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
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Vermont is only part of the equation — federal taxes apply too.
State Tax Ranking
At $75,000 income (single filer), Vermont ranks #28 out of 51 states — where #1 is the lowest tax burden.
Best states to move to from Vermont →Tax at Different Income Levels
| Income | State Tax | Effective Rate | Take-Home |
|---|---|---|---|
| $50,000 | $1,825 | 3.65% | $44,304 |
| $75,000 | $3,475 | 4.63% | $63,577 |
| $100,000 | $5,125 | 5.12% | $81,427 |
| $150,000 | $8,820 | 5.88% | $116,113 |
| $200,000 | $12,620 | 6.31% | $150,313 |
Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).
2025 Tax Brackets — Single Filer
| Taxable Income | Rate |
|---|---|
| $0 – $45,400 | 3.4% |
| $45,400 – $110,450 | 6.6% |
| $110,450 – $229,050 | 7.6% |
| Over $229,050 | 8.8% |
2025 Tax Brackets — Married Filing Jointly
| Taxable Income | Rate |
|---|---|
| $0 – $76,000 | 3.4% |
| $76,000 – $184,000 | 6.6% |
| $184,000 – $229,050 | 7.6% |
| Over $229,050 | 8.8% |
Tax Overview
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tax Planning Tip
In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
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.
Property Tax & Cost of Living
Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.
Explore Vermont taxes
Frequently asked questions
What is Vermont's income tax rate in 2025?
Vermont has a progressive income tax with 4 brackets ranging from 3.35% to 8.75%. Your effective rate depends on your total taxable income.
Does Vermont tax Social Security benefits?
Vermont taxes Social Security benefits to the extent they are taxed federally, though it offers an exemption for lower-income filers.