The formulas
- Taxable income = income - standard deduction - personal exemptions (when applied), not below zero
- Tax from the preliminary 2026 Vermont schedules (Form IN-114): 3.35%, 6.6%, 7.6%, 8.75%
- Standard deduction (2025) $7,650 single or separate, $11,450 head of household, $15,300 joint; personal exemption (2025) $5,300 per person
- Federal AGI over $150,000: tax is at least 3% of federal AGI
- Vermont income tax = tax from the rate schedule + surtax
How it works
Tax year: 2026 rates and brackets; 2025 standard deduction and exemption amounts, the latest the state has published.
Vermont taxes income at 3.35% to 8.75%. Enter income before state deductions and choose whether to apply the state standard deduction and personal exemptions, or enter taxable income and switch them off. The tool computes state income tax only; credits other than those named are not applied.
Vermont's preliminary 2026 schedules start at 3.35 percent and reach 8.75 percent over $256,300 single ($312,050 joint, $284,150 head of household, $156,025 separate), as published with the 2026 Form IN-114 estimated tax instructions. The 2026 standard deduction and exemption are not yet published, so the tool uses the 2025 amounts: $7,650 single or separate, $11,450 head of household, $15,300 joint, and $5,300 per person.
When federal AGI is over $150,000, Vermont tax is the greater of the schedule tax and 3 percent of federal AGI; the tool applies that minimum to the income entered. Below $75,000 of taxable income Vermont's return uses tax tables, so the return figure can differ by cents.
Local taxes: Vermont cities and towns do not levy a local income tax.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
What is the Vermont income tax rate for 2026?
Vermont taxes income at 3.35% to 8.75% for 2026. Tax from the preliminary 2026 Vermont schedules (Form IN-114): 3.35%, 6.6%, 7.6%, 8.75%.
What is the Vermont standard deduction?
Single: $7,650; Married filing jointly or surviving spouse: $15,300; Head of household: $11,450; Married filing separately: $7,650 (2025, at low income).
Are there local income taxes in Vermont?
Vermont cities and towns do not levy a local income tax.
Sources
- Vermont Department of Taxes, 2026 Form IN-114 instructions (2026 rate schedules)
- Vermont Department of Taxes, 2025 income tax booklet (standard deduction, exemption, minimum tax)
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