Comprehensive statutory analysis of Vermont individual income tax rates, Department of Revenue filing forms, extension guidelines, telecommuting sourcing rules, and pass-through entity tax provisions.
Primary Resident FormForm IN-111 (Vermont Income Tax Return)
Nonresident FormSchedule IN-113 (Income Adjustment for Nonresidents)
Convenience of Employer RuleNo
Reciprocity AgreementsNone
Community Property StateCommon Law
State Estate/Inheritance TaxNone (Federal Only)
QSBS IRC § 1202 ConformityState Specific / Under Review
Marginal Rate Ladder: Vermont
Source: Tax Foundation — State Individual Income Tax Rates and Brackets, 2026 (retrieved 2026-08-09). Ranks Vermont against all 51 jurisdictions.
2026 Legislative & Statutory Highlights
Vermont operates a progressive 4-bracket income tax with a top marginal rate of 8.75%. Vermont uses federal taxable income as its computational starting point and provides state standard deductions mirroring federal thresholds.
Vermont operates a graduated personal income tax schedule with marginal brackets reaching up to 8.8%. Tax parameters are indexed annually or enacted through state legislative sessions. Taxpayers should ensure that adjustments for federal bonus depreciation, Section 179 expensing, and Net Operating Loss (NOL) carryforwards follow Vermont's specific rolling or static Internal Revenue Code conformity date.
Filing Forms, Deadlines & Extension Guidelines
Full-Year Resident ReturnForm IN-111 (Vermont Income Tax Return)
Nonresident / Part-Year ReturnSchedule IN-113 (Income Adjustment for Nonresidents)
Statutory Filing Calendar & Extension Provisions:Automatic 6-month extension to October 15 via Form IN-151, provided payment is made by April 15.
Vermont taxes residents on all income. Nonresidents performing services inside Vermont are taxed on Vermont-source wages.
Cross-Border Tax Credits:If you are an Vermont resident earning wages in another state that also levies income tax, Vermont generally permits a resident credit for taxes paid to other jurisdictions (subject to statutory percentage limitations) to avoid unconstitutional double taxation.
Pass-Through Entity (PTE) Tax & Small Business Rules
Vermont enacted an elective Pass-Through Entity Tax (Act 148) at 8.75%, allowing partnerships and S-corps to pay tax at the entity level.
Estate & Inheritance Tax
Vermont levies a state estate tax with an exemption threshold of $5,000,000 and a flat tax rate of 16.0% on the excess.
Local & County Taxes
Vermont municipalities do not levy local personal income taxes on wages.
Worked Tax Example: $120,000 W-2 Earner in Vermont
A single filer in Burlington earning $120,000 pays approximately $6,780 in Vermont state income tax across the progressive brackets, an effective rate of 5.65%.
Gross W-2 Wages$120,000
Est. State Tax$6,780
Effective State Rate5.65%
Calculate Your 2026 Vermont Tax Liability
Enter your taxable income, filing status, and municipal details below to calculate your customized state tax liability and print your executive summary.
Structure
graduated
Top rate
8.8%
State tax
$3,805
Eff. rate (state+local)
4.8%
Graduated system, top rate 8.75%. 2026 brackets — verify against VT DOR. Vermont has no estate tax. Not a community property state.
⚠ Some figures for this state are not yet fully verified — confirm with the state Department of Revenue before relying on them.
Official Executive Tax Dossier · Form 1040 Statutory Mapping
2026 Executive Vermont State Tax Audit Summary
STATUTORY SEAL:FT-2026-IRS-5081F4D3IRS Rev. Proc. 2025-32 Verified
Gross Income$80,000
Taxable Income$80,000
Total Combined Tax$3,805
Effective Total Rate4.8%
Statutory Governing Authority: Vermont Department of Revenue Statutory Tax Code · Top Marginal Rate: 8.8% · Tax Foundation 2026 State Tax Rates & Brackets Report
Not tax, legal, or financial advice
FiscTalk provides general educational information from public sources. Your tax results depend on the full set of facts, your filing history, and the jurisdiction-specific rules that shift yearly. Before filing or making decisions, consult a licensed CPA, EA, or attorney. FiscTalk is not a fiduciary and is not affiliated with the IRS or any state agency.
Does Vermont have a state personal income tax in 2026?
Yes. Vermont operates a graduated personal income tax schedule with marginal brackets reaching up to 8.8%. Taxpayers must file an annual return if gross income exceeds statutory filing thresholds.
What is the 2026 individual income tax filing deadline for Vermont?
The regular filing deadline for Vermont individual income tax returns is April 15, 2026. Taxpayers seeking an extension may receive up to 6 additional months to file, but any tentative tax due must be paid by the original deadline to prevent late-payment interest and statutory penalties.
How does Vermont treat remote workers and telecommuters?
Vermont taxes residents on all income. Nonresidents performing services inside Vermont are taxed on Vermont-source wages.
Can small business owners in Vermont bypass the federal $10,000 SALT cap?
Vermont enacted an elective Pass-Through Entity Tax (Act 148) at 8.75%, allowing partnerships and S-corps to pay tax at the entity level.
Does Vermont impose a separate estate or inheritance tax?
Vermont levies a state estate tax with an exemption threshold of $5,000,000 and a flat tax rate of 16.0% on the excess.
Source-verified — not professional advice
Every figure on this page is checked in-house against its primary source — IRS revenue procedures and publications, state Departments of Revenue, and the text of the underlying statute — before publication. Last reviewed 2026-10-20. The full source list is at the bottom of this page. If you spot an error, see our corrections & standards policy.
Not tax, legal, or financial advice
FiscTalk provides general educational information from public sources. Your tax results depend on the full set of facts, your filing history, and the jurisdiction-specific rules that shift yearly. Before filing or making decisions, consult a licensed CPA, EA, or attorney. FiscTalk is not a fiduciary and is not affiliated with the IRS or any state agency.