Vermont Tax Overview
Vermont has a four-bracket progressive income tax with a top rate of 8.75%, among the highest in the nation. The state closely conforms to the federal tax code and uses the federal standard deduction as its starting point. Vermont has relatively high property taxes and a 6% sales tax, contributing to an overall high tax burden.
Vermont Tax Quick Facts (2026)
| Income Tax | progressive (top rate: 8.8%) |
| Sales Tax (State) | 6.00% |
| Property Tax (Avg Effective) | 1.83% |
| Median Household Income | $74,014 |
| Capital | Montpelier |
| Population | 0.6 million |
Vermont Income Tax Brackets (2026)
| Income Range | Tax Rate |
|---|---|
| $0 — $45,400 | 3.55% |
| $45,400 — $110,050 | 6.80% |
| $110,050 — $229,550 | 7.80% |
| $229,550+ | 8.75% |
Frequently Asked Questions About Vermont Taxes
Does Vermont have a state income tax?+
Yes, Vermont has a progressive income tax system with a top marginal rate of 8.8%.
What is the property tax rate in Vermont?+
The average effective property tax rate in Vermont is approximately 1.83% of assessed home value. On a $300,000 home, that is about $5,490 per year.
What is the sales tax rate in Vermont?+
The state sales tax rate in Vermont is 6.00%. Local jurisdictions may add additional sales tax.
What is the median household income in Vermont?+
The median household income in Vermont is approximately $74,014 per year.
How does Vermont's tax burden compare to other states?+
Vermont's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.