Vermont payroll taxes
Every tax withheld from a Vermont paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: oui.doleta.gov, taxfoundation.org, vialtopartners.com, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Vermont SUTA | — | 1% (new) | $15,400 |
| Child Care Contribution | 0.11% | 0.33% | No limit |
| Vermont income tax | 3.35%–8.75% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
Vermont charges new employers 1% on the first $15,400 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0.4% to 5.4%. Fiscal-year (July 1) rates. Construction new employers pay more. The 2027 base may follow an indexing rule but is not yet announced.
Register and file with the Vermont unemployment tax agency.
Paid leave and disability programs
- Child Care Contribution: employees pay 0.11%, employers pay 0.33%. Payroll tax of 0.44% of wages (since July 1, 2024); employer may withhold up to 25% (0.11%) from employees, employer pays at least 0.33%.
Income tax withholding
Vermont has a graduated income tax with 4 brackets, from 3.35% up to 8.75% on taxable income over $249,700 for single filers.
Frequently asked questions
- What payroll taxes do employers pay in Vermont?
- Social Security, Medicare, federal unemployment (FUTA) and Vermont unemployment insurance (SUTA), plus Child Care Contribution.
- What is the Vermont SUTA wage base for 2026?
- $15,400 per employee.
- Does Vermont require state income tax withholding?
- Yes. Employers withhold Vermont income tax based on the employee's state withholding certificate or federal W-4.