What are the income tax rates in Vermont?

The income tax rates in Vermont are progressive, ranging from 3.35% to 8.75%. As of the 2021 tax year, individuals with taxable income up to $47,550 pay a tax rate of 3.35%. For income between $47,551 and $114,950, the rate increases to 6.60%. Those earning between $114,951 and $204,700 are subject to a 7.60% tax rate. The highest tax bracket, applicable to incomes exceeding $204,700, imposes an 8.75% rate. For joint filers, married couples, or heads of household, the tax brackets are adjusted accordingly. Additionally, there are various deductions, exemptions, and credits available to taxpayers, which can further reduce their overall tax liability. It is important to consult the Vermont Department of Taxes or a tax professional for specific and updated information pertaining to individual situations.