PAYROLL TAX RATES
Vermont payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in Vermont, each with its effective date and the agency page it comes from.
Unemployment insurance
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Vermont Department of Labor, Unemployment Insurance (opens in a new tab) | Vermont DOL, Unemployment Insurance for Employers (opens in a new tab) | |
| Taxable wage base | $15,400 | Vermont DOL, Quarterly Reporting & Taxable Wage Information (opens in a new tab) | |
| Wage base set each year | Yes | 21 V.S.A. §1321, Contributions; taxable wage base changes (2025 Vermont Statutes, Justia) (opens in a new tab) | |
| New employer rate | 1%1%; an out-of-state (foreign) construction corporation in NAICS 236, 237 or 238 gets the industry average instead (1.9%, 4.0%, 2.7%)Surcharges includedConstruction 1.9% to 4% | Vermont DOL, Unemployment Tax Rates (opens in a new tab) | |
| Employee contribution | None | Vermont DOL, Vermont Employer Handbook: A Guide to Unemployment Insurance in Vermont (PDF, file dated 06/26) (opens in a new tab) | |
| When an employer becomes liable | One or more employees in each of 20 weeks, or $1,500 in wages in any calendar quarter, in the current or preceding year. 501(c)(3) religious (other than churches), charitable and educational organizations: covered with no weeks or wages test. Domestic: $1,000 cash wages in a quarter; agricultural: $20,000 in a quarter or 10 workers in 20 weeks. Also the State and its political subdivisions, successors to a covered employer, and any FUTA-liable employer hiring for a job in Vermont. | Vermont DOL, Vermont Employer Handbook: A Guide to Unemployment Insurance in Vermont (PDF, file dated 06/26) (opens in a new tab) | |
| Experience rate after | 1 year | Vermont DOL, Unemployment Tax Rates (opens in a new tab) | |
| Quarterly report due | Last day of the month after the quarter: April 30, July 31, October 31, January 31 | Vermont DOL, Quarterly Reporting & Taxable Wage Information (opens in a new tab) | |
| FUTA credit reduction | Not yet set | US DOL OUI, FUTA Credit Reductions (opens in a new tab) |
Checked on October 5, 2026.
Income tax withholding
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Vermont Department of Taxes (opens in a new tab) | Vermont Department of Taxes, Withholding for Employers (opens in a new tab) | |
| Withholding rates | 3.35% to 8.75% | Vermont Department of Taxes, GB-1210-2026, 2026 Income Tax Withholding Instructions, Tables, and Charts (PDF) (opens in a new tab) | |
| Supplemental wages | Same as regular wages | Vermont Department of Taxes, GB-1210-2026, 2026 Income Tax Withholding Instructions, Tables, and Charts (PDF) (opens in a new tab) | |
| Reciprocity | None | Vermont Department of Taxes, Withholding Tax FAQs (opens in a new tab) | |
| Employee's withholding form | Form W-4VT | Vermont Department of Taxes, GB-1210-2026, 2026 Income Tax Withholding Instructions, Tables, and Charts (PDF) (opens in a new tab) | |
| Local income taxes | No | Vermont Department of Taxes, Local Option Tax (opens in a new tab) |
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $14.42 | Vermont DOL, Worker Rights & Wages (opens in a new tab) | |
| Tipped employees, cash wage | $7.21 | Vermont DOL, Worker Rights & Wages (opens in a new tab) | |
| Rises with inflation | Yes | Vermont DOL, Vermont Employer Handbook: A Guide to Unemployment Insurance in Vermont (PDF, file dated 06/26) (opens in a new tab) | |
| Local rates | One statewide rate (21 V.S.A. §384); no city or town minimum wages. | Vermont DOL, Minimum Wage Increase Starting January 2026 (press release) (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
Vermont Family and Medical Leave Insurance (VT FMLI)
Checked on October 5, 2026.
Other payroll-funded programs
Vermont Child Care Contribution
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From the first employee | Vermont DOL, Workers' Compensation Fact Sheet for Employers (PDF) (opens in a new tab) | |
| State fund | None; private insurers | Vermont DOL, Workers' Compensation Fact Sheet for Employers (PDF) (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in Vermont
Employer taxes and contributions on one employee's pay in Vermont, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
Pay$
Pay frequency
Construction employerUses the construction new employer rate
- Employer taxes and contributions per check
- $221.09
- First check of the year
- Cost per check
- $2,528.78
- Pay included, first check
- Cost per year
- $64,984.00
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,491.85, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Vermont unemployment | 1% on the first $15,4001%; an out-of-state (foreign) construction corporation in NAICS 236, 237 or 238 gets the industry average instead (1.9%, 4.0%, 2.7%) | $23.08None after check 7 | $154.00 | Vermont DOL, Unemployment Tax Rates (opens in a new tab); Vermont DOL, Quarterly Reporting & Taxable Wage Information (opens in a new tab) |
| Vermont Child Care Contribution, employer share | 0.33% of all pay | $7.62 | $198.00 | Vermont Department of Taxes, GB-1326, The Vermont Child Care Contribution (October 2024, PDF) (opens in a new tab) |
| Employer taxes and contributions | $221.09 | $4,984.00 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,528.78 | $64,984.00 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
A new employer pays 1%; an out-of-state (foreign) construction corporation in NAICS 236, 237 or 238 gets the industry average instead (1.9%, 4.0%, 2.7%). The tax applies to the first $15,400 of each employee's wages a year. The base is reset each year from average wages. An experience rate follows after 1 year.
Yes: 3.35% to 8.75%. Supplemental wages: same as regular wages.
$14.42 an hour.
No mandatory program; Vermont's paid leave plan is voluntary.
WORKLIO HCM
Payroll taxes calculated, deposited and filed in every state
Worklio HCM calculates, deposits and files payroll taxes in every state and locality, city, county and school district taxes included, and rates and rules update without you noticing. We help open state accounts when you hire somewhere new. Payroll and HCM for companies with 50 to 50,000+ employees.
Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- Vermont DOL, Unemployment Insurance for Employers (opens in a new tab)
- Vermont DOL, Quarterly Reporting & Taxable Wage Information (opens in a new tab)
- 21 V.S.A. §1321, Contributions; taxable wage base changes (2025 Vermont Statutes, Justia) (opens in a new tab)
- Vermont DOL, Unemployment Tax Rates (opens in a new tab)
- Vermont DOL, Vermont Employer Handbook: A Guide to Unemployment Insurance in Vermont (PDF, file dated 06/26) (opens in a new tab)
- US DOL OUI, FUTA Credit Reductions (opens in a new tab)
- Vermont Department of Taxes, Withholding for Employers (opens in a new tab)
- Vermont Department of Taxes, GB-1210-2026, 2026 Income Tax Withholding Instructions, Tables, and Charts (PDF) (opens in a new tab)
- Vermont Department of Taxes, Withholding Tax FAQs (opens in a new tab)
- Vermont Department of Taxes, Local Option Tax (opens in a new tab)
- Vermont DOL, Worker Rights & Wages (opens in a new tab)
- Vermont DOL, Minimum Wage Increase Starting January 2026 (press release) (opens in a new tab)
- Office of Governor Phil Scott, Governor Phil Scott and The Hartford Announce Vermont Family and Medical Leave Insurance Open Enrollment for Individuals (May 1, 2025) (opens in a new tab)
- Office of Governor Phil Scott, Governor Phil Scott and The Hartford Announce February Launch of Vermont Family and Medical Leave Insurance Program for Employers (January 18, 2024) (opens in a new tab)
- The Hartford, Vermont Optional Family and Medical Leave Insurance (VT FMLI) (opens in a new tab)
- Vermont Department of Taxes, Child Care Contribution (opens in a new tab)
- Vermont Department of Taxes, GB-1326, The Vermont Child Care Contribution (October 2024, PDF) (opens in a new tab)
- Vermont DOL, Workers' Compensation Fact Sheet for Employers (PDF) (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.