Vermont Income Tax Guide for 2026

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 $7,850 for single filers, personal exemptions of $5,400, and dependent exemptions of $5,400.

Income Tax Rates

Single Filers

Income Range	Tax Rate
Up to $50,749	3.35%
$50,750 - $122,849	6.6%
$122,850 - $256,299	7.6%
$256,300+	8.75%

Married Filing Jointly

Income Range	Tax Rate
Up to $84,699	3.35%
$84,700 - $204,749	6.6%
$204,750 - $312,049	7.6%
$312,050+	8.75%

Capital Gains Tax

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

Deductions & Exemptions

Type	Amount
Standard Deduction (Single)	$7,850
Standard Deduction (Married Filing Jointly)	$15,700
Personal Exemption (Single)	$5,400
Personal Exemption (Married)	$10,800
Dependent Exemption	$5,400

Additional Information

Capital gains exclusions: $350,000 percentage cap, $5,000 flat
Vermont has its own standard deduction and personal exemption, both indexed annually; 2026 brackets, standard deduction and exemption are derived from the 2026 withholding tables (GB-1210) pending publication of the 2026 Rate Schedules
For AGI over $150,000 the tax is at least 3% of AGI less U.S. obligation interest

Charts

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Sources

The 2026 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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