Vermont Income Tax Rates 2025
Vermont has a progressive income tax system with 4 brackets ranging from 3.35% to 8.75%. The state's tax brackets are tied to federal taxable income, making the filing process relatively straightforward.
Tax Type
Progressive
Rate Range
3.35% – 8.75%
Brackets
4
2025 Tax Brackets — Single Filer
| Taxable Income | Rate |
|---|---|
| $0 – $45,400 | 3.35% |
| $45,400 – $110,050 | 6.6% |
| $110,050 – $229,550 | 7.6% |
| Over $229,550 | 8.75% |
How It Works
Vermont's progressive tax system means each portion of your income is taxed at the rate for that bracket. Vermont taxes Social Security benefits to the extent they are taxed federally, though it offers an exemption for lower-income filers. The state also provides various credits and deductions to reduce the tax burden for eligible residents.