Vermont individual income tax
Vermont charges an individual income tax on the earnings of residents and nonresidents within the state. This tax is calculated based on the individual's federal-adjusted gross income, with rates ranging from 3.35% to 8.75%.
April 18
Return due in 2023
8.75%
Top marginal tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit MyVTax
What is Vermont income tax?
Individual income tax
Individual income tax is a type of direct tax levied by Vermont on individuals that meet the taxable criteria.
Taxable incomes
Vermont taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
Vermont has 4 individual income tax brackets from 3.35% to 8.75%.
Standard deduction
Standard deduction is $6,500 for single filers, $9,800 for head of household and $13,050 for married filing jointly for the year 2022.
Personal exemption
Personal exemption is $4,500 for the year 2022.
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| Vermont taxable income | Tax rate |
|---|---|
| $0 - $42,150 | 3.35% |
| $42,150 - $102,200 | 6.6% |
| $102,200 - $213,150 | 7.6% |
| $213,150+ | 8.75% |
Individual income tax
The State of Vermont requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from Vermont
Types of taxable incomes
The income types on which tax is levied are:
In Vermont, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in Vermont, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
File returning using form Form IN-111, Vermont Individual Income Tax Return
Returns
To get a 6-months extension in filing returns, file form IN-151.
Extension
Filing extension doesn't give an extension in paying taxes. Taxes should be paid by deadline to avoid penalities.
Due
quarterly or annually
Pay taxes
Taxes in Vermont are due by 18 April, 2023. Go to the official Vermont Department of Taxes' website.
You are required to pay quarterly estimated taxes in Vermont, if your income isn't being withheld or at least 90% tax isn't withheld..
Estimated taxes are to be made quarterly in instalments by the 15th of April, June, September, and January.
Total amount to be paid as estimated tax, is either 100% of last year's liability or 90% of current year's liability.
Type of tax
graduated tax
Due
quarterly or annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Residency
Residency in Vermont refers to an individual's permanent home or place of residence in the state.
Vermont resident
A Vermont resident is someone who is domiciled in Vermont, or who maintains a permanent place of residence in the state for more than 183 days of the year.
Vermont part-year resident
A Vermont Part-Year Resident is someone who moved into or out of the state during the tax year.
Income earned while the individual was a resident of Vermont is subject to state taxes.
Vermont non-resident
A Vermont Nonresident is someone who does not have a permanent residence in the state.
Nonresidents who receive income from Vermont sources are required to pay Vermont taxes.
Frequently asked questions
Business entities in Vermont
There are several business entities in Vermont
Vermont LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time