🏛️
Taxes
Vermont Payroll Taxes 2026: Complete Overview for Employers
Vermont graduated 3.35%–8.75% income tax, SUI on the first $14,300, and all employer tax obligations explained.
Practical guides on VT payroll taxes, employer registration, SUI, minimum wage, and labor laws — written for small business owners, not accountants.
Written by payroll professionals at Pacific Data Services — trusted since 1969.
Vermont’s top marginal rate of 8.75% is among the highest in New England, with four brackets starting at 3.35%.
Vermont generally requires employers to pay employees weekly, one of the more frequent pay schedule requirements nationally.
Terminated employees must receive their final wages within 72 hours, requiring employers to process pay quickly.
Vermont graduated 3.35%–8.75% income tax, SUI on the first $14,300, and all employer tax obligations explained.
Get your EIN, register with Vermont, set up withholding, new hire reporting — the complete checklist.
New employer rate 1.0%, experienced range 0.40%–5.40%, wage base $14,300.
Vermont minimum wage $14.01/hr. Vermont’s minimum wage is $14.01/hr, adjusted annually for CPI. Tipped employees may be paid $7.01/hr (50% of minimum wage).
IRS classification rules, Vermont-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for Vermont small businesses.