Vermont Income Tax Guide for 2025

Overview

Vermont uses a progressive income tax system with rates ranging from 3.35% to 8.75%. Capital gains are taxed as ordinary income. The state offers a standard deduction of $7,650 for single filers, personal exemptions of $5,300, and dependent exemptions of $5,300.

Income Tax Rates

Single Filers

Income Range	Tax Rate
Up to $49,399	3.35%
$49,400 - $119,699	6.6%
$119,700 - $249,699	7.6%
$249,700+	8.75%

Married Filing Jointly

Income Range	Tax Rate
Up to $82,499	3.35%
$82,500 - $199,449	6.6%
$199,450 - $303,999	7.6%
$304,000+	8.75%

Capital Gains Tax

Capital gains are taxed at the same rates as ordinary income.

Deductions & Exemptions

Type	Amount
Standard Deduction (Single)	$7,650
Standard Deduction (Married Filing Jointly)	$15,300
Personal Exemption (Single)	$5,300
Personal Exemption (Married)	$10,600
Dependent Exemption	$5,300

Additional Information

Capital gains exclusions: $350,000 percentage cap, $5,000 flat
Vermont has its own standard deduction ($7,650 single / $15,300 married filing jointly for 2025), plus $1,250 for each federal age-65-or-blind box, and its own personal exemption of $5,300 per exemption; both are indexed annually
For federal AGI over $150,000 the Vermont tax is at least 3% of federal AGI less interest from U.S. obligations

Charts

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Sources

The 2025 figures for Vermont on this page were compiled from the following official government publications:

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Last updated: September 15, 2026

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