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Vermont has a top income tax rate of 8.75%, mandatory earned sick time, and a CPI-indexed minimum wage. Burlington is a small but growing tech and healthcare hub. Rippling handles VT Department of Taxes, VDOL, and sick leave compliance.
Vermont is a small New England economy with strengths in tourism, agriculture, education, healthcare, and a growing technology sector in Burlington. Vermont payroll is defined by a high progressive income tax (top rate 8.75%), mandatory earned sick time, and a CPI-indexed minimum wage. Vermont has no state-mandated paid family leave for private employers (discussions ongoing) but does require unpaid parental leave for larger employers.
Rippling’s Vermont payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| VT SUI (VDOL) | New employer 1.0% | On first $14,300 of wages (2024) |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Required for most employers |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| Vermont State Income Tax | 3.35%–8.75% | 4-bracket progressive; top rate 8.75% on income above $213,150 single (2024) |
| Vermont Income (Single, 2024) | VT Rate |
|---|---|
| Up to $45,400 | 3.35% |
| $45,401–$110,050 | 6.60% |
| $110,051–$213,150 | 7.60% |
| Above $213,150 | 8.75% |
VT withholding remitted to VT Department of Taxes. Annual WHT-434 reconciliation.
Final Pay: Vermont requires final pay on the next regularly scheduled payday. Accrued vacation: Vermont Wage Payment Act treats promised vacation as wages if the employer’s policy provides for payout.
Vermont has a 4-bracket progressive income tax: 3.35% (up to $45,400); 6.60% ($45,401–$110,050); 7.60% ($110,051–$213,150); and 8.75% above $213,150 for single filers (2024). Vermont’s top rate of 8.75% is among the highest in the Northeast outside of California and New York. Rippling applies Vermont withholding tables.
Vermont’s Parental and Family Leave Act (VPFLA) requires employers with 10+ employees to provide up to 12 weeks of unpaid, job-protected leave for the birth or adoption of a child. Separately, Vermont passed a voluntary Paid Family Leave program for state employees, but private employers are not currently mandated to provide paid family leave. Vermont has been discussing expanding to a mandatory private employer paid leave program.
Vermont’s minimum wage is $13.67/hour (January 2024), indexed annually to CPI (up to 5%). Vermont has its own minimum above the federal floor. Burlington does not have a separate local minimum.
Vermont requires employers to provide employees with 40 hours of earned sick time per year (1 hour per 52 hours worked). Employers with fewer than 5 employees must provide 24 hours. Sick leave may be used for the employee’s own illness, care for a family member, or domestic violence. Rippling tracks Vermont sick leave accrual.
