TAXES 19-23, Vermont State Income Tax Withholding
Published: March 8, 2019
Effective: Pay Period 03, 2019
Summary
The income tax withholding formula on supplemental wages for the State of Vermont includes the following changes:
- The annual amount per exemption has increased from $4,050 to $4,250.
- The Single, Head of Household, and Married tax tables has changed.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
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/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 30 percent of the additional Federal tax withheld and added to the State tax withholdings. |
Withholding Formula (Effective Pay Period 03, 2019)
- Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contribution from the gross biweekly wages.
- 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.
- Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute taxable income:
Exemption Allowance = $4,250 x number of exemptions
- Apply the taxable income computed in step 5 to the following table(s) to determine the annual Vermont tax withholding:
Single or Head of Household Tax Withholding Table
If the Amount of Taxable Income Is:
The Amount of Vermont Tax Withholding Should Be:
Over $0 but not over $3,075
$0.00
Over $3,075 but not over $42,675
$0.00 plus 3.35% of excess over $3,075
Over $42,675 but not over $99,075
$1,326.60 plus 6.60% of excess over $42,675
Over $99,075 but not over $203,275
$5,049.00 plus 7.60% of excess over $99,075
Over $203,275
$12,968.20 plus 8.75% of excess over $203,275
Married Tax Withholding Table
If the Amount of Taxable Income Is:
The Amount of Vermont Tax Withholding Should Be:
Over $0 but not over $9,225
$0.00
Over $9,225 but not over $75,375
$0.00 plus 3.35% of excess over $9,225
Over $75,375 but not over $169,175
$2,216.03 plus 6.60% of excess over $75,375
Over $169,175 but not over $252,975
$8,406.83 plus 7.60% of excess over $169,175
Over $252,975
$14,775.63 plus 8.75% of excess over $252,975
- Divide the annual tax withholding calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly Vermont tax withholding. If Federal exemptions were used and there are additional Federal withholdings, proceed to step 8.
- If Federal exemptions were used and additional Federal tax was withheld, multiply the additional amount by 30 percent and add that to the result of step 7 to obtain the biweekly Vermont tax withholding.
Resources
To view the updated tax formula, go to the
page from the drop-down menu on the National Finance Center (NFC) homepage. Select the tab and select from the menu to launch the tax map. Select the desired State from the map provided for the formula.Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at
or via the customer service portal.