Vermont Paycheck Calculator (2026)

Relief arrives on two separate lines in Vermont, which almost no other state does, and it changes the arithmetic enough to be worth stating plainly. Vermont grants a standard deduction and a personal exemption, and Form IN-111 subtracts both before the rate schedule is ever walked. Most states pick one or the other. A single filer takes $7,650 on the deduction line and $5,400 on the exemption line, and the exemption is per person: the taxpayer, a spouse, and each dependent all claim the same $5,400, with nothing phasing out at any income. It is the largest per-person exemption of any state in this calculator. Stacked together, those two lines remove more than $7,650 from a single filer's base before Vermont's four rates, running from 3.35% up to 8.75%, touch a dollar of it. The exemption on its own is worth about $356 a year at $85,000, because the income it shields would otherwise be taxed in the 6.6% band. A couple claims $10,800 of exemption above the joint deduction, and a family of four claims $21,600. Beyond the income tax, the state runs no disability-insurance program, no paid-leave deduction, and no town wage tax in Burlington, Montpelier, Rutland or anywhere else, so the state line plus federal tax and FICA is the entire pay stub. At $85,000 single, federal income tax lands at $9,870, state income tax at $3,099, FICA at $6,503, and take-home at $65,528, an effective total rate of 22.91%.