December, 17th 2025
Each state has unique income tax withholding rules. Below are Vermont's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.
Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates .
Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.
| State 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. |
| Official State Tax Website | Visit Official Website |
Vermont's W-4VT uses allowances based on personal exemptions. Typically, 1 for the employee, 1 for a spouse (if filing jointly), and 1 per dependent. Vermont also allows an additional allowance if the employee or spouse is 65 or over or blind (mirroring the federal concept - these were part of VT's personal exemption rules pre-2018). Filing status itself (single vs married) may change the tax rate but not the count of allowances (aside from how spouses split them).
| Component | Allowances | Notes |
|---|---|---|
| Yourself | 1 allowance | Base allowance |
| Spouse | 1 allowance | If filing jointly |
| Each Dependent | 1 allowance | Per dependent |
| Age 65+ (Employee or Spouse) | 1 allowance each | Additional allowance if 65 or over |
| Blind (Employee or Spouse) | 1 allowance each | Additional allowance if blind |
Total Allowances = Yourself + Spouse + Dependents + Age/Blind Allowances
Filing status itself (single vs married) may change the tax rate but not the count of allowances (aside from how spouses split them).
For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.
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 = $5,300 × Number of Exemptions
Apply the taxable income computed in step 5 to the tax withholding table (Single or Married) to determine the annual Vermont tax withholding.
Divide the annual Vermont tax withholding by 26 to obtain the biweekly Vermont tax withholding.
Add additional withholdings at 27 percent of the Federal tax withheld to the state tax withholdings.
Want to calculate in an easier way? Learn how to calculate Vermont taxes via ezPaycheck below.
Learn More| Withholding Allowance | Annual Amount |
|---|---|
| 1 | $5,300 |
Formula: $5,300 × Number of Exemptions
Exemption allowance per exemption.
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $3,825 | $0 | + | 0.00% | $0 |
| $3,825 | $53,225 | $0 | + | 3.35% | $3,825 |
| $53,225 | $123,525 | $1,655 | + | 6.60% | $53,225 |
| $123,525 | $253,525 | $6,295 | + | 7.60% | $123,525 |
| $253,525 | and over | $16,175 | + | 8.75% | $253,525 |
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $7,650 | $0 | + | 0.00% | $0 |
| $7,650 | $106,450 | $0 | + | 3.35% | $7,650 |
| $106,450 | $247,050 | $3,310 | + | 6.60% | $106,450 |
| $247,050 | $507,050 | $12,589 | + | 7.60% | $247,050 |
| $507,050 | and over | $32,349 | + | 8.75% | $507,050 |
ezPaycheck simplifies payroll calculations, including Vermont's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
We strive to provide accurate and up-to-date Vermont state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.
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