Personal Exemption
The Vermont personal exemption is $5,100 for tax year 2024.
Standard Deduction
The Vermont Standard Deduction increases by an average of $583. For tax year 2024, it is $14,850 for Married/CU Filing Jointly or Qualifying Widow(er), $7,400 for Single or Married/CU Filing Separately, $11,100 for Head of Household, and an additional $1,200 for individuals 65 and older and/or blind.
Child Tax Credit Payments and Economic Impact Payments (Federal stimulus checks/payments)
Child Tax Credit, Advance Child Tax Credit, and Economic Impact Payments sent to taxpayers by the federal government are not taxable and are not included as Household Income.
Unemployment Benefits
Unemployment Benefits and Extended Benefits are taxable income.
Remote Work
If you are a non-resident but you are temporarily living and working in Vermont, you have an obligation to pay Vermont income taxes on the income earned while you were living and performing work in Vermont, regardless of your employer’s location.
Household Income
Household Income for the purpose of Property Tax Credit includes all income, taxable and nontaxable, of everyone who resided with you at any time during the tax year, including family and non-related individuals. If an individual resided with you for fewer than 12 months, include that individual’s income only for the time they resided with you.
Household Income does not include the federal Child Tax Credit.
Social Security Benefits Exemption
The Income Tax exemption for Social Security benefits tax depends on your filing status and adjusted gross income. Use the Social Security Exemption Worksheet to determine if you qualify for a full or partial exemption.
To file, use Schedule IN-112, Vermont Tax Adjustments and Credits.
Child Care Contribution
Under Act 76 of 2023, as of July 1, 2024, net self-employment income earned in Vermont is subject to the Child Care Contribution tax of 0.11%. Individuals with self-employment income report and remit payments to the Department of Taxes with their Personal Income Tax Returns.
Wage earners whose employers do not pay the full required Child Care Contribution (CCC) on their behalf will see a deduction for the CCC reported on the W-2 they receive from their employer.
