Does Vermont have a state income tax?

Yes. Vermont has a state income tax with a top rate of 8.8%.

How much is Vermont state tax on a $100,000 salary?

On a $100,000 salary in Vermont, state income tax is approximately $4,490. Your estimated total take-home pay is $74,690/year.

What other taxes does Vermont have?

Vermont has a 6% state sales tax with local add-ons bringing combined rates to 6-7% (Burlington 7%). Property tax averages 1.90% effective — among the highest in the country (substitution for state revenue diversification). Vermont has an estate tax — 16% top above $5M (lower threshold than federal). Vermont has reciprocal agreements with NH, MA, NY (similar to PA). Senior tax credit available for retirees age 62+. Vermont Earned Income Tax Credit at 38% of federal EITC (most generous in nation).

How does Vermont compare to other states for taxes?

Vermont's top rate of 8.8% compares unfavorably — above the national median for state income taxes.

What is Vermont's income tax rate?

Vermont has 4 progressive brackets: 3.35% / 6.6% / 7.6% / 8.75% top above $229,450 (single). Most professional incomes are in the 6.6% bracket (above $45K) or 7.6% bracket (above $110K). At $100K single, your last dollar is in 6.6% bracket; at $200K still 7.6%. Vermont's top rate (8.75%) is meaningfully lower than NY's 10.9% but higher than MA's 5%.

Why is Vermont property tax so high?

Vermont funds public services partially through property tax — VT effective property tax averages 1.90%, among the highest in the country. A $300K Burlington home costs ~$5,700/year property tax. Vermont's homestead declaration program reduces property tax for primary residences (vs second-home + investment property). Income-sensitive property tax adjustment available for households under specific income thresholds — meaningful for moderate-income Vermont residents.

How does Vermont compare to neighboring NH?

NH has 0% wage tax + 0% sales tax vs VT's progressive 8.75% top + 6% sales tax. For working professionals, NH is dramatically more favorable on income tax. VT property tax (1.90%) is similar to NH (1.93%). The major differences: VT has stronger progressive social services (universal healthcare access, robust education funding) funded by the higher tax rates; NH has the libertarian 'Live Free or Die' lower-tax structure. NH-VT border professionals (especially Burlington-area workers commuting from NH) often capture meaningful tax savings via NH residence (NH-VT reciprocity allows NH residents working in VT to file NH tax only — meaning 0% income tax).

What about Burlington tech and ski resort markets?

Burlington (Chittenden County) hosts the largest VT employer cluster: University of Vermont Medical Center (~9,000 employees), University of Vermont, Champlain College, Burton Snowboards, plus growing tech presence (BETA Technologies, Dealer.com, Logic Supply). Ski resort markets (Stowe, Killington, Sugarbush, Mount Snow) host substantial seasonal + year-round tourism economy. Both Burlington tech + ski resort retirement attract migrants from Boston and NYC seeking lifestyle premium. The 8.75% top tax is the structural offset against the lifestyle appeal.

State Tax Guide

Vermont State Income Tax Guide (2026)

Vermont has 4 progressive income tax brackets topping at 8.75% above $217,800 (single) — combined with Burlington tech growth + ski resort retirement appeal + reciprocity-free border with NH/MA/NY.

Top State Rate

8.8%

$100k Take-Home

$74,690

/year (single)

State Tax on $100k

$4,490

single filer

Vermont Income Tax Brackets (2026)

Marginal Rate	Taxable Income (Single Filer)
3.35%	$0→$45,000
6.6%	$45,000→$110,050
7.6%	$110,050→$229,450
8.75%	$229,450→All income above $229,450

Each rate applies only to income within that bracket. Your effective rate is the average across all brackets — meaningfully lower than your top marginal rate.

Standard deduction: $7,200 single / $14,400 married filing jointly

Brackets reflect the most recently published schedules. Some states inflation-index thresholds annually — specific 2026 amounts may shift slightly. Verify with your state's Department of Revenue before filing.

$100,000 Salary in Vermont — Full Tax Breakdown

Category	Annual	Monthly
Gross Salary	$100,000	$8,333
Federal Tax	−$13,170	−$1,098
FICA (SS + Medicare)	−$0.00	−$0.00
Vermont State Tax	−$4,490	−$374
Take-Home Pay	$74,690	$6,224

Assumes single filing status, standard deduction, no 401(k) or HSA contributions. 2026 tax year.

Run your numbers through the right calculator

Salaried, freelance, bonus, overtime, or tips — pick the tool that matches your event.

Salary Calculator

Annual gross to take-home: federal + state + FICA + 401(k)/HSA modeling for all 50 states.

Calculate take-home

Overtime Calculator

Apply the 2025 OBBBA 'No Tax on Overtime' deduction (up to $12,500) and see real savings.

Calculate OT take-home

1099 Tax Calculator

1099, sole prop, or LLC: self-employment tax (15.3%) plus quarterly estimates.

Calculate SE tax

Bonus Calculator

Year-end, sign-on, retention, or commission. Compare flat 22% vs aggregate withholding.

Calculate bonus

The 30-second version

1.Vermont has 4 progressive brackets: 3.35% / 6.6% / 7.6% / 8.75% top above $229,450 (single). Most professionals pay 6.6-7.6% effective.
2.Burlington (Chittenden County) is the VT growth corridor — UVM Medical Center, UVM University, Champlain College, BETA Technologies, Burton Snowboards. Tech + healthcare + education anchor.
3.Property tax 1.90% effective — among highest in nation (substitution for revenue diversification). Homestead declaration reduces primary residence property tax.
4.Reciprocity with NH, MA, NY — Vermont residents working in those states pay only home-state tax + vice versa. NH residents working in VT save substantially (NH 0% income tax).
5.Major employers: UVM Medical Center (largest employer ~9,000), University of Vermont, Champlain College, Burton Snowboards, BETA Technologies (electric aircraft), Dealer.com, plus ski resort industry (Stowe, Killington, Sugarbush, Mount Snow). Healthcare + education + tech + tourism anchor.

Why you can trust these numbers

Numbers reflect 2026 IRS federal brackets, FICA caps, and Vermont Department of Taxes progressive brackets. The calculator at the top of this page applies VT's progressive rates accurately. Vermont uses standard deduction $7,200 single / $14,400 MFJ for 2026 (smaller than federal). Vermont conforms to federal AGI starting point — federal pre-tax 401(k) and HSA contributions reduce VT taxable income identically to federal. Reciprocity with NH/MA/NY for cross-border workers via Form HC-1 process.

Sources: federal brackets + standard deduction from IRS Rev. Proc. 2025-32; state brackets verified against the Tax Foundation 2026 State Income Tax Rates compilation and the Vermont Department of Revenue's published 2026 schedule.

Our honest opinion (which is just an opinion)

Vermont has the most progressive social services in the country combined with one of the highest state-and-local tax burdens. For professionals who specifically value Vermont's universal healthcare access + robust public education funding + scenic outdoor lifestyle, the math can work; for cost-optimizing professionals, neighboring NH (0% wage tax) or MA (5% flat tax) typically offers better total economics.

The case for Vermont:

Burlington tech corridor (BETA Technologies, Burton, Dealer.com) growing post-2020
UVM Medical Center largest employer + strong healthcare ecosystem
Universal healthcare access (Vermont Health Connect)
Robust public education funding + small school district sizes
Scenic mountain + lake outdoor lifestyle (Lake Champlain, Green Mountains)
Vermont Earned Income Tax Credit (38% of federal — most generous in nation)

The case against:

8.75% top tax above $229K — among higher rates in the country
Property tax 1.90% effective — among highest in nation
Estate tax threshold $5M (lower than federal $13.6M)
Limited high-comp career mobility (Burlington is the only major employment center)
Cold winters significant (December-March) — meaningful lifestyle factor
Cost of living higher than NH or upstate NY for comparable amenities

Honest take: Vermont is genuinely competitive for professionals who specifically value the state's progressive services + scenic lifestyle + UVM Medical Center / Burlington tech employment. For cost-optimizing professionals, NH (0% wage tax + 0% sales tax) or MA (5% flat tax + Boston tech / biotech market depth) typically offers better total economics. For ski-resort-area retirees, the lifestyle premium can outweigh the tax burden — but estate tax + property tax are persistent caveats. NH-VT border residents (Hanover NH commuting to Dartmouth-Hitchcock VT) capture meaningful NH 0% tax via reciprocity.

Sources & further reading

A few honest notes

Not personal tax, legal, or financial advice. Verify with a licensed CPA, EA, or tax attorney before making meaningful decisions.
Tax law changes. This guide reflects 2026 IRS schedules and current Vermont Department of Taxes rules.
Vermont reciprocity rules with NH/MA/NY require Form HC-1 process. Verify withholding annually.
Vermont homestead declaration must be filed annually for primary residence property tax reduction.
Property tax estimates vary by town. Burlington-area towns (Burlington, South Burlington, Williston, Essex) have different rates from rural communities.
Vermont estate tax threshold $5M is lower than federal — meaningful for HNW retirees.
The numbers are illustrative — scenarios don't include every credit, deduction, or wrinkle that might apply to you.
No client relationship is created by reading this page.

Last updated April 2026 with 2026 IRS schedules and current Vermont Department of Taxes guidance.