Vermont Tax Calculators.
2025 income tax rates, brackets, and sales tax for Vermont. Free calculators with Vermont-specific defaults.Income Tax
Vermont has a progressive income tax with 4 brackets ranging from 3.35% to 8.75%. Vermont conforms closely to federal tax law, using federal taxable income as the starting point for state calculations.
| 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% |
Sales Tax
Groceries and clothing are exempt from sales tax. Prescription drugs are exempt.
Vermont's top rate of 8.75% is well above the national average, ranking among the top 10 highest state income tax rates in the country.
What is Vermont's income tax rate?
Vermont has four tax brackets: 3.35%, 6.6%, 7.6%, and 8.75%. The top rate applies to income over $229,550 for single filers.
Does Vermont tax groceries or clothing?
No, both groceries and clothing are exempt from Vermont's 6% state sales tax.
How does Vermont compare to New Hampshire?
Vermont has significantly higher taxes than neighboring New Hampshire, which has no income tax and no sales tax. However, Vermont offers more state-funded services and programs.