Vermont Income Tax Rates & Brackets — 2026

Every filing status, as published by Vermont Department of Taxes. Rates apply to Vermont taxable income — that is income after the deductions and exemptions shown on each card.

Rates are marginal: the 8.75% top rate applies only to the dollars above the top threshold, never to your whole income. A single filer on $100,000 in Vermont subtracts $13,250 of deductions and exemptions, then pays each bracket in turn on $86,750 of taxable income — $4,076 in all, or 4.08% of gross income. Marginal vs effective rate, explained.

Single filer, standard deduction, no dependents. Rank is out of 50 jurisdictions, lowest tax first.

Change the income, filing status and number of dependents to see the bracket-by-bracket breakdown.

State income tax owed by a single filer on $100,000 in 2026.

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Vermont's income tax changed between 2025 and 2026. A single filer on $100,000 owes $64 less than in 2025.

The 2025 rules are kept in full on the Vermont 2025 tax year page, for amended returns and late filings.

• ≈IndexingEffective 2026-01-01

  Vermont's bracket thresholds, standard deduction and personal exemption were adjusted for inflation for tax year 2026 (single 3.35% bracket top rose from $49,400 to $50,750; personal exemption from $5,300 to $5,400).

  Vermont Department of Taxes

How Vermont treats retirement income in tax year 2025. This is verified separately from the rate schedule above and can be for a different tax year.

• Social Security exemption, income limit $50,000
• Civil Service Retirement System exclusion — up to $10,000, income limit $60,000
• Other eligible retirement system exclusion — up to $10,000, income limit $60,000. Only for benefits based on earnings not covered by Social Security.
• Military retirement exclusion — up to $10,000. Eligibility follows the Social Security exemption thresholds.

Not modelled: The phase-out between the stated bounds is described as smooth but its exact formula is not modelled.

Source: Vermont Department of Taxes — Seniors and Retirees (retrieved 2026-09-04). Compare every state.

How Vermont taxes a capital gain in tax year 2025. This is verified separately from the rate schedule above and can be for a different tax year.

Exclusions that reach only certain assets

• 40% exclusion for assets held more than three years — 40% of adjusted net capital gain on assets held more than three years, capped at $350,000 and further capped at 40% of federal taxable income. Real estate used as a primary or non-primary home, depreciable personal property other than farm property and standing timber, and publicly traded stocks, bonds and other financial instruments are all excluded from it.

These do not change the rates above, which are the rates on a gain that qualifies for no exclusion — a share of stock, for instance.

Not modelled: Which limb applies turns on the asset and the holding period, which this dataset does not hold per taxpayer. The rate recorded is the rate above the flat exclusion.

Source: Vermont Department of Taxes — 2025 Schedule IN-153, Vermont Capital Gains Exclusion Calculation (retrieved 2026-09-19). Compare every state.

No Vermont municipality levies an individual income or earnings tax.

• ·Vermont has four graduated brackets (3.35%, 6.60%, 7.60%, 8.75%) with separate schedules for each filing status.
• ·Brackets, the Vermont standard deduction and the Vermont personal exemption are all indexed annually for inflation.
• ·Married filing separately thresholds are exactly one half of the married filing jointly thresholds.
• ·Vermont applies a minimum tax: if adjusted gross income exceeds $150,000, Vermont tax is the greater of (1) 3% of adjusted gross income less interest from U.S. obligations, or (2) the rate-schedule calculation.
• ·Vermont uses its own standard deduction and personal exemption; it does not conform to the federal standard deduction.
• ·Head-of-household figures in this record are carried forward from tax year 2025 and are NOT the 2026 amounts; Vermont had not published a reachable 2026 head-of-household rate schedule as of the retrieval date.

Vermont allows a capital gains exclusion: a flat exclusion of up to $5,000 of adjusted net capital gain, or (alternatively) 40% of adjusted net capital gain on assets held more than three years, subject to statutory limits. Otherwise capital gains are taxed as ordinary income.