Vermont paychecks in 2026: what changed
Vermont's 2026 withholding tables use four rates on higher slices of pay after allowances.
The changes
- New federal withholding tables. The IRS updated Publication 15-T for 2026, including changes from the 2025 tax law. The standard deduction is $16,100 single, $32,200 married filing jointly, and $24,150 head of household.
- Social Security wage base: $184,500 (up from $176,100). If you earn more, Social Security stops later in the year.
- Tips and overtime deductions for 2025–2028 — see below.
- Rates of 3.35%, 6.6%, 7.6% and 8.75%. Weekly, the Single table starts at $75 and the Married table at $226.
- One allowance is worth $5,400 a year.
- Child Care Contribution still 0.44%, with up to 0.11% taken from your pay.
- Minimum wage: $14.42 (up from $14.01); tipped cash wage $7.21 (up from $7.01).
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.
Work out your 2026 Vermont paycheck →
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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)