Start for Free
eTax.com
Start for Free

Vermont State Tax Return

Vermont's Official Website http://www.state.vt.us/tax/index.shtml
Vermont

Vermont Individual Income Tax Provisions

Vermont assesses state income tax on its residents using a joint filing system. This method allows married couples to combine their income into a single amount, which is then taxed. In doing so, Vermont adheres to the idea that a family is a single economic unit and should be taxed as such.

Additionally, the state recognizes civil unions, in which taxpayers in these partnerships are taxed the same as married couples. Vermont's tax base is situated around the federal taxable income, though some forms of income are not included in the calculation.

Exemptions

For the most part, Vermont follows the federal law for income inclusion rather closely, however there are a few sources of income that are exempt from taxation:

  • Interest from U.S. Government bonds
  • Either 40% of capital gains on certain assets, or the lesser of $5,000 or the actual amount of net adjusted capital gains depending on which option is greater, though the exemption is limited by 40% of federal taxable income
  • Active duty military income earned outside the state and income from full-time active duty in or related to a combat zone
  • The first $2,000 of training compensation for Reservists and National Guard Members with AGI less than $50,000
  • Funds from federal armed forces education loan repayment

Deductions

Vermont uses the same federal standard and itemized deductions, and while state and local income taxes over $5,000 are not deductible (nor are federal income taxes), there are other deductions residents can take when filing their state return:

  • Federal targeted job program benefits
  • Business expenses related to Americans with Disabilities Act compliance
  • Interest and income from state telecommunications authority investments
  • Student assistance corporations
  • State public power supply authority
  • Federal bonus depreciation adjustments
  • State Build America bonds.

2023 Vermont Tax Rates

If taxable income more than - but not over - the tax is:
$0 $37,450 3.55% of the amount over $0
$37,450 $90,750 $1,329.48 plus 6.8% of the amount over $37,450
$90,750 $189,300 $4,953.88 plus 7.8% of the amount over $90,750
$189,300 $411,500 $12,640.78 plus 8.8% of the amount over $189,300
$411,500 - $32,194.38 plus 8.95% of the amount over $411,500
If taxable income more than - but not over - the tax is:
$0 $62,600 3.55% of the amount over $0
$62,600 $151,200 $2,222.30 plus 6.8% of the amount over $62,600
$151,200 $230,450 $8,247.10 plus 7.8% of the amount over $151,200
$230,450 $411,500 $14,428.60 plus 8.8% of the amount over $230,450
$411,500 - $30,361 plus 8.95% of the amount over $411,500
If taxable income more than - but not over - the tax is:
$0 $31,300 3.55% of the amount over $0
$31,300 $75,600 $1,111.15 plus 6.8% of the amount over $31,300
$75,600 $115,225 $4,123.55 plus 7.8% of the amount over $75,600
$115,225 $205,750 $7,214.30 plus 8.8% of the amount over $115,225
$205,750 - $15,180.50 plus 8.95% of the amount over $205,750
If taxable income more than - but not over - the tax is:
$0 $50,200 3.55% of the amount over $0
$50,200 $129,600 $1,782.10 plus 6.8% of the amount over $50,200
$129,600 $209,850 $7,181.30 plus 7.8% of the amount over $129,600
$209,850 $411,500 $13,440.80 plus 8.8% of the amount over $209,850
$411,500 - $31,186 plus 8.95% of the amount over $411,500

eTax.com works with the IRS and state revenue services to bring you the latest tax laws, forms & schedules.

When you prepare a federal return with eTax.com, we make it quick and easy to complete your Vermont state tax return. eTax.com offers e-file and direct deposit with all states that have e-file and direct deposit capabilities.


File My Federal & Vermont State Returns!

Vermont Services Available
Preparation Preparation of a state tax return for Vermont is available for $29.95.
E-File E-File is not available for Vermont.
Direct Deposit Direct Deposit is not available for Vermont.
Non-Resident Preparation Non-resident VT state return's are available upon request.
Non-Resident E-File E-Filing non-resident VT state returns is not available.
Filing Deadline
VT Counties VT Cities
AddisonBridport, Bristol, East Middlebury, Ferrisburg, Granville, Hancock, Middlebury, Monkton, New Haven, North Ferrisburg, Orwell, Ripton, Roxbury, Salisbury, Shoreham, Starksboro, Vergennes, Whiting
BenningtonArlington, Bennington, Bondville, Dorset, East Arlington, East Dorset, Manchester, Manchester Center, North Bennington, North Pownal, Peru, Pownal, Readsboro, Rupert, Shaftsbury, Stamford, West Rupert
CaledoniaBarnet, Danville, East Burke, East Hardwick, East Ryegate, East Saint Johnsbu, Groton, Hardwick, Lower Waterford, Lyndon, Lyndon Center, Lyndonville, McIndoe Falls, Passumpsic, Peacham, Saint Johnsbury, Saint Johnsbury Ce, Sheffield, South Ryegate, Sutton, West Burke, West Danville
ChittendenBurlington, Cambridge, Charlotte, Colchester, Essex, Essex Junction, Fairfax, Hinesburg, Huntington, Jericho, Jonesville, Milton, Richmond, Shelburne, South Burlington, Underhill, Underhill Center, Westford, Williston, Winooski
EssexAverill, Beecher Falls, Canaan, Concord, East Haven, Gilman, Granby, Guildhall, Island Pond, Lunenburg, North Concord, Norton
FranklinBakersfield, East Berkshire, East Fairfield, Enosburg Falls, Fairfield, Franklin, Highgate Center, Highgate Springs, Montgomery, Montgomery Center, Richford, Saint Albans, Saint Albans Bay, Sheldon, Sheldon Springs, Swanton
Grand IsleAlburg, Grand Isle, Isle la Motte, North Hero, South Hero
LamoilleBelvidere Center, Eden, Eden Mills, Hyde Park, Jeffersonville, Johnson, Lake Elmore, Morrisville, Moscow, North Hyde Park, Stowe, Waterville, Wolcott
OrangeBradford, Brookfield, Chelsea, Corinth, East Corinth, East Randolph, East Thetford, Fairlee, Newbury, North Thetford, Post Mills, Randolph, Randolph Center, South Strafford, Strafford, Thetford, Thetford Center, Tunbridge, Vershire, Washington, Wells River, West Fairlee, West Newbury, West Topsham, Williamstown
OrleansAlbany, Barton, Beebe Plain, Coventry, Craftsbury, Craftsbury Common, Derby, Derby Line, East Charleston, Glover, Greensboro, Greensboro Bend, Irasburg, Lowell, Morgan, Newport, Newport Center, North Troy, Orleans, Troy, West Charleston, West Glover, Westfield
RutlandBelmont, Benson, Bomoseen, Brandon, Castleton, Center Rutland, Chittenden, Cuttingsville, Danby, East Poultney, East Wallingford, Fair Haven, Florence, Forest Dale, Hydeville, Killington, Middletown Springs, Mount Holly, North Clarendon, Pawlet, Pittsfield, Pittsford, Poultney, Proctor, Rutland, Wallingford, Wells, West Pawlet, West Rutland
WashingtonAdamant, Barre, Cabot, Calais, East Barre, East Calais, East Montpelier, Graniteville, Marshfield, Montpelier, Moretown, North Montpelier, Northfield, Northfield Falls, Plainfield, South Barre, Waitsfield, Warren, Waterbury, Waterbury Center, Websterville, Woodbury, Worcester
WindhamBellows Falls, Brattleboro, Cambridgeport, East Dover, Grafton, Jacksonville, Jamaica, Londonderry, Marlboro, Newfane, Putney, Saxtons River, South Londonderry, South Newfane, Townshend, Vernon, Wardsboro, West Dover, West Dummerston, West Halifax, West Townshend, West Wardsboro, Westminster, Westminster Statio, Whitingham, Williamsville, Wilmington
WindsorAscutney, Barnard, Bethel, Bridgewater, Bridgewater Corner, Brownsville, Cavendish, Chester, Chester Depot, Gaysville, Hartford, Hartland, Hartland Four Corn, Ludlow, North Hartland, North Pomfret, North Springfield, Norwich, Perkinsville, Plymouth, Proctorsville, Quechee, Reading, Rochester, Sharon, South Pomfret, South Royalton, South Woodstock, Springfield, Stockbridge, Taftsville, West Hartford, Weston, White River Juncti, Wilder, Windsor, Woodstock