1%, since income above $49,400 of taxable is at 6.6% and above $119,700 at 7.6%. A married couple on $100,000 pays about $2,480.
Vermont compared with its neighbours
Vermont borders New Hampshire, which taxes no wages, and New York and Massachusetts. On a $60,000 single salary the state tax is about $1,580 in Vermont, $2,640 in New York and $2,780 in Massachusetts. Vermont is the cheapest of the three at that salary and stays below Massachusetts until about $110,000.
The Connecticut River line with New Hampshire is where the difference is starkest: a $60,000 earner in Brattleboro or White River Junction pays about $1,580 that a resident across the bridge does not, and at $150,000 the gap is about $7,610.
Withholding forms and filing status in Vermont
Vermont employers withhold from Form W-4VT, which asks for filing status and allowances; the tables apply the four brackets after the standard deduction and exemptions. Married couples get wider brackets ($82,500 rather than $49,400 for the 6.6% rate, not doubled) and a $15,300 deduction, so a one-earner couple on $60,000 pays about $1,050 against a single filer's $1,580, while a two-earner couple above about $100,000 faces a modest marriage penalty from the narrower joint brackets.
Vermont has no reciprocal agreements. New Hampshire residents working in Vermont pay Vermont tax on those wages; Vermont residents working in New Hampshire owe Vermont tax with no credit. Vermont's brackets are indexed to the federal chained CPI each year.