No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Friday, October 3, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home IRS & Taxes

Vermont State Income Tax Guide

by TheAdviserMagazine
6 months ago
in IRS & Taxes
Reading Time: 5 mins read
A A
Vermont State Income Tax Guide
Share on FacebookShare on TwitterShare on LInkedIn


Vermont’s state income tax uses a progressive structure with four tax brackets, ranging from 3.35% to 8.75% for the 2024 tax year (the taxes due in 2025).  

The amount you owe depends on your taxable income, which is calculated by applying deductions and exemptions to your federal adjusted gross income (AGI). Factors like filing status, total earnings, and specific Vermont credits and deductions can change the amount of taxes you owe.  

Whether you’re a full-time resident, part-time resident, or nonresident with Vermont income, understanding how these elements come together will help you confidently navigate your tax responsibilities.

*Note that you are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses state-specific taxes only. 

Vermont state income tax rates

Vermont’s state income tax system includes four tax brackets: 

3.35% 

6.6% 

7.6% 

8.75% 

The rate you pay is based on your taxable income and filing status, such as single, married filing jointly, or head of household.  

Vermont state taxes are due by April 15, 2025—the same as the federal tax deadline. Filing your taxes on time helps you avoid penalties and interest on any unpaid taxes. 

The following sections include easy-to-read charts that break down Vermont’s tax brackets and rates by filing status, helping you understand where your income fits and what you may owe.

Single

Taxable income Tax rate $0 to $47,900 $0 + 3.35% of the amount over $0 $47,901 to $75,000 $1,605 + 6.6% of the amount over $47,900 $75,001 to $116,000 $3,393 + 6.6% of the amount over $75,000 $116,001 to $242,000 $6,099 + 7.6% of the amount over $116,000 Over $242,000 $15,675 + 8.75% of the amount over $242,000 

Married/civil union filing separately

Taxable income Tax rate $0 to $39,975 $0 + 3.35% of the amount over $0 $39,976 to $75,000 $1,339 + 6.6% of the amount over $39,975 $75,001 to $96,650 $3,651 + 6.6% of the amount over $75,000 $96,651 to $147,300 $5,080 + 7.6% of the amount over $96,650 Over $147,300 $8,929 + 8.75% of the amount over $147,300 

Married/civil union filing jointly

Taxable income Tax rate $0 to $75,000 $0 + 3.35% of the amount over $0 $75,001 to $79,950 $2,513 + 3.35% of the amount over $75,000 $79,951 to $193,300 $2,678 + 6.6% of the amount over $79,950 $193,301 to $294,600 $10,159 + 7.6% of the amount over $193,300 Over $294,600 $17,858 + 8.75% of the amount over $294,600 

Head of household

Taxable income Tax rate $0 to $64,200 $0 + 3.35% of the amount over $0 $64,201 to $75,000 $2,151 + 6.6% of the amount over $64,200 $75,001 to $165,700 $2,864 + 6.6% of the amount over $75,000 $165,701 to $268,300 $8,850 + 7.6% of the amount over $165,700 Over $268,300 $16,647 + 8.75% of the amount over $268,300 

Source: Vermont Department of Taxes

Who has to file Vermont state income tax?

You must file a Vermont state income tax return if you: 

Are a full-year resident and meet federal filing requirements. 

Are a part-year resident with income earned in Vermont or from Vermont sources. 

Are a nonresident who earned more than $1,000 from Vermont sources.

Filed a federal income tax return.

Earned or received more than $100 of Vermont income. 

Even if you don’t meet these thresholds, you may benefit from filing to claim a refund or certain Vermont tax credits. Filing also ensures compliance and avoids potential penalties.

How Vermont residency impacts tax filing

Vermont has three residency statuses for tax purposes: resident, part-year resident, and nonresident. Your residency status determines how much of your income is taxed by Vermont and which tax forms you need to file. 

The chart below breaks down each status and how it affects your Vermont state taxes. 

Residency status Definition How Vermont taxes Income Resident Lived in Vermont for the entire tax year or made Vermont your permanent home. Taxes all income, regardless of where it’s earned.  Part-year resident Lived in Vermont for part of the year or moved into or out of the state. Taxes income earned during residency and Vermont-sourced income.  Nonresident Lived outside Vermont but earned more than $1,000 from Vermont sources. Taxes only Vermont-sourced income (such as rent from a property located in Vermont).  

Other income tax considerations in Vermont

Vermont taxes different types of income based on factors like income source and any applicable exemptions. Let’s look at a few considerations for different income types: 

Retirement and pension income tax: You can exclude the first $10,000 of certain retirement income. Taxpayers can claim only one of the following exemptions: Social Security, military retirement, civil service, or other retirement systems. 

Investment income tax: You can exclude part of your net capital gains from taxable income with a flat or percentage exclusion. 

Social Security income tax: You can reduce or eliminate Vermont tax on federally taxable benefits if you earn less than $75,000 as a joint filer, or $60,000 for other statuses. 

Military income tax: Full-time active-duty pay is exempt from Vermont income tax when the pay is earned outside of Vermont. Other income may be taxable. Servicemembers living in Vermont due to orders are considered nonresidents for tax purposes. 

Vermont also imposes an estate tax on estates exceeding the federal filing threshold. The threshold for Vermont estate tax is $5 million.

Talk to a tax expert for free

Do you have tax questions? Get answers from one of our tax experts. Experts available 5am – 8pm PST – 7 days a week

Common Vermont state tax deductions and credits

Vermont offers several tax deductions and credits to provide financial relief and encourage investments in families, education, and the community. Below are some key deductions and credits available for Vermont taxpayers. 

Tax credit Description Amount Vermont Charitable Contribution Tax Credit 5% credit on the first $20,000 in eligible charitable contributions. Up to $1,000. Charitable Housing Investment Tax Credit (HITC) Encourages investments in housing charities; credit is the difference between actual and charitable interest income. Limited to 3% of the average principal balance of investment during the year, with a $5 million annual cap on total charitable investments. Vermont Child Tax Credit Financial support for families with young children. $1,000 per eligible child. Vermont Child and Dependent Care Credit Credit is a percentage of the federal Child and Dependent Care Tax Credit. 72% of the federal credit; maximum federal credit for 2024 tax year is $6,000. Vermont Earned Income Tax Credit (EITC) For low- to moderate-income working individuals and families. 38% of the federal EITC; maximum federal credit for 2024 tax year is $7,830. Elderly or Permanently Disabled Tax Credit Support for seniors and disabled individuals with limited retirement or disability income. 24% of the federal credit; maximum federal credit for 2024 tax year is $7,500. Vermont Farm Income Averaging Credit Stabilizes farm income by averaging farm profits over years. 24% of the federal credit; federal credit varies based on individual circumstances. Vermont Higher Education Investment Plan (VHEIP) or Vermont 529 (VT529) Plan Encourages saving for education expenses through eligible accounts. 10% of the first $2,500 per taxpayer per beneficiary. 

How to file Vermont state income tax

Filing your Vermont taxes doesn’t have to be a chore. With TurboTax, you’ll get the guidance and tools to make it seamless. 

TurboTax is designed to help you find every deduction and credit Vermont offers, whether you’re filing on your own or prefer expert support. Need personalized help? TurboTax professionals are ready to provide tailored advice or handle your filing from start to finish. 

We make sure your taxes are accurate, your refund is maximized, and your experience is stress-free.



Source link

Tags: GuideIncomestatetaxVermont
ShareTweetShare
Previous Post

PTSD Isn’t Always Loud—Sometimes It Looks Like the ‘Perfect’ Partner

Next Post

Markets might be celebrating but every single portfolio manager is trying to figure out how long the roller coaster will last

Related Posts

edit post
Do I Need to Adjust ESPP Cost Basis from Form 1099-B?

Do I Need to Adjust ESPP Cost Basis from Form 1099-B?

by TheAdviserMagazine
October 2, 2025
0

At a glance: Stock options and ESPP plans generate income in two categories: ordinary income and capital gains or losses....

edit post
How to Create a Legacy Plan for Real Estate Investors |

How to Create a Legacy Plan for Real Estate Investors |

by TheAdviserMagazine
October 2, 2025
0

When most people hear the words estate planning or legacy plan, they think about wills, probate court, and taxes. But...

edit post
What’s New at Canopy: Fall 2025

What’s New at Canopy: Fall 2025

by TheAdviserMagazine
October 2, 2025
0

The Past 6 Months Over the past six months, we’ve been focused on unclunking firm workflows, simplifying client engagement, and...

edit post
2026 Tax Calculator | One Big Beautiful Bill Tax Calculator

2026 Tax Calculator | One Big Beautiful Bill Tax Calculator

by TheAdviserMagazine
October 1, 2025
0

This summer, Congress passed the One Big Beautiful Bill Act (OBBBA) into law, which made the largest set of federal...

edit post
How to Claim a Home Office Without Triggering an Audit 

How to Claim a Home Office Without Triggering an Audit 

by TheAdviserMagazine
October 1, 2025
0

Key Takeaways   The home office deduction does not automatically trigger an IRS audit if you qualify and follow the...

edit post
Why Did the IRS Reject My Tax Return?

Why Did the IRS Reject My Tax Return?

by TheAdviserMagazine
October 1, 2025
0

The IRS rejecting your tax return can be a scary thing. Thankfully, it’s usually nothing to be overly concerned about....

Next Post
edit post
Markets might be celebrating but every single portfolio manager is trying to figure out how long the roller coaster will last

Markets might be celebrating but every single portfolio manager is trying to figure out how long the roller coaster will last

edit post
US Senate Confirms Pro-Crypto Paul Atkins As SEC Chair

US Senate Confirms Pro-Crypto Paul Atkins As SEC Chair

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Tips to Apply for Mental Health SSDI Without Therapy

Tips to Apply for Mental Health SSDI Without Therapy

September 19, 2025
edit post
The job market slowdown is hitting recent college grads hard

The job market slowdown is hitting recent college grads hard

0
edit post
‘Upctober’ Ignites Crypto Frenzy: Bitcoin Flirts With 4K, BNB Breaks Records

‘Upctober’ Ignites Crypto Frenzy: Bitcoin Flirts With $124K, BNB Breaks Records

0
edit post
Now This Common Supplement May Slow Aging, Too

Now This Common Supplement May Slow Aging, Too

0
edit post
When Medicare Doesn’t Cover Your Dental or Vision — What You’ll Pay Out-of-Pocket

When Medicare Doesn’t Cover Your Dental or Vision — What You’ll Pay Out-of-Pocket

0
edit post
Commerce Minister Piyush Goyal drives investment reforms on Singapore visit

Commerce Minister Piyush Goyal drives investment reforms on Singapore visit

0
edit post
Lawsuit: Tesla design trapped a college student inside as it burst into flames

Lawsuit: Tesla design trapped a college student inside as it burst into flames

0
edit post
‘Upctober’ Ignites Crypto Frenzy: Bitcoin Flirts With 4K, BNB Breaks Records

‘Upctober’ Ignites Crypto Frenzy: Bitcoin Flirts With $124K, BNB Breaks Records

October 3, 2025
edit post
Now This Common Supplement May Slow Aging, Too

Now This Common Supplement May Slow Aging, Too

October 3, 2025
edit post
The job market slowdown is hitting recent college grads hard

The job market slowdown is hitting recent college grads hard

October 3, 2025
edit post
Lawsuit: Tesla design trapped a college student inside as it burst into flames

Lawsuit: Tesla design trapped a college student inside as it burst into flames

October 3, 2025
edit post
Chicago Fed President Goolsbee ‘a little wary’ about cutting interest rates too quickly

Chicago Fed President Goolsbee ‘a little wary’ about cutting interest rates too quickly

October 3, 2025
edit post
When Medicare Doesn’t Cover Your Dental or Vision — What You’ll Pay Out-of-Pocket

When Medicare Doesn’t Cover Your Dental or Vision — What You’ll Pay Out-of-Pocket

October 3, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • ‘Upctober’ Ignites Crypto Frenzy: Bitcoin Flirts With $124K, BNB Breaks Records
  • Now This Common Supplement May Slow Aging, Too
  • The job market slowdown is hitting recent college grads hard
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.