Vermont State Income Tax Withholding Information

State Abbreviation:

VT

State Tax Withholding State Code:

50

Acceptable Exemption Form:

W-4VT

Basis for Withholding:

Federal or State Exemptions

Acceptable Exemption Data:

S or M/Number of Exemptions

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

If a State income tax certificate has not been processed or if a valid State exemption code is not present, the Federal exemptions will be used in the computation of State tax. If the Federal exemptions are used and the employee has elected to have additional Federal taxes withheld, then additional State withholdings will be withheld at 27 percent of the additional Federal tax withheld and added to the State tax withholdings.

Additional Resources:

TAXES 14-05, Vermont State Income Tax Withholding

Withholding Formula Arrow Left(Effective Pay Period 06, 2014)Arrow Right

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
  5. Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute taxable income:

    Exemption Allowance = Arrow Left$3,950Arrow Right x Number of Exemptions

  6. Apply the taxable income computed in step 5 to the following table to determine the annual Vermont tax withholding:

    Tax Withholding Table

    Single or Head of Household

    If the Amount of
    Taxable Income Is:

    The Amount of Vermont
    Tax Withholding Should Be:

    Over:

    But Not Over:

     

    Of Excess Over:

    $0

    $2,650

     

    $0.00

    plus

    0.00%

    $0

    2,650

    Arrow Left$39,150

     

    0.00

    plus

    3.55%

    2,650

    39,150

    91,600

     

    1,295.75

    plus

    6.80%

    39,150

    91,600

    188,600

     

    4,862.35

    plus

    7.80%

    91,600

    188,600

    407,350

     

    12,428.35

    plus

    8.80%

    188,600

    407,350

    and over

     

    31,678.35

    plus

    8.95%

    407,350Arrow Right

    Married

    If the Amount of
    Taxable Income Is:

    The Amount of Vermont
    Tax Withholding Should Be:

    Over:

    But Not Over:

     

    Of Excess Over:

    $0

    $8,000

     

    $0.00

    plus

    0.00%

    $0

    8,000

    Arrow Left$68,600

     

    0.00

    plus

    3.55%

    8,000

    68,600

    157,300

     

    2,151.30

    plus

    6.80%

    68,600

    157,300

    235,300

     

    8,182.90

    plus

    7.80%

    157,300

    235,300

    413,550

     

    14,266.90

    plus

    8.80%

    235,300

    413,550

    and over

     

    29,952.90

    plus

    8.95%

    413,550Arrow Right
  7. Divide the annual tax withholding by 26 to obtain the biweekly Vermont tax withholding. If Federal exemptions were used and there are additional Federal withholdings, proceed to step 8.
  8. If Federal exemptions were used and additional Federal tax was withheld, multiply the additional amount by 27 percent and add that to the result of step 7 to obtain the biweekly Vermont tax withholding.