Vermont Income Tax Calculator
Understanding Vermont Taxes (2024)
Calculating your Vermont taxes involves state, federal, and FICA taxes. This calculator helps you estimate your take-home pay by considering these key components.
Vermont Income Tax Structure
Vermont has a progressive income tax system with five tax brackets ranging from 3.35% to 8.75% for 2024. Vermont uses the same tax brackets for all filing statuses and generally follows federal tax guidelines for deductions.
2024 Vermont Tax Brackets (all filing statuses):
- 3.35% on income between $0 and $43,750
- 5.2% on income between $43,751 and $105,950
- 6.4% on income between $105,951 and $218,000
- 6.6% on income between $218,001 and $262,400
- 8.75% on income over $262,401
Vermont Deductions and Exemptions
For 2024, Vermont follows the federal standard deduction amounts:
- Single: $13,850
- Married Filing Jointly: $27,700
- Head of Household: $20,800
- Married Filing Separately: $13,850
Vermont also provides a personal exemption of $4,700 for each taxpayer and dependent.
Vermont Tax Credits
Vermont offers several tax credits, including:
- Earned Income Tax Credit: 38% of the federal EITC
- Child and Dependent Care Expenses Credit: Provides a credit for qualifying childcare expenses
- Credit for Income Taxes Paid to Another State: For Vermont residents who earn income in and pay taxes to other states
Federal Income Tax
Federal income tax is based on federal tax brackets, your filing status, deductions, and W-4 allowances. Pre-tax deductions like 401(k) or HSA contributions reduce your federal taxable income.
FICA Taxes
FICA taxes fund Social Security and Medicare.
- Social Security: 6.2% on income up to $168,600 for 2024.
- Medicare: 1.45% on all income, with an additional 0.9% on income above certain thresholds.
Other Vermont Taxes
- Sales Tax: Vermont has a 6% state sales tax rate. An additional 1% local option tax may apply in some areas, bringing the total to 7%.
- Property Tax: Property taxes in Vermont are a significant source of funding for local services and schools. Rates vary by municipality and property type.
- No Estate or Inheritance Tax: Vermont does not impose its own estate or inheritance tax.
Disclaimer: This information is for general guidance for the 2024 tax year and is not tax advice. Consult a tax professional for personalized advice.