★ Vermont
2026 Compliance Year
Vermont Payroll Compliance
Every rate, wage base, and threshold Vermont employers need for 2026 — sourced from the Dept. of Taxes and Dept. of Labor — including a supplemental withholding rate that changes depending on which federal rate an employer applies.
Last reviewed: July 2026 · Sources: tax.vermont.gov, labor.vermont.gov
Min Wage
$14.42
CPI-indexed
Income Tax
Graduated
up to 4 brackets
Supplemental Rate
6.6%
11.1% if fed 37% used
SUI Wage Base
$15,400
2026 figure
Local Tax
None
no city/county payroll tax
Minimum Wage & Hours
Vermont’s minimum wage is $14.42/hour for 2026, indexed annually to the Consumer Price Index. No Vermont city or town sets its own minimum wage above the state rate.
| Item | 2026 Value | Notes |
|---|---|---|
| Statewide minimum wage | $14.42/hr | Annual CPI adjustment each January 1 |
| Overtime rule | 40 hrs/week | Federal FLSA; no separate state daily overtime rule |
| Local wage ordinances | None | No Vermont city or town sets its own minimum wage |
Statewide minimum wage
$12.55 → $14.42 since 2022
Vermont indexes its rate each January 1 to 5% or the CPI, whichever is smaller.
$12.55
$13.18
$13.67
$14.01
$14.42
20222023202420252026
Per 21 V.S.A. § 384, indexed to the lesser of 5% or CPI-U each year.
2026 minimum wage — New England comparison
Vermont trails Connecticut, leads New Hampshire
New Hampshire has no state minimum wage law and defaults entirely to the federal floor.
Connecticut
$16.94
Rhode Island
$16.00
Maine
$15.10
Massachusetts
$15.00
Vermont
$14.42
New Hampshire
$7.25
Bars scaled to Connecticut's $16.94. Vermont is highlighted in deep blue as the subject state.
State Income Tax Withholding
Vermont uses a graduated income tax system. Its supplemental wage withholding rate has an unusual feature worth flagging: it depends on which federal supplemental rate an employer applies to the same payment.
| Item | 2026 Value | Notes |
|---|---|---|
| Bracket structure | Graduated | Multiple brackets; confirm exact current thresholds via VT Dept. of Taxes |
| Supplemental wage rate (standard) | 6.6% | Applies when the standard federal supplemental method is used |
| Supplemental wage rate (federal 37% used) | 11.1% | Applies if the employer uses the federal flat 37% supplemental rate on the same payment |
| Local income tax | None | No Vermont city or town imposes one |
Vermont's supplemental rate depends on your federal method
Most states set a single flat supplemental withholding rate regardless of how the employer handles federal withholding on the same bonus or commission payment. Vermont is different: choosing the federal flat 37% method nearly doubles Vermont's own supplemental rate, from 6.6% to 11.1%. Payroll teams processing large bonuses should confirm which federal method is in use before applying the Vermont rate.
Vermont supplemental withholding rate
Nearly doubles based on your federal method
The same bonus payment can trigger two different Vermont withholding rates depending solely on which federal supplemental method the employer chooses.
Federal flat 37% method used
11.1%
Standard federal method used
6.6%
Bars scaled to the 11.1% ceiling that applies when the federal 37% flat rate is used on the same payment.
Unemployment Insurance (SUI)
Vermont’s SUI wage base is $15,400 for 2026.
| Item | 2026 Value | Notes |
|---|---|---|
| SUI taxable wage base | $15,400 | Per employee, per year |
| Administering agency | VT Dept. of Labor | Quarterly filing, standard schedule |
Official Vermont .gov Resources
About this guide: This page represents independent editorial analysis prepared for payroll professionals, compiled from publicly available Vermont state government publications (Dept. of Taxes and Dept. of Labor). Rates and thresholds change; always verify current figures against the official .gov sources linked above before making payroll decisions. This is not legal or tax advice — consult a qualified advisor for your specific situation. Last reviewed July 2026.