Vermont Paystub Generator - 4 Brackets to 8.75%, $10K Remote Worker Grant, SS Partially Taxed, Free Preview
Last updated: | ePaystubs Editorial Team
Vermont is a paradox. It has one of the highest combined tax burdens in America: an 8.75% top income tax rate and the 3rd highest property tax (~1.51%). And yet Vermont is the only state in the country that will pay you $10,000 to move there. The New Arrivals remote worker grant gives $5,000/year for two years to new residents who work remotely for out-of-state employers. Per CountryTaxCalc (2026): "$10,000 grant (paid over 2 years) for eligible new Vermont residents who work remotely for out-of-state employers."
Your Vermont pay stub has four deduction lines: federal income tax, Social Security, Medicare, and Vermont state tax at the applicable progressive rate. No local income tax anywhere in the state. Per Paylocity (January 2026): no SDI and no PFML payroll deductions. The stub is simpler than you'd expect for a high-tax state.
Our Vermont paystub generator applies the correct 2026 progressive brackets (3.35% to 8.75%) and calculates all federal deductions. Two minutes. No signup. Free preview.
Works for employees, contractors, and small business owners across Burlington, South Burlington, Montpelier, Essex Junction, Rutland, Bennington, Brattleboro, St. Albans, and all of Vermont.
| State Income Tax | Progressive, 4 brackets: 3.35%, 6.60%, 7.60%, 8.75% |
| Local Income Tax | None anywhere in Vermont |
| Stub Lines | 4: Federal, Social Security, Medicare, VT State |
| Remote Worker Grant | $10,000 over 2 years for new residents (New Arrivals program) |
| Social Security | Exempt under ~$50K single / ~$65K MFJ. Taxed above. |
| Property Tax | ~1.51% avg (3rd highest in US). Varies widely by town. |
| SDI / PFML | None |
| Minimum Wage | $14.42/hr (CPI-indexed, Jan 1, 2026). Tipped: $7.21 (50% rule). |
| Withholding Form | W-4VT (separate Vermont form required) |
| Estate Tax | $5 million threshold (per AARP) |
"We moved from Brooklyn to Stowe three years ago. I work remotely for my NYC agency. Vermont gave us $10,000 through the New Arrivals grant, which offset about 90% of my state income tax for the first two years. Now that the grant is done, yes, I pay the 6.6% bracket rate on most of my income. But our mortgage is a third of what we paid in rent, and our kids ski every weekend from November through April."
"I live in White River Junction and my coworker lives in Lebanon, New Hampshire. We work at the same hospital. Same job, same pay. He pays zero state income tax. I pay about $350 a month to Vermont. We've had this conversation more times than I can count."
Vermont's 4 Tax Brackets for 2026 (3.35% to 8.75%, Some Sources Say 5)
Vermont uses a progressive income tax with rates that climb as income increases. For 2026, the brackets look like this for single filers:
| VT Taxable Income | Rate |
|---|---|
| $0 to ~$45,400 | 3.35% |
| ~$45,400 to ~$110,050 | 6.60% |
| ~$110,050 to ~$229,550 | 7.60% |
| Over ~$229,550 | 8.75% |
Married filing jointly brackets are roughly double these thresholds. Vermont follows the federal standard deduction (~$16,100 single, ~$32,200 MFJ for 2026) and indexes brackets to inflation annually.
Why Some Sources Say 5 Brackets Instead of 4
You'll find some tools saying Vermont has 4 brackets and others saying 5. The difference comes down to whether you count the 0% bracket at the very bottom (below ~$3,825 single / ~$11,475 MFJ, where income falls below the filing threshold and no tax is owed). CountryTaxCalc, OnPay, and ThePayStubs say 4 brackets. SmartAsset, KDAInc, and AARP say 5. Either way, the actual rates are the same: 3.35%, 6.60%, 7.60%, and 8.75%.
The top-bracket threshold also varies across sources ($204,001 vs. $229,550 vs. $253,525 for single filers) because Vermont indexes brackets to inflation annually. The VT Department of Taxes withholding tables are the definitive source for the exact 2026 thresholds.
Per CountryTaxCalc's VT Calculator: "A $75,000 earner pays approximately $2,412 in state income tax (3.2% effective rate)." The effective rate is always lower than the marginal rate because most of your income falls into lower brackets.
The 4-Line Pay Stub: Federal, Social Security, Medicare, Vermont State
Despite the high rates, the Vermont stub is clean. Four mandatory lines: federal income tax, Social Security (6.2%), Medicare (1.45%), and Vermont state income tax at the applicable bracket rate. No local income tax. Per Paylocity: no SDI and no PFML payroll deductions. Vermont does have Earned Sick Time (up to 40 hours/year), but that's an employer mandate, not a payroll tax line on your stub.
Vermont requires a separate Form W-4VT for state withholding, unlike states that use only the federal W-4. When you start a new job in Vermont, you fill out both the federal W-4 and the VT W-4VT.
What Gets Taken Out of a Vermont Paycheck: Two 2026 Examples
Burlington Healthcare Worker, $25/hr, Biweekly
Setup: Jordan works at the UVM Medical Center in Burlington. He earns $25/hr, biweekly, 80 hours, files Single on federal W-4. Annual gross: $52,000. After federal standard deduction (~$16,100): ~$35,900 VT taxable.
| Line Item | Amount |
|---|---|
| Gross Pay (80 hrs x $25.00) | $2,000.00 |
| 1. Federal Income Tax | - $200.00 |
| 2. Social Security, 6.2% | - $124.00 |
| 3. Medicare, 1.45% | - $29.00 |
| 4. VT State Tax (3.35% on most income after credits) | - $46.20 |
| Estimated Net Pay | About $1,601 |
Four lines. VT state tax of $46.20 per biweekly check ($1,201/year). Jordan's effective VT rate is about 2.3% at this income level because most of his taxable income falls in the 3.35% bracket and the Taxpayer Tax Credit reduces the total. A worker earning the same $52,000 in New Hampshire would keep that $1,201 entirely.
Remote Tech Worker (Using VT Grant), $50/hr, Biweekly
Setup: Lisa moved from Austin to Woodstock, VT last year. She works remotely for a Texas-based tech company. She earns $50/hr, biweekly, 80 hours, files Single. Annual gross: $104,000. She qualified for the New Arrivals remote worker grant.
| Line Item | Amount |
|---|---|
| Gross Pay (80 hrs x $50.00) | $4,000.00 |
| 1. Federal Income Tax | - $625.00 |
| 2. Social Security, 6.2% | - $248.00 |
| 3. Medicare, 1.45% | - $58.00 |
| 4. VT State Tax (~5.5% effective across brackets) | - $220.00 |
| Estimated Net Pay | About $2,849 |
Lisa's VT state tax runs about $5,720/year. But the New Arrivals grant gives her $5,000 in year 1 and $5,000 in year 2. That means Vermont's income tax effectively costs her only $720 in the first year and $720 in the second. After year 2, the full $5,720/year kicks in. In Texas, she paid zero state tax. The grant was designed to soften exactly this transition.
Estimates based on 2026 brackets and standard withholding. Actual amounts depend on your federal W-4, VT W-4VT, and voluntary deductions.
The $10,000 Remote Worker Grant: Vermont Is the Only State That Pays You to Move There
Per CountryTaxCalc: "Vermont's New Arrivals program offers up to $10,000 to new Vermont residents who work remotely for out-of-state employers. The grant pays $5,000 in year 1 and $5,000 in year 2."
The requirements are simple. You must be a new Vermont resident (not previously a VT resident). You must move to Vermont and establish your primary home here. You must work remotely for an employer or clients located outside Vermont. The program has been running since 2019 and continues to be funded through 2026 and beyond. No other state offers anything like it.
For remote workers earning $70,000-$100,000, the $10,000 grant essentially covers most of your Vermont income tax for the first two years. At $75,000, your VT state tax is roughly $2,412/year per CountryTaxCalc. The grant gives you $5,000/year, so you come out $2,588 ahead of your tax cost in each of the first two years. After year 2, you're paying the full rate, but by then you've had time to establish whether Vermont's quality of life justifies the tax cost.
Remote workers who establish VT domicile need Vermont-addressed pay stubs for landlord applications, mortgage pre-approval, insurance, and financial transactions. Our generator produces stubs with a Vermont address and the correct progressive tax structure.
Vermont vs. New Hampshire: The Most Tax-Consequential Border in New England
The Connecticut River runs between Vermont and New Hampshire. On the Vermont side: up to 8.75% income tax. On the New Hampshire side: zero income tax. Per CountryTaxCalc's VT Calculator: "A $100,000 earner pays $4,062 in Vermont vs $0 in New Hampshire, a significant $4,062 annual difference."
| Annual Income | Vermont State Tax | New Hampshire State Tax | Annual Difference |
|---|---|---|---|
| $52,000 | ~$1,201 | $0 | $1,201/yr ($100/mo) |
| $75,000 | ~$2,412 | $0 | $2,412/yr ($201/mo) |
| $100,000 | ~$4,062 | $0 | $4,062/yr ($339/mo) |
White River Junction and Lebanon. Brattleboro and Hinsdale. St. Johnsbury and Littleton. These are twin towns where people on one side of the river pay thousands more per year than their neighbors on the other side. Per CountryTaxCalc: "This creates strong financial incentive for Vermont border residents to relocate to New Hampshire." Hospital workers, teachers, and tradespeople along the Connecticut River valley face this comparison every pay period.
The property tax picture is closer: Vermont averages ~1.51% and New Hampshire averages ~1.57%. On property tax alone, Vermont is actually slightly cheaper. But the income tax gap at even moderate salaries overwhelms that small property tax advantage.
The Double Hit: 3rd Highest Property Tax Combined With High Income Tax
Most states pick one side. California has high income tax (13.3% top) but low property tax (~0.71%). Texas has high property tax (~1.60%) but zero income tax. Vermont charges both: an 8.75% top income tax AND roughly 1.51% property tax (3rd highest in America per AARP).
Per AARP (June 2026): Chittenden County (Burlington) has the highest median property tax at $6,617/year. Rutland County has the highest rate at 1.65%. Essex County has the lowest median at $3,035. The education property tax is state-administered and varies significantly by town, which means two homes of the same value in neighboring towns can have very different tax bills.
A Burlington homeowner earning $100,000 with a $400,000 home pays roughly $4,062 in income tax plus $6,040 in property tax: about $10,102 combined annually. The same earner in Nashville, Tennessee (zero income tax, ~0.66% property tax) would pay roughly $2,640 in property tax and zero income tax: about $2,640 total. The Vermont household pays $7,462 more per year.
Per AARP: Vermont ranks in the "bottom 10 on the Tax Foundation's 2026 State Tax Competitiveness Index." This double hit is the most commonly cited reason for Vermont's net domestic out-migration to lower-tax states.
Retirement Income in Vermont: What's Exempt and What Isn't
Per AARP (June 2026), Vermont's retirement income treatment breaks down like this:
| Income Type | Vermont Treatment | Conditions |
|---|---|---|
| Social Security | Exempt, partial, or taxed | Based on AGI thresholds ($50K/$65K) |
| CSRS pensions | $10,000 exempt | If income below $75K MFJ / $60K other |
| State/federal pensions | $10,000 exempt | Same income thresholds |
| Military retirement | Exempt | If AGI $125K or less. Partial $125K-$175K. |
| 401(k) / IRA | Fully taxable | Taxed at progressive rates, no exemption |
The military exemption has an AGI cap at $125,000, unlike states like South Carolina and Oklahoma that offer unlimited military retirement exemptions. The $10,000 CSRS/pension exemption is helpful but doesn't cover 401(k) or IRA withdrawals. Per AARP: Vermont also has an estate tax with a $5 million threshold. One source (CountryTaxCalc) incorrectly says Vermont "eliminated its estate tax in 2005," but AARP confirms the $5 million threshold is active.
Vermont Payroll Requirements 2026: What Every Employer Needs to Know
| Requirement | What VT Requires | Official Source |
|---|---|---|
| State income tax | Progressive, 4 brackets: 3.35%-8.75% | VT Department of Taxes |
| Withholding form | W-4VT (separate VT form required) | VT Department of Taxes |
| Local income tax | None anywhere in VT | Paylocity |
| SDI / PFML | None | Paylocity |
| Earned Sick Time | Up to 40 hrs/year. Accrual: 1 hr per 52 hrs worked (unique formula). | VT DOL |
| SUI | Wage base $15,400 (2026, up from $14,800). New employer: 1%. Experienced: 0.4%-5.4%. | VT DOL |
| Minimum wage | $14.42/hr (Jan 1, 2026, CPI-indexed). Tipped: $7.21 (50% rule). Can't decrease. | VT DOL |
| Overtime | 1.5x after 40 hrs/week | 21 V.S.A. |
| Sales tax | 6% state + up to 1% local = ~6.39% avg. Groceries and clothing under $110 exempt. | Tax Foundation |
| Property tax | ~1.51% avg (3rd highest in US). Education tax varies by town. | AARP |
| Estate tax | $5 million threshold | AARP |
Who Uses the Vermont Paystub Generator?
Burlington Metro Workers
The UVM Medical Center is the largest employer in Vermont, with thousands of nurses, doctors, technicians, and support staff in the Burlington area. The University of Vermont employs faculty, researchers, and staff. Dealer.com (Cox Automotive) provides digital marketing services to auto dealers nationwide from its Burlington offices. Burlington is also home to a growing food and beverage scene (Lake Champlain Chocolates, Switchback Brewing).
GlobalFoundries (Essex Junction)
The GlobalFoundries semiconductor fabrication plant in Essex Junction is one of the largest chipmaking facilities in the United States. It employs hundreds of engineers, technicians, and support staff producing advanced microchips. Workers at GlobalFoundries earn some of the highest wages in Vermont, pushing many into the 6.60% or 7.60% brackets.
Remote Workers (Using the $10K Grant)
Tens of thousands of Americans have evaluated Vermont's New Arrivals program. Remote workers from New York, California, Texas, and other states who establish VT domicile need Vermont-addressed pay stubs for lease applications, mortgage pre-approval, and insurance. Our generator produces stubs with a VT address and the correct progressive tax structure.
Tourism and Ski Resort Workers
Stowe Mountain Resort, Killington, Sugarbush, Mad River Glen, Stratton, Okemo, and Jay Peak employ thousands of workers seasonally. Vermont's fall foliage season draws millions of visitors. Hotels, restaurants, shops, and outfitters across the state hire seasonal and full-time staff who need pay documentation for off-season housing applications and financial transactions.
Agriculture and Food Production Workers
Vermont produces roughly 50% of all maple syrup in the United States. Ben and Jerry's (Waterbury) and Keurig Dr Pepper (Waterbury) are major food and beverage employers. Dairy farming remains a significant agricultural sector. Cabot Creamery cooperative operates across the state. Farm workers, production employees, and distribution staff all need accurate stubs with VT's progressive rates.
Small Business Owners and Contractors
A craft brewery in Stowe. A woodworking shop in Brattleboro. A plumbing company in Rutland. A bed-and-breakfast in Woodstock. Vermont small businesses manage four stub lines and the progressive rate structure. Self-employed workers carry the full 15.3% FICA self-employment tax per IRS rules.
How to Create a Vermont Pay Stub: 3 Steps
Vermont payroll has progressive rates but no local taxes, making the stub relatively clean at four lines. Enter your info and the tool handles the bracket math.
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Enter company and employee info
Business name, address, employee name, address, pay period dates. Vermont requires a W-4VT in addition to the federal W-4. Select filing status and allowances for both federal and state. -
Enter earnings and deductions
Hourly rate or salary (at least $14.42/hr, or $7.21 for tipped employees), hours worked, any overtime. Add voluntary deductions. The tool applies the correct 2026 progressive brackets (3.35%-8.75%) and calculates all federal taxes. -
Free preview, then download
Check every line. Gross pay, four mandatory deductions (federal, SS, Medicare, VT state), voluntary deductions, net pay, YTD totals. Download when satisfied.
Common Questions About Vermont Pay Stubs
What is VT income tax rate for 2026?
Progressive, 4 brackets: 3.35%, 6.60%, 7.60%, 8.75%. Top rate applies above ~$229,550 (single). Some sources say 5 brackets (counting a 0% bracket). Brackets indexed to inflation. Per Tax Foundation, AARP.
Does VT have a remote worker grant?
Yes. $10,000 over 2 years ($5,000/year) for new VT residents working remotely for out-of-state employers. New Arrivals program. Funded through 2026+. Only state in America that pays you to move there.
Does VT tax Social Security?
Partially. Exempt below ~$50K single / ~$65K MFJ. Partially exempt in middle range. Fully taxable above $60K/$75K. VT is 1 of ~12 states taxing SS. Per KDAInc: "catches many retirees by surprise."
How does VT compare to NH?
VT 8.75% top rate vs. NH 0%. At $100K: VT pays ~$4,062, NH pays $0. $339/month difference. Property tax is close (~1.51% VT vs ~1.57% NH). The income tax gap is the story.
What deductions are on a VT pay stub?
Four lines: federal, SS (6.2%), Medicare (1.45%), VT state (3.35%-8.75%). No local tax. No SDI. No PFML. W-4VT required.
What is VT minimum wage?
$14.42/hr (January 1, 2026). Tipped: $7.21 (50% rule). CPI-indexed annually, capped at 5%. Can't decrease. Per VT DOL official announcement.
Why is VT property tax so high?
~1.51% average (3rd highest in US). Education property tax is state-administered and varies by town. Chittenden County (Burlington): median $6,617/year. Combined with 8.75% top income tax, VT has one of the highest combined tax burdens in America.
Official Sources Referenced on This Page
Vermont Department of Labor (October 6, 2025) confirmed the $14.42/hr minimum wage effective January 1, 2026, the $7.21 tipped rate, and the CPI-indexing mechanism.
CountryTaxCalc (2026) confirmed the 4-bracket structure (3.35%-8.75%), the $10,000 remote worker grant (New Arrivals program), and the SS partial exemption thresholds. Note: CountryTaxCalc incorrectly says VT eliminated its estate tax in 2005; AARP confirms a $5M threshold is active.
AARP (June 2026) confirmed the bracket rates, the 1.51% property tax average, the $5 million estate tax threshold, the $10,000 retirement exemption for CSRS/pensions, and the military retirement exemption (AGI-based).
KDAInc (April 2026) provided the most detailed SS threshold analysis ($50K/$65K exemption floors, $60K/$75K full taxation thresholds).
OnPay (January 2026) and OnPay minimum wage (May 2026) confirmed the SUI rate ranges and minimum wage details.
Paylocity (January 2026) confirmed no SDI, no PFML payroll deductions, and the Earned Sick Time program.
RemoteLaws (February 2026) confirmed the $14.42 rate, the 50% tipped formula, the CPI mechanism, and the 5% annual cap.
IRS Topic 751 covers FICA rates (6.2% SS, 1.45% Medicare). SSA confirms the 2026 wage base at $184,500. IRS Publication 15 provides federal withholding tables.
Ready to Create Your Vermont Pay Stub?
Vermont has four tax brackets from 3.35% to 8.75%, the 3rd highest property tax in America, and a $10,000 grant for remote workers who move here. Four deduction lines. No local taxes. Our generator applies the correct 2026 progressive rates and calculates all federal deductions.
Free preview. No signup. Rates from VT Department of Taxes and Tax Foundation. Federal calculations per IRS. Updated June 2026.
Social Security Is Taxed Above $50K, But Exempt Below (And Nobody Shows the Thresholds)
Vermont is one of roughly 12 states that taxes Social Security benefits at the state level. But the picture is more nuanced than "Vermont taxes SS." Per KDAInc (April 2026): "Social Security is taxable in Vermont if your federal AGI exceeds $60,000 (joint filers) or $50,000 (single filers)."
Per KDAInc: "This catches many retirees by surprise." Most sources simply say "Vermont taxes Social Security" without showing the thresholds. The reality is that a retired couple with $60,000 combined income pays zero VT tax on their SS benefits. Only higher-income retirees get hit.