Vermont Paycheck Calculator (Hourly)

How the Vermont Paycheck Calculator Works

This Vermont paycheck calculator hourly tool estimates your take-home pay by subtracting federal income tax, Vermont state income tax, and FICA (Social Security + Medicare) from your gross earnings. Vermont is one of the states that imposes its own progressive income tax on top of federal obligations, which means your paycheck faces deductions at both levels. The calculator converts your hourly rate into an annual salary figure, then applies the appropriate federal and Vermont state tax brackets along with standard deductions to determine your net pay per pay period.

The core formula:

Take-Home = Gross Pay - Federal Tax - Vermont Tax - Social Security - Medicare $$P_{\text{net}}=P_{\text{gross}}-T_{\text{fed}}-T_{\text{VT}}-T_{\text{SS}}-T_{\text{Med}}$$

Federal income tax uses a progressive bracket system where different portions of your income are taxed at increasing rates from 10% up to 37%. The calculator first subtracts your standard deduction from gross income to arrive at taxable income, then applies each bracket in order. For 2026, the federal standard deduction is $15,000 for single filers, $30,000 for married filing jointly, and $22,500 for head of household. Social Security tax is a flat 6.2% on wages up to the annual cap of $176,100, while Medicare is a flat 1.45% on all wages with no cap. For high earners above $200,000 (single) or $250,000 (married filing jointly), an additional 0.9% Medicare surtax applies. Vermont then adds its own layer of taxation with four progressive brackets ranging from 3.55% to 8.75%, applied after the Vermont standard deduction of $7,250 for single filers, $14,500 for married filing jointly, or $10,900 for head of household.

Vermont's economy is shaped by industries that are distinctly tied to the state's geography and culture. Agriculture remains central, with dairy farming representing the backbone of the rural economy and Vermont producing more maple syrup than any other state in the nation, accounting for roughly half of all US maple syrup output. Tourism drives significant seasonal employment, particularly during ski season at resorts like Stowe, Killington, and Sugarbush, and during fall foliage season when visitors flock to experience the state's legendary autumn colors. Major employers include Burton Snowboards headquartered in Burlington, Ben and Jerry's ice cream based in Waterbury, and the legacy of Green Mountain Coffee Roasters (now part of Keurig Dr Pepper). Understanding these industries matters for paycheck planning because many Vermont workers experience seasonal income fluctuations that affect their tax withholding throughout the year.

Vermont Hourly Paycheck Tax Breakdown

Vermont imposes a four-bracket progressive income tax on wages and salaries. The 2026 brackets for single filers are 3.55% on the first $45,400 of taxable income, 6.8% on income from $45,400 to $110,050, 7.8% on income from $110,050 to $229,550, and 8.75% on all taxable income above $229,550. The Vermont standard deduction mirrors the state's own schedule: $7,250 for single filers, $14,500 for married filing jointly, and $10,900 for head of household. These deductions are subtracted from your gross income before the state brackets are applied.

Compared to its neighbors, Vermont sits in the higher tier of state income tax burdens. Directly to the east, New Hampshire imposes no state income tax on wages whatsoever, creating a stark contrast that drives many cross-border commuters to live on the New Hampshire side of the Connecticut River. To the south, Massachusetts charges a flat 5% on wages plus a 4% surtax on income above $1 million, which is simpler but can be lower or higher than Vermont's rate depending on income level. For workers earning between $50,000 and $110,000, Vermont's effective state tax rate tends to run between 4% and 5.5%, roughly comparable to Massachusetts's flat 5%. To the west, New York has even higher rates reaching 10.9% at the top bracket when state and city taxes combine, making Vermont look moderate by comparison for high earners.

Vermont is notable for being the state with the smallest capital city in the United States. Montpelier has a population of roughly 8,000 residents, making it the only state capital without a McDonald's restaurant. Burlington, located on the eastern shore of Lake Champlain, is the state's largest city with a metro area of approximately 225,000 and serves as the economic hub of the state. The concentration of state government jobs in Montpelier and healthcare, education, and technology jobs in Burlington means that a significant portion of Vermont's workforce is concentrated in these two areas, both of which sit within commuting distance of the New Hampshire border.

Your Vermont paycheck deductions include both federal and state components:

• Federal income tax: Progressive brackets from 10% to 37% based on taxable income (gross minus standard deduction and pre-tax contributions). The 2026 standard deduction is $15,000 for single filers, $30,000 for married filing jointly, and $22,500 for head of household. The first $11,925 of taxable income is taxed at 10%, income from $11,926 to $48,475 at 12%, and income from $48,476 to $103,350 at 22%.
• Vermont state income tax: Progressive brackets of 3.55%, 6.8%, 7.8%, and 8.75% applied to income after the Vermont standard deduction. Vermont calculates its tax independently from the federal calculation using its own deduction amounts and bracket thresholds.
• Social Security: 6.2% on wages up to $176,100 per year. Your employer also pays 6.2%, making the combined rate 12.4%.
• Medicare: 1.45% on all wages, with an additional 0.9% surtax on wages above $200,000 (single) or $250,000 (married filing jointly). Medicare has no wage cap.

Variable Definitions

Hourly Wage: Your gross pay per hour before any deductions. Vermont's economy features a wide range of hourly rates depending on sector and location. A dairy farm worker in the Northeast Kingdom might earn $14 to $18 per hour, while a healthcare professional at the University of Vermont Medical Center in Burlington could earn $28 to $55 per hour. Ski resort employees at Stowe or Killington typically earn $16 to $25 per hour during the winter season, with management positions paying more. Enter your actual hourly rate, not including overtime premium. If you want to convert an annual salary to hourly, use our salary calculator to determine your equivalent hourly rate.

Hours per Week: Total regular hours worked weekly. Vermont follows federal overtime rules under the Fair Labor Standards Act: hours above 40 per week must be paid at 1.5x your regular rate. Vermont's seasonal industries, particularly maple sugaring in spring and tourism in summer and winter, often involve variable weekly hours. A maple syrup producer might work 60 hours per week during the March-April sugaring season but far fewer hours in off months. Enter only regular hours here, as overtime calculations require separate treatment.

Pay Frequency: How often you receive a paycheck. Most Vermont employers use biweekly (26 pay periods) or weekly (52 pay periods) pay schedules. Vermont law requires employers to pay wages at least once per week for hourly workers, though biweekly and semi-monthly schedules are also permitted with employee agreement. Your pay frequency affects per-period withholding amounts but does not change your annual tax liability.

Filing Status: Your federal and Vermont state tax classification. This affects both your tax bracket thresholds and standard deduction amounts at both levels. For example, a worker earning $55,000 who files as single has a federal standard deduction of $15,000 and a Vermont standard deduction of $7,250, while the same worker filing as married filing jointly receives a $30,000 federal deduction and $14,500 Vermont deduction. Choosing the correct filing status is especially important in Vermont because both federal and state taxes use progressive brackets that shift based on this selection.

Pre-Tax Deduction: Percentage for 401(k), 403(b), traditional IRA, or HSA contributions. Pre-tax contributions reduce your taxable income for both federal and Vermont state tax calculations, creating a double tax benefit that is particularly valuable in a state with rates as high as 8.75%. A worker in the 22% federal bracket and the 6.8% Vermont bracket who contributes $5,000 to a 401(k) saves approximately $1,100 in federal tax and $340 in state tax, for a combined savings of roughly $1,440. Many Vermont employers in healthcare and education offer robust retirement plan options that workers should take advantage of to reduce their combined tax burden.

Worked Example 1: Vermont Hourly Paycheck at $18/Hour

A single filer earning $18/hour, working 40 hours/week, biweekly pay, 3% pre-tax 401(k):

1. Annual gross: $18 x 40 x 52 = $37,440
2. Pre-tax deduction: $37,440 x 3% = $1,123.20
3. Taxable gross: $37,440 - $1,123.20 = $36,316.80
4. Federal taxable income: $36,316.80 - $15,000 (single std deduction) = $21,316.80
5. Federal tax: ($11,925 x 10%) + ($9,391.80 x 12%) = $1,192.50 + $1,127.02 = $2,319.52
6. Vermont taxable income: $36,316.80 - $7,250 (VT single std deduction) = $29,066.80
7. Vermont tax: $29,066.80 x 3.55% = $1,031.87
8. Social Security: $36,316.80 x 6.2% = $2,251.64
9. Medicare: $36,316.80 x 1.45% = $526.59
10. Total deductions: $1,123.20 + $2,319.52 + $1,031.87 + $2,251.64 + $526.59 = $7,252.82
11. Annual take-home: $37,440 - $7,252.82 = $30,187.18
12. Biweekly take-home: $30,187.18 / 26 = $1,161.05

At $18/hour, this single Vermont worker takes home approximately 80.6% of gross pay. Compare this to the same worker in New Hampshire, who would take home approximately $31,219.05 annually, or about $1,031.87 more per year, because New Hampshire has no state income tax. That difference of roughly $40 per biweekly paycheck represents the direct cost of Vermont's state income tax at this income level.

Worked Example 2: Vermont Hourly Paycheck at $47/Hour

A married filing jointly filer earning $47/hour, working 40 hours/week, biweekly pay, 8% pre-tax 401(k):

1. Annual gross: $47 x 40 x 52 = $97,760
2. Pre-tax deduction: $97,760 x 8% = $7,820.80
3. Taxable gross: $97,760 - $7,820.80 = $89,939.20
4. Federal taxable income: $89,939.20 - $30,000 (married std deduction) = $59,939.20
5. Federal tax: ($23,850 x 10%) + ($36,089.20 x 12%) = $2,385 + $4,330.70 = $6,715.70
6. Vermont taxable income: $89,939.20 - $14,500 (VT married std deduction) = $75,439.20
7. Vermont tax: ($45,400 x 3.55%) + ($30,039.20 x 6.8%) = $1,611.70 + $2,042.67 = $3,654.37
8. Social Security: $89,939.20 x 6.2% = $5,576.23
9. Medicare: $89,939.20 x 1.45% = $1,304.12
10. Total deductions: $7,820.80 + $6,715.70 + $3,654.37 + $5,576.23 + $1,304.12 = $25,071.22
11. Annual take-home: $97,760 - $25,071.22 = $72,688.78
12. Biweekly take-home: $72,688.78 / 26 = $2,795.72

At $47/hour with an 8% 401(k) contribution, this married Vermont worker takes home roughly 74.4% of gross pay. The Vermont state tax of $3,654.37 represents a meaningful portion of total deductions. A married worker earning the same wage in New Hampshire would save that entire amount, taking home approximately $76,343.15 annually instead. However, this Vermont worker benefits from Vermont's funded public services, including some of the best public schools in the nation and comprehensive state healthcare programs.

Edge Cases and Advanced Scenarios

Seasonal tourism and ski resort workers: Vermont's tourism industry employs thousands of seasonal workers, particularly at ski resorts like Stowe, Killington, Sugarbush, and Jay Peak, as well as at summer destinations, fall foliage tour operators, and farm-to-table restaurants. Seasonal workers face unique tax withholding challenges because their federal and Vermont state withholding is typically calculated based on annualized earnings from a short season. A ski instructor earning $22/hour for 20 weeks may have withholding calculated as though they earn that rate year-round, leading to over-withholding that results in a large refund at tax time. Adjusting your W-4 and Vermont state withholding form to reflect your actual expected annual income from all jobs helps ensure more accurate per-paycheck amounts during the working season.

Cross-border commuters to New Hampshire: The Connecticut River forms much of the border between Vermont and New Hampshire, and many workers commute between the two states daily. Vermont residents who work in New Hampshire still owe Vermont income tax on all their wages because Vermont taxes residents on worldwide income. Conversely, New Hampshire residents who work in Vermont generally owe Vermont income tax on their Vermont-source wages, though they receive a credit from their home state. Since New Hampshire has no income tax, the practical effect is that a New Hampshire resident commuting to Vermont pays Vermont tax with no offsetting credit. This tax asymmetry is a significant factor in where workers along the Connecticut River corridor choose to live, with many opting for the New Hampshire side to avoid Vermont's state income tax on non-Vermont-source income.

Dairy farm and agricultural workers: Vermont has more dairy cows per capita than any other state, and dairy farming remains a critical part of the state's rural economy, particularly in Franklin, Addison, and Orleans counties. Agricultural workers may be compensated through a combination of hourly wages, housing benefits, and farm products. For paycheck calculation purposes, only cash wages are subject to income tax withholding, but the fair market value of non-cash compensation such as housing may be taxable and should be reported. Dairy farm work often involves long hours during calving season and milking schedules, and Vermont agricultural employers are exempt from certain federal overtime requirements under the FLSA, meaning some farm workers do not receive time-and-a-half for hours above 40 per week.

Remote workers for Boston and New York City companies: Vermont has actively marketed itself as a destination for remote workers, at one point offering relocation incentives of up to $10,000 for workers who moved to Vermont while keeping their out-of-state jobs. Remote workers living in Vermont and working for employers in Massachusetts, New York, or other states must pay Vermont income tax on all their earnings as Vermont residents. However, they may also face tax obligations in the employer's state depending on that state's rules for remote workers. Massachusetts, in particular, has aggressively taxed remote workers who work for Massachusetts-based employers, which could result in double taxation that is only partially offset by Vermont's credit for taxes paid to other states. Workers in this situation should carefully track their physical work locations and consult a tax professional to minimize their combined state tax burden.

What to Do with Your Vermont Paycheck Result

• Compare your calculated result to your actual pay stub. Any discrepancy likely comes from additional payroll deductions like health insurance, dental, vision, or union dues that this calculator does not include.
• Review both your federal W-4 and Vermont Form W-4VT annually. Vermont requires a separate state withholding form, and keeping both forms current ensures your per-paycheck withholding matches your actual tax liability as closely as possible.
• Use the result to compare your take-home pay with neighboring states. If you live near the New Hampshire border, calculating the difference between Vermont and New Hampshire take-home pay can help you make informed decisions about where to live or work.
• Consider increasing your pre-tax 401(k) contribution if your take-home pay allows it. In Vermont, pre-tax contributions reduce both your federal and state tax bills simultaneously, making retirement savings particularly tax-efficient compared to a state with no income tax where only federal taxes are affected.
• Use our federal income tax percentage calculator to check your effective federal tax rate. This helps you understand what percentage of your total income goes to federal taxes after deductions and bracket calculations, which is often much lower than your marginal bracket rate.

Related Calculators

• New Hampshire Paycheck Calculator (Hourly) — compare take-home pay with neighboring New Hampshire, which has no state income tax on wages.
• Massachusetts Paycheck Calculator (Hourly) — compare with Massachusetts and its flat 5% income tax rate.
• New York Paycheck Calculator (Hourly) — compare with New York's progressive brackets reaching up to 10.9%.
• Salary Calculator — convert between hourly and annual pay.
• Income Tax Calculator — estimate your total federal income tax liability.
• Federal Income Tax Percentage Calculator — find your effective federal tax rate.
• Paycheck Calculator by State — compare take-home pay across all 50 states and DC.