Use our Vermont Paycheck Calculator to quickly figure out how much you’ll take home after taxes. Just enter your salary, pay frequency, and deductions to get a detailed breakdown of your gross pay, taxes, and net pay in seconds.
How Your Vermont Paycheck is Calculated
Your paycheck represents the amount you take home after taxes and deductions are withheld from your gross pay. The basic formula is:
Gross Pay – (Federal Taxes + State Taxes + Local Taxes + FICA) = Net Pay
Here’s what each part means:
- Gross Pay: The total amount you earn before any taxes or deductions.
- Federal Income Tax: A progressive tax withheld based on your earnings, filing status, and allowances.
- FICA Taxes: These include Social Security and Medicare contributions required from all employees.
- State Income Tax: Vermont’s tax on your earnings.
- Local Taxes: Additional taxes that may apply depending on where you live or work.
A Guide to Vermont State Payroll Taxes
Vermont State Income Tax
Vermont has a progressive state income tax system, meaning higher earners pay a higher rate. For 2025, the Vermont income tax rates are as follows:
| Taxable Income (Single Filers) | Tax Rate |
|---|---|
| Up to $46,100 | 3.35% |
| $46,101 – $111,550 | 6.6% |
| $111,551 – $243,750 | 7.6% |
| Over $243,750 | 8.75% |
For married couples filing jointly, the brackets are roughly double these amounts.
Vermont also provides a standard deduction of $14,600 for single filers and $29,200 for joint filers in 2025. Personal exemptions are set at $4,700 per dependent.
State-Specific Programs and Withholdings
Vermont does not have a state disability insurance (SDI) program. However, employers and employees contribute to the state unemployment insurance (SUI) fund. Employees do not directly pay into this fund; it’s covered by employers.
In addition to income tax, Vermont residents may see higher property and sales taxes than some other states. These help fund local services and public programs.
Understanding Federal and FICA Taxes
Federal and FICA taxes are applied uniformly across the United States. They make up a significant portion of most paychecks.
For 2025, FICA tax rates are:
- Social Security Tax: 6.2% of wages up to $168,600
- Medicare Tax: 1.45% of all wages
- Additional Medicare Tax: 0.9% on wages above $200,000 for single filers
Federal income tax is based on a progressive system, where higher income brackets pay higher rates. The amount withheld depends on your earnings, filing status, and dependents.
Local Taxes in Vermont
Most areas in Vermont do not impose local income taxes. However, some cities and towns levy local option taxes on sales, meals, or lodging. Residents in Burlington, South Burlington, and Rutland may see these taxes applied at the local level, but they don’t directly affect paycheck withholdings.
Frequently Asked Questions (FAQs) About Vermont Paychecks
What is the minimum wage in Vermont?
The minimum wage in Vermont is $13.67 per hour in 2025. This rate is adjusted annually to reflect inflation.
How often are paydays in Vermont?
Employers in Vermont must pay employees at least once every week. However, bi-weekly and semi-monthly pay schedules are common.
What is the Vermont state tax rate for 2025?
Vermont has a progressive tax structure with rates ranging from 3.35% to 8.75% for 2025, depending on income level and filing status.
Are 1099 contractors subject to Vermont taxes?
Yes, independent contractors in Vermont must pay both state and federal income taxes on their earnings, as well as self-employment tax for Social Security and Medicare.
What are the overtime laws in Vermont?
Vermont follows the federal overtime rule under the Fair Labor Standards Act (FLSA). Nonexempt employees must be paid 1.5 times their regular hourly rate for hours worked over 40 in a week.
Disclaimer
The Vermont Paycheck Calculator provides estimates based on 2025 tax data and standard payroll assumptions. Actual take-home pay may vary depending on your income, benefits, withholdings, and filing status. For specific tax or financial advice, please consult a licensed professional.
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