Tax rate used in calculating Vermont state tax for year 2008

Withholding Formula (Effective Pay Period 12, 2007)

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:

Exemption Allowance = $3,400 x Number of Exemptions

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

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	$ 2,650	$ 0.00	plus	0.00%	$ 0
2,650	33,520	0.00	plus	3.60%	2,650
33,520	77,075	1,111.32	plus	7.20%	33,520
77,075	162,800	4,247.28	plus	8.50%	77,075
162,800	351,650	11,533.91	plus	9.00%	162,800
351,650	and over	28,530.41	plus	9.50%	351,650




Married
If the Amount of Taxable Income Is:		The Amount of Vermont Tax Withholding Should Be:
Over:	But Not Over:				Of Excess Over:
$ 0	$ 8,000	$ 0.00	plus	0.00%	$ 0
8,000	58,900	0.00	plus	3.60%	8,000
58,900	133,800	1,832.40	plus	7.20%	58,900
133,800	203,150	7,225.20	plus	8.50%	133,800
203,150	357,000	13,119.95	plus	9.00%	203,150
357,000	and over	26,966.45	plus	9.50%	357,000



7. 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.
   
   
8. If additional Federal tax was withheld, multiply the additional amount by 27 percent and add that to the result of step 7 to obtain the biweekly Vermont tax withholding.