Vermont Income Tax Calculator 2026

Vermont’s four brackets in practice

Vermont taxes income at 3.35%, 6.6%, 7.6% and 8.75%. For 2026, single filers move from 3.35% to 6.6% at $50,750 of Vermont taxable income, and married couples at $84,700. The jump from 3.35% to 6.6% is one of the steepest first steps of any state, so middle-income Vermonters pay more than the low starting rate suggests.

Vermont taxable income starts from federal AGI, then subtracts the Vermont standard deduction ($7,650 single, $15,300 joint in our calculator) and $5,400 per personal exemption. Charitable giving earns a nonrefundable credit of 5% of the first $20,000 of eligible contributions, worth up to $1,000.

The 3% minimum tax above $150,000

If your federal AGI is over $150,000, Vermont tax is the higher of the normal rate-schedule tax or 3% of AGI (less interest from U.S. obligations). For a single wage earner on $170,000, the regular tax is about $9,050 and 3% of AGI is $5,100, so the regular tax applies. The minimum mostly affects high-AGI filers whose Vermont taxable income is pushed well below AGI by exclusions, and our calculator does not model it.

Social Security and retirement income

Vermont fully exempts Social Security benefits for joint filers with AGI up to $65,000 and other filers up to $50,000. The exemption phases out over the next $10,000, ending at $75,000 (joint) or $60,000 (others).

Separately, retirees can exclude the first $10,000 of military retirement income, or the first $10,000 from the federal Civil Service Retirement System or certain other public retirement systems (with the same income limits as the Social Security exemption). You can claim only one of the Social Security, military retirement, CSRS or other retirement system exemptions, even if more than one applies, so pick the one worth most.

Vermont credits

• Child tax credit: $1,000 per child aged six or younger, fully refundable, reduced by $20 per $1,000 of AGI over $125,000 and gone at $175,000.
• Child and dependent care credit: 72% of the federal credit, fully refundable.
• Charitable contribution credit: 5% of the first $20,000 of eligible donations.
• Veteran tax credit: $250, refundable, from tax year 2025, phasing out between $25,000 and $30,000 of AGI.
• Vermont earned income tax credit, the nonrefundable elderly or disabled credit (24% of the federal credit) and a nonrefundable credit of 10% of the first $2,500 contributed to the Vermont 529 plan, per taxpayer per beneficiary.

Filing Form IN-111

Residents, part-year residents and nonresidents with Vermont income file Form IN-111. The 2026 return is due April 15, 2027; a federal extension automatically extends the Vermont filing date to October 15, and Form IN-151 is needed only if you send an extension payment. No extension moves the payment date. A return filed more than 60 days after April 15 without an extension, or after October 15 with one, gets a $50 late-filing penalty even if no tax is due. Nonresidents must file if they had more than $1,000 of gross income as a nonresident.

Homeowners also file a Homestead Declaration (Form HS-122) by April 15, and there is no extension for it. Renters can file a Renter Credit Claim (Form RCC-146), due April 15 but accepted late until October 15.