Vermont Hourly Paycheck Calculator
Your hourly rate and hours in, your take-home pay out. Overtime is paid at 1.5× your rate; tips you report are taxed like wages.
| Per paycheck | Amount | Per year |
|---|---|---|
| Gross pay | $1,600.00 | $41,600.00 |
| Federal income tax · withheld | −$108.15 | −$2,812.00 |
| Social Security (6.2%) | −$99.20 | −$2,579.20 |
| Medicare (1.45%) | −$23.20 | −$603.20 |
| Vermont income tax · withheld | −$41.58 | −$1,081.08 |
| Vermont Child Care Contribution · 0.11% | −$1.76 | −$45.76 |
| Take-home pay | $1,326.11 | $34,478.76 |
How the federal income tax was worked out
| Pay subject to income tax, for the year · $1,600.00 × 26 paychecks | $41,600.00 |
| Minus the IRS withholding allowance · Pub 15-T Worksheet 1A, line 1g | −$8,600.00 |
| Adjusted yearly wage | $33,000.00 |
| Tax from the IRS yearly table · standard table | $2,812.00 |
| Federal income tax per paycheck · divided by 26 | $108.15 |
IRS Publication 15-T (2026), Worksheet 1A — the percentage method payroll software uses for a Form W-4 from 2020 or later. Your employer's figure can differ by a few cents because of rounding.
How the Vermont income tax was worked out
| Pay subject to Vermont tax this paycheck · after pre-tax 401(k) and benefits | $1,600.00 |
| Minus W-4VT allowances · 1 × $207.69 ($5,400 a year ÷ 26) | −$207.69 |
| Wages after allowances · Single table | $1,392.31 |
| Plus 3.35% of pay over $151 | $41.58 |
| Vermont income tax this paycheck | $41.58 |
Hourly pay in Vermont
Vermont's minimum wage is $14.42 an hour from January 1, 2026, up from $14.01.
Tipped workers. A service or tipped employee — someone who usually gets more than $120 a month in tips — can be paid a cash wage of $7.21 an hour, when tips bring pay up to at least $14.42.
Overtime. State law requires time-and-a-half after 40 hours in a workweek, but it leaves out many workplaces, such as retail and service businesses, hotels, motels, restaurants and hospitals. Where federal wage law covers a job, its overtime rule of time-and-a-half after 40 hours applies.
Extra hours raise both state lines. Income tax and the Child Care Contribution are both based on your pay, so overtime and tips reported to your employer raise them too.
Because hours change from week to week, your withholding changes too: a week with lots of overtime is withheld as if you earned that much every week, so more comes out. It usually evens out when you file your return.
What comes out of a Vermont paycheck
- Federal income tax withholding — worked out from your pay and your Form W-4, using the IRS tables for 2026.
- Social Security — 6.2% of your pay, up to $184,500 of pay in 2026. Above that, it stops for the rest of the year.
- Medicare — 1.45% of all your pay, plus 0.9% on pay above $200,000 in the year.
A Vermont paycheck can have two state lines:
- Vermont income tax, worked out with the Department of Taxes' withholding tables. The rates are 3.35%, 6.6%, 7.6% and 8.75% on each higher slice of pay.
- Child Care Contribution: up to 0.11% of your wages ($1.10 per $1,000). This is a 0.44% payroll tax your employer pays. It may take up to a quarter of it from your pay. There is no yearly cap.
Here is how the income tax is worked out:
- Start with your pay subject to income tax for this paycheck. A traditional 401(k) or pre-tax health plan that is left out of federal income tax wages is left out for Vermont too.
- Subtract your W-4VT allowances. Each one is worth $5,400 a year, split across your paychecks — $103.85 a week or $207.69 every two weeks.
- Find what's left in the Single or Married table for your pay period. The first slice has no withholding. After that the table adds 3.35% of each dollar, then 6.6%, 7.6% and 8.75% on higher slices.
- Add any extra amount you asked for on your W-4VT.
Open "How the Vermont income tax was worked out" under the result to see each step.
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
Other Vermont calculators
Paycheck calculator · Hourly paycheck calculator · Salary paycheck calculator · What changed for 2026 · Hourly to salary · Salary to hourly
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- Vermont Department of Taxes — GB-1210, 2026 Income Tax Withholding Instructions, Tables, and Charts — percentage method tables (Single, Married) at 3.35%, 6.60%, 7.60%, 8.75%; one allowance = $5,400 a year ($103.85 weekly, $207.69 biweekly, $225.00 semimonthly, $450.00 monthly); worked example; no W-4VT: employer may use the federal W-4
- Vermont Department of Taxes — GB-1210 (2026) document page — published December 22, 2025
- Vermont Department of Taxes — Form W-4VT, Employee's Withholding Allowance Certificate — filing status boxes; allowance worksheet (1 for yourself, 1 for a spouse who doesn't work if filing jointly, dependents, 1 for head of household); line for extra withholding; Exempt
- Vermont Department of Taxes — Form W-4VT FAQs — not required but recommended; without it the employer may use the federal W-4
- Vermont Department of Taxes — Child Care Contribution — 0.44% of wages paid on or after July 1, 2024; employer may withhold at most 25% of it (0.11%) from employee wages; wages as defined in 26 U.S.C. § 3401
- Vermont Department of Taxes — GB-1326, Vermont Child Care Contribution Guide (Oct. 2024) — "The maximum an employer may elect to withhold from an employee is 0.11%"; no wage cap
- Vermont Department of Labor — Minimum wage increase starting January 2026 (Oct. 6, 2025) — $14.42 from $14.01; tipped minimum wage $7.21 from $7.01
- 21 V.S.A. § 384 — Employment; wages (minimum wage, tipped employees, overtime) — service or tipped employee: customarily more than $120.00 a month in tips; time-and-a-half after 40 hours, with exemptions (retail and service establishments, hotels, motels, restaurants, hospitals and others)
- 21 V.S.A. § 342 — Weekly payment of wages — paid weekly (or biweekly/semimonthly with notice) for wages up to six days before payday; quitting: on the last regular payday, or the following Friday if there is none; discharged: within 72 hours
- Vermont Department of Labor — Online Wage Claim Form — wage claims to the Wage and Hour Program; paper form also available
- Vermont Department of Labor — Wage Complaint Form (PDF)
Questions
What are the Vermont income tax rates in 2026?
3.35%, 6.6%, 7.6% and 8.75%. The withholding tables apply each rate to a higher slice of your pay after allowances.
How much is taken out of a $1,000 paycheck in Vermont?
For a single filer paid every two weeks with nothing else on the W-4, a $1,000 paycheck has about $38.08 of federal income tax, $62.00 of Social Security and $14.50 of Medicare taken out, $21.48 of Vermont income tax, leaving $862.84. Enter your own details in the calculator for your exact figure.
What is $20 an hour after taxes in Vermont?
Working 40 hours a week and paid every two weeks, $20 an hour is $1,600.00 before tax and about $1,326.11 after tax per paycheck — $34,478.76 a year — for a single filer with a standard W-4.
How much is a Vermont withholding allowance worth?
$5,400 a year, divided by your number of paychecks: $103.85 weekly, $207.69 every two weeks, $225 twice a month or $450 monthly.
What is the Child Care Contribution on my pay stub?
A Vermont payroll tax of 0.44% of wages. Your employer owes it and may take up to 0.11% from your pay — $1.10 for every $1,000 you earn.
Do I have to fill in a W-4VT?
No, but the Department of Taxes recommends it. Without one, your employer may use your federal W-4, which may not withhold enough Vermont tax.
When do I get my last paycheck in Vermont?
If you are let go, within 72 hours. If you quit, on the last regular payday, or the Friday after if there is no regular payday.