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How to Calculate 2022 Vermont State Income Tax by Using State Income Tax Table

1. Find your income exemptions

2. Find your pretax deductions, including 401K, flexible account contributions ...

3. Find your gross income

4. Check the 2022 Vermont state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.

Learn more about the in house payroll tax solution for Vermont small businesses here.
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Vermont State Tax Tables

Tax rate used in calculating Vermont state tax for year 2022

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. Additional withholdings will be held at 27 percent of the Federal tax withheld and added to the state tax withholdings.


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Withholding Formula >(Vermont Effective 2022)<
  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 (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.

  4. Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.

  5. Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute taxable income:
  6. Exemption Allowance = >$4,500< x Number of Exemptions

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

  8. Tax Withholding Table
    Single

    If the Amount of
    Taxable Income Is:

    The Amount of Vermont
    Tax Withholding Should Be:

    Over:

    But Not
    Over:

    Of Excess Over:

    $ 0
    $ 3,250
    $ 0.00
    plus
    0.00%
    $ 0
    3,250
    >45,400
    0.00
    plus
    3.35%
    3,250
    45,400
    105,450
    >1,412.03
    plus
    6.60%
    45,400
    105,450
    216,400
    5,375.33
    plus
    7.60%
    105,450
    216,400
    and over
    13,807.53
    plus
    8.75%
    216,400


    Married

    If the Amount of
    Taxable Income Is:

    The Amount of Vermont
    Tax Withholding Should Be:


    Over:

    But Not
    Over:

    Of Excess
    Over:

    $ 0
    $ 9,788
    $ 0.00
    plus
    0.00%
    $ 0
    9,788
    >80,238
    0.00
    plus
    3.35%
    9,788
    80,238
    180,088
    >2,360.08
    plus
    6.60%
    80,238
    180,088
    269,288
    8,950.18
    plus
    7.60%
    180,088
    269,288
    and over
    15,729.38
    plus
    8.75%
    269,288

  9. Divide the annual tax withholding by 26 to obtain the biweekly Vermont tax withholding. If Federal exemptions were used and there are additional withholdings, proceed to step 8.

  10. If additional Federal tax was withheld, multiply the additional amount by 26 percent and add that to the result of step 7 to obtain the biweekly Vermont tax withholding.
 

More Payroll Information for Vermont Small Business

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  • Quick Start Guide for New Payroll Software Customers

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  • How to set up payroll tax options for church and non-profits

  • How to handle paychecks for both employees and contractors

  • How to file tax forms

  • How to enter the paychecks for after the fact payroll