How to Calculate 2022 Vermont State Income Tax by Using State Income Tax Table

1. Find your income exemptions 2. Find your pretax deductions, including 401K, flexible account contributions ... 3. Find your gross income 4. Check the 2022 Vermont state tax rate and the rules to calculate state income tax 5. Calculate your state income tax step by step 6. If you want to simplify payroll tax calculations, you can downloadezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed. Learn more about the in house payroll tax solution for Vermont small businesses here.

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Vermont State Tax Tables

Tax rate used in calculating Vermont state tax for year 2022

Withholding Formula >(Vermont Effective 2022)<

1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
   
   
2. 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.
   
   
3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
   
   
4. Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
   
   
5. Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute taxable income:

Exemption Allowance = >$4,500< x Number of Exemptions

6. 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	$ 3,250	$ 0.00	plus	0.00%	$ 0
3,250	>45,400	0.00	plus	3.35%	3,250
45,400	105,450	>1,412.03	plus	6.60%	45,400
105,450	216,400	5,375.33	plus	7.60%	105,450
216,400	and over	13,807.53	plus	8.75%	216,400




Married
If the Amount of Taxable Income Is:		The Amount of Vermont Tax Withholding Should Be:
Over:	But Not Over:				Of Excess Over:
$ 0	$ 9,788	$ 0.00	plus	0.00%	$ 0
9,788	>80,238	0.00	plus	3.35%	9,788
80,238	180,088	>2,360.08	plus	6.60%	80,238
180,088	269,288	8,950.18	plus	7.60%	180,088
269,288	and over	15,729.38	plus	8.75%	269,288



7. 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.
   
   
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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