vermont paycheck calculator
Looking to figure out your take-home pay in Vermont? You're in the right place. Our free calculator helps Vermont residents understand exactly what they'll earn after taxes. Vermont has a state income tax rate of 3.35% - 8.75%.
About the vermont paycheck calculator
Vermont's graduated income tax reaches 8.75% - among America's highest state rates. Combined with elevated property taxes and above-average living costs, the tax burden creates real financial pressure. Burlington anchors the small economy through healthcare systems, education, and food production industries. Housing has appreciated substantially despite limited job markets - median prices often exceed $350,000-400,000 in desirable areas. The state offers exceptional quality of life, strong sense of community, beautiful four seasons, and progressive culture. But the financial reality requires solid income - six-figure salaries may require careful budgeting given the combined weight of high state taxes, substantial property taxes, elevated housing costs, and expensive heating during harsh winters.
Tax Information
Vermont applies graduated income tax from 3.35% to 8.75%. Federal income tax (10-37% progressive) layers on top. Social Security withholding takes 6.2% of wages up to $168,600. Medicare requires 1.45% of all income, with high earners paying an additional 0.9% above $200,000.
Understanding Your Vermont Paycheck
When you get paid in Vermont, several deductions come out before you see your take-home pay. Our tool breaks down all these deductions clearly. Here's what it calculates:
- Federal Income Tax: This depends on your income and filing status, following the IRS tax brackets that apply nationwide
- State Income Tax: Vermont charges 3.35% - 8.75% on your income
- Social Security Tax: 6.2% of your gross wages (capped at the annual wage base)
- Medicare Tax: 1.45% of all gross wages
- Additional Medicare Tax: 0.9% on earnings above $200,000 for single filers
How to Use This Calculator
It's pretty straightforward. Just follow these steps:
- Enter your gross pay (what you earn before any deductions)
- Pick how often you get paid - weekly, bi-weekly, semi-monthly, monthly, or annually
- Select Vermont as your state
- Choose your filing status (single, married, etc.)
- Hit calculate and see your results
You'll see a detailed breakdown showing exactly where your money goes. Get instant, accurate results with our free tool.
How Vermont Compares
Tax Comparison
Vermont charges state income tax at 3.35% - 8.75%. How does that stack up against other states? Well, it depends on your income level and what you value. States without income tax might seem appealing, but they often make up for it with higher property or sales taxes.
| State | Income Tax Rate | Comparison |
|---|---|---|
| Vermont | 3.35% - 8.75% | Your State |
| Indiana | 3.23% | Has income tax |
| Colorado | 4.4% | Has income tax |
| Illinois | 4.95% | Has income tax |
What Makes Vermont Different?
Every state with income tax handles it differently. Vermont's approach to taxation affects how much you take home. Some states use a flat rate, while others have progressive brackets like the federal system. Understanding this helps you plan better, especially if you're considering a move or comparing job offers.
Why Use Our Vermont Paycheck Calculator?
- Accurate for Vermont: Uses current tax rates specific to your state
- Easy to understand: No confusing jargon or complicated forms
- Detailed breakdown: See exactly how much goes to each tax
- Free to use: No signup required, no hidden fees
- Updated regularly: We keep up with tax law changes so you don't have to
Living and Working in Vermont
Economic Overview
Job Market
Vermont's small economy centers on healthcare, education, tourism, and agriculture. Healthcare systems provide major employment. Education sector significant. Tourism supports ski resorts and seasonal businesses. Food production and agriculture maintain heritage presence. Remote work increasingly important. A $75,000 position provides moderate lifestyle given high taxes and elevated costs.
Cost of Living
Vermont ranks among more expensive states. Housing costs substantial - median prices often exceed $350,000-400,000 in desirable areas. Property taxes run high. Heating costs significant given harsh winters. Groceries and services cost more than national averages. Sales tax reaches 6%. The high tax burden combined with elevated costs means even solid six-figure incomes require careful budgeting.
Frequently Asked Questions
How accurate is this calculator?
Our calculator is very accurate for most people. We use the current federal and Vermont state tax rates. However, everyone's situation is unique - things like additional withholdings, pre-tax deductions (401k, health insurance), or local taxes can affect your actual paycheck. Think of this as a solid estimate rather than an exact figure.
Why is my actual paycheck different?
A few reasons. Your employer might withhold extra for benefits, retirement contributions, or you might have requested additional withholding. Some Vermont localities also have their own taxes. Check your pay stub for the full breakdown.
Should I adjust my withholding?
That depends. If you're getting a huge refund every year, you're basically giving the government an interest-free loan. If you owe a lot at tax time, you might want to withhold more. The sweet spot is owing or getting back a small amount. Use this calculator to see if your current withholding makes sense.