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 HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

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