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VT · payroll profile

Vermont

Everything an out-of-state employer needs before running a Vermont payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
Graduated to 8.75%
Reciprocal agreements
None
SUI wage base 2026
$15,400
Local income taxes
No

Income tax withholding

Imposes wage income tax Yes
Rate structure Graduated, top marginal rate 8.75%
Withholding certificate W-4VT
Employee's Withholding Allowance Certificate
Accepts federal Form W-4 No
Convenience-of-the-employer rule No
Nonresident withholding threshold $100 of in-state wages
LOW CONFIDENCE -- sources conflict. Tax Foundation (2026) reports a more-than-$100 Vermont-source income threshold for nonresidents; COST's chart reports a 30-day withholding threshold. Neither was confirmed against a Vermont Department of Taxes publication. Verify with the Vermont Withholding Instructions before relying on this field.
Local income taxes No
No local personal income or wage taxes in Vermont.

Reciprocity

States that exempt Vermont residents

A Vermont resident working in these states files that state's certificate and is taxed only by Vermont.

District of Columbia

Unemployment insurance and paid leave

Taxable wage base 2026 $15,400
2025 base was $14,800.
New employer rate 1%
Vermont's state paid family and medical leave program is voluntary, not a mandatory payroll contribution.
Experience rate range 0.4% – 5.4%
Experience-rating method benefit ratio
Employee UI contribution No
Paid family / medical leave No
Vermont's Family and Medical Leave Insurance program is voluntary/opt-in - not a mandatory payroll contribution.

Employer registration

Tax agency
Vermont Department of Taxes
UI agency
Vermont Department of Labor

Sources

tax.vermont.gov · taxfoundation.org · cost.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.