Vermont Income Tax Rates

Vermont’s income tax rates were adjusted effective for tax year 2018 in the state’s fiscal 2019 budget (H. 16), which was passed June 25 by both houses of the state legislature.

The measure decreased the number of state income tax brackets to four from five by combining the top two rates into one bracket of 8.75 percent, as well as decreasing the three lower rates by 0.2 percent. The new tax rates are 3.35, 6.60, 7.60, and 8.75 percent, compared with the previous rates of 3.55, 6.80, 7.80, 8.80, and 8.95 percent.

The bill also established a state ...