Vermont Income Tax Calculator (2024-2025)
Estimate your Vermont state income tax, marginal rate, and take‑home pay based on your filing status, income, and deductions.
Start with your federal adjusted gross income, then apply Vermont additions/subtractions to approximate your VT taxable income.
This calculator uses typical Vermont‑aligned deduction levels for illustration; always check current VT rules if you itemize.
Enter estimated VT credits (e.g., child & dependent care, EITC, other non‑refundable credits).
How this Vermont income tax calculator works
This tool estimates your Vermont state personal income tax using the current VT tax brackets and a simplified model of deductions and credits. It is designed for quick planning and education, not for filing your return.
1. Vermont income tax brackets (2024 example)
Vermont uses a progressive tax system: different portions of your taxable income are taxed at different rates. For illustration, this calculator uses representative 2024‑style brackets for single filers:
- 3.35% on the first $45,000 of taxable income
- 6.60% on income from $45,001 to $110,000
- 7.60% on income from $110,001 to $200,000
- 8.75% on income over $200,000
Brackets for married filing jointly, married filing separately, and head of household are scaled versions of these thresholds. Always confirm current official tables with the Vermont Department of Taxes.
The calculator:
- Takes your Vermont income (based on federal AGI plus VT adjustments).
- Subtracts either a standard deduction, your itemized deductions, or no deductions (your choice).
- Applies the VT tax brackets for your filing status.
- Subtracts any Vermont tax credits you enter.
2. Formula for Vermont tax in each bracket
For each bracket, the tax is:
If your taxable income is between limits \(L\) and \(U\) with rate \(r\), then the tax from that bracket is:
\[ \text{Tax}_{\text{bracket}} = \max\bigl(0,\ \min(\text{Taxable Income}, U) - L\bigr) \times r \]
Total Vermont tax before credits is the sum of the tax from all brackets up to your income level.
3. Effective vs. marginal Vermont tax rate
- Effective VT tax rate = \(\text{Total VT tax} \div \text{Taxable income}\). This is your overall average rate.
- Marginal VT tax rate = the rate on your last dollar of income (the bracket you are in).
Your marginal rate is what matters most when you ask, “If I earn one more dollar, how much Vermont tax will I pay on it?”
What you need to use this Vermont tax calculator
- Your expected federal adjusted gross income (AGI).
- Any major Vermont additions or subtractions to AGI (e.g., certain interest, Social Security adjustments).
- Whether you’ll take the standard deduction or itemize.
- Rough amounts of any Vermont tax credits you qualify for.
Limitations and important notes
- This is an educational estimate, not a filing tool.
- It does not handle every Vermont‑specific rule (phase‑outs, special credits, part‑year residency, etc.).
- For official guidance, always refer to the Vermont Department of Taxes or a qualified tax professional.
Frequently asked questions about Vermont income tax
Is Vermont a high income tax state?
Vermont’s top marginal rates are relatively high compared with many states, but your effective rate may be much lower once deductions and credits are applied. This calculator helps you see your own effective rate, not just the top bracket.
Does Vermont tax Social Security benefits?
Vermont may exempt some or all Social Security benefits depending on your income level. This calculator lets you approximate your total VT tax, but for precise treatment of Social Security you should follow the official Vermont worksheets or use professional software.
Are capital gains taxed differently in Vermont?
Vermont generally starts from your federal taxable income, which already reflects federal capital gains rules. Vermont may offer partial exclusions or adjustments for certain capital gains; these are not modeled in detail here.
Can this calculator handle part‑year residents?
Not directly. Part‑year and non‑residents often allocate income between Vermont and other states using VT‑specific forms. You can still use this tool by entering only the portion of income you expect to be taxable by Vermont, but the result is only an approximation.
Should I rely on this for filing my Vermont return?
No. This is a planning and education tool. For filing, use approved tax software, the official Vermont forms and instructions, or work with a tax professional.