Tax rate used in calculating Vermont state tax for year 2016State Abbreviation: | VT | State Tax Withholding State Code: | 50 | Acceptable Exemption Form: | W-4VT | Basis For Withholding: | Federal or State Exemptions | Acceptable Exemption Data: | S or M/Number of Exemptions | TSP Deferred: | Yes | Special Coding: | None | Additional Information: | If a state income tax certificate has not been processed or if a valid state exemption code is not present, the Federal exemptions will be used in the computation of state tax. Additional withholdings will be held at 27 percent of the Federal tax withheld and added to the state tax withholdings. |
Withholding Formula >(Vermont Effective 2016)<- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute taxable income:
Exemption Allowance = >$4,000< x Number of Exemptions - Apply the taxable income computed in step 5 to the following table to determine the annual Vermont tax withholding:
Tax Withholding Table
Single | If the Amount of
Taxable Income Is: | The Amount of Vermont
Tax Withholding Should Be: | Over: | But Not
Over: | | | | Of Excess Over: | | $ 0 | $ 2,650 | $ 0.00 | plus | 0.00% | $ 0 | | 2,650 | >39,900 | 0.00 | plus | 3.55% | 2,650 | | 39,900 | 93,400 | >1,322.38 | plus | 6.80% | 39,900 | | 93,400 | 192,400 | 4,960.38 | plus | 7.80% | 93,400 | | 192,400 | 415,600 | 12,682.38 | plus | 8.80% | 192,400 | | 415,600< | and over | 32,323.98 | plus | 8.95% | 415,600< | | | | | | |
Married | If the Amount of
Taxable Income Is: | The Amount of Vermont
Tax Withholding Should Be: |
Over:
| But Not
Over: | | | | Of Excess
Over: | | $ 0 | $ 8,000 | $ 0.00 | plus | 0.00% | $ 0 | | 8,000 | >69,900 | 0.00 | plus | 3.55% | 8,000 | | 69,900 | 160,450 | >2,197.45 | plus | 6.80% | 69,900 | | 160,450 | 240,000 | 8,354.85 | plus | 7.80% | 160,450 | | 240,000 | 421,900 | 14,559.75 | plus | 8.80% | 240,000 | | 421,900 < | and over | 30,566.95 | plus | 8.95% | 421,900 < |
- Divide the annual tax withholding by 26 to obtain the biweekly Vermont tax withholding. If Federal exemptions were used and there are additional withholdings, proceed to step 8.
- If additional Federal tax was withheld, multiply the additional amount by 26 percent and add that to the result of step 7 to obtain the biweekly Vermont tax withholding.
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in house payroll tax solution for Vermont small businesses here.
