Vermont State Income Tax Overview

The Vermont Department of Taxes is responsible for overseeing state income tax for Vermont, including the setting of tax rates and the collecting of state income taxes.  Vermont state income taxes are assessed against qualified earnings for both residents and non-residents of Vermont.

The Vermont Department of Taxes requires that those who meet the minimum requirements must file a state income tax return each year.  The state income tax return for Vermont is separate from the annual federal income tax return that must be filed with the Internal Revenue Service (IRS) for federal income tax purposes.

Following are frequently asked questions about Vermont state income tax, including who is required to file, tax rates set by the Department of Taxes, and due dates for filing a return and paying any tax owed.  If you have additional questions about filing federal income tax, visit our site’s “Tax Relief” page.

Who has to file a state income tax return for Vermont?

You must file a state income tax return if all of the following are true:

  • You have to file a federal income tax return
  • You earned income of $100 or more from a source based in Vermont
  • You earned total gross income of $1,000 or more

This is true whether you were a resident of Vermont for the entire year, a portion of the year, or none of the year.

Income from a source based in Vermont would include but may not be limited to rental income or gain from the sale of property located in Vermont; pay received for services rendered in Vermont, and any other business income from businesses based in Vermont.

You should speak with a tax attorney to determine what income is reportable for Vermont state income tax purposes in your situation.

What tax rates does Vermont use to calculate state income tax owed?

The Vermont Department of Tax publishes tax tables containing the tax rates for each filing status and income level.  The Department of Tax may update these tax tables annually.

The current tax rates are in the tables below.

Single

Taxable Income

over

But not over

Pay

+ % on Excess

of amount over

0

34,500

0.00

3.55%

0

34,500

83,600

1,225.00

6.80%

34,500

83,600

174,400

4,564.00

7.80%

83,600

174,400

379,150

11,646.00

8.80%

174,400

379,150

29,664.00

8.95%

379,150

 

Married Filing Jointly

Taxable Income

over

But not over

Pay

+ % on Excess

of amount over

0

57,650

0.00

3.55%

0

57,650

139,350

2,047.00

6.80%

57,650

139,350

212,300

7,602.00

7.80%

139,350

212,300

379,150

13,292.00

8.80%

212,300

379,150

27,975.00

8.95%

379,150

 

Married Filing Separately

Taxable Income

over

But not over

Pay

+ % on Excess

of amount over

0

28,825

0.00

3.55%

0

28,825

69,675

1,023.00

6.80%

28,825

69,675

106,150

3,801.00

7.80%

69,675

106,150

189,575

6,646.00

8.80%

106,150

189,575

13,988.00

8.95%

189,575

 


Head of Household

Taxable Income

over

But not over

Pay

+ % on Excess

of amount over

0

46,250

0.00

3.55%

0

46,250

119,400

1,642.00

6.80%

46,250

119,400

193,350

6,616.00

7.80%

119,400

193,350

379,150

12,384.00

8.80%

193,350

379,150

28,735.00

8.95%

379,150

When is my state income tax return due in Vermont?

The Department of Taxes requires that you file your state income tax return by April 15 every year.  If April 15 falls on a weekend or a recognized holiday, your return and any taxes owed are due on the first weekday that is not a holiday.

Vermont allows taxpayers to obtain a six-month extension of time on when they have to file their state income tax return.  Note that this is an extension of time to file your state income tax return only, not on when you have to pay any tax liability you owe.  If you owe state income taxes, you must still remit payment of that amount by the original April 15 due date.  Any unpaid tax balance may result in the Department of Taxes assessing interest and penalties against you on the balance owed.

Can someone answer my questions and help me file my Vermont state income tax return?

Yes, if you have questions about completing your state income tax return for Vermont or you federal income tax return, you can get help by calling the phone number located at the top of this web site.  You will be put in touch with a tax attorney who is knowledgeable about Vermont state income tax laws who can answer your questions and help you file your return.  So you should get the help you need today to complete your tax return.

by Mark Johnston

Mark has been a contributor to legal web sites related to bankruptcy, tax, and criminal law since 2011. He has an Accounting degree from Texas A&M University.