Vermont Bonus Tax Calculator
Data compiled and maintained by Edmond Daher · Updated 2026-08-02
Vermont bonus tax calculator
2025 standard deduction (2026 pending). Vermont's tax rates for 2026 are current, but it has not published its 2026 standard deduction yet, so this page subtracts its 2025 amount. We update this page when the state publishes.
Wondering why your Vermont bonus shrank so much? It's withholding, a flat prepayment, not a higher rate on bonuses. Vermont adds 30% of the federal amount (not of the bonus) on top of the 22% federal prepayment and FICA. Run your numbers to see the "now" withholding next to the "at tax time" total, and how much comes back or is still owed. Everything runs in your browser.
Quick answer: a separately paid bonus in Vermont is withheld at a flat 22% for federal income tax plus 30% of that federal amount for Vermont, plus 7.65% FICA. That's a prepayment, not your final tax — the bonus is really taxed at your marginal rate when you file, and the calculator above shows the refund or amount you'll owe.
Estimate only, not tax advice — terms.
What Vermont holds back on a $5,000, $25,000, or $100,000 bonus
What's held back from three bonus sizes in Vermont (single filer, $70,000 salary):
| Bonus | Federal | Vermont | FICA | Total | % of bonus |
|---|---|---|---|---|---|
| $5,000 | $1,100 | $330 | $383 | $1,813 | 36.3% |
| $25,000 | $5,500 | $1,650 | $1,913 | $9,063 | 36.3% |
| $100,000 | $22,000 | $6,600 | $7,650 | $36,250 | 36.3% |
The share changes because Social Security ends at the wage base; the income tax reconciles on your return either way.
Vermont bonus withholding, piece by piece
Federal withholding on a bonus. The IRS default holds back a flat 22% for federal income tax when the bonus is separate from your regular pay (IRS Pub 15). It rises to a mandatory 37% on any bonus dollars past $1,000,000 in a year — the third bracket's rate as a default, not a bonus tax.
Vermont: 30% of the federal amount. Vermont's supplemental withholding is 30% of the federal income tax withheld on the bonus, not a percent of the bonus — about 6.6% of the bonus on the flat 22% federal (6% for nonqualified deferred comp), per Vermont Department of Taxes GB-1210.
The 7.65% FICA slice doesn't true up. Social Security and Medicare are genuine taxes on a bonus, not a prepayment. That's why the calculator shows the same FICA under "withheld now" and "what it really costs" — there's nothing to refund; only the income-tax portion trues up.
Working out a whole paycheck? See the Vermont paycheck calculator.
Vermont vs. New Hampshire, New York and Massachusetts: bonus withholding compared
Side by side, a $70,000 earner's $10,000 bonus in Vermont versus New Hampshire, New York and Massachusetts:
| State | Bonus method | State withheld | Total withheld |
|---|---|---|---|
| Vermont | 30% of federal | $660 | $3,625 |
| New Hampshire | no state income tax | $0 | $2,965 |
| New York | flat 11.7% | $1,170 | $4,135 |
| Massachusetts | aggregate method | $500 | $3,465 |
Total = federal 22% + state + FICA. Illustrative single-filer figures; the income tax you actually owe trues up at filing.
A $9,000 bonus on a $215,000 Vermont salary: withheld vs. actually owed
Say you earn $215,000 in Vermont and your employer cuts a separate $9,000 bonus check:
- On the check: the employer holds back $1,980 for federal, $594 Vermont, and $211 for FICA — $2,786 in all (30.9% of the bonus), leaving about $6,215.
- The real bill: at filing the bonus is taxed roughly $3,334 in income tax (federal $2,650 + Vermont $684), with the identical $211 FICA on top.
- The gap: the 22% withheld falls short of your real rate, leaving about $760 to owe at filing. The $211 FICA doesn't move — that part is owed no matter what.
A single-filer illustration only — drop your real salary, bonus, and filing status into the tool above for your figure.
Why your Vermont bonus looks over-taxed — and mostly isn't
Nothing about a bonus changes the tax rate — it changes the withholding. The bonus is stacked onto your other income and taxed at your marginal rate, not at a bonus-only rate. Most people's real rate is under 22%, so the extra returns; higher earners above 22% owe more. Worked out here on a $9,000 bonus, you'd still owe about $760 when you file. Only FICA (7.65%) is a true tax that never returns.
Vermont bonus tax FAQ
Why is Vermont's bonus withholding based on the federal amount?
Vermont sets it at 30% of the federal income tax withheld on the bonus, rather than a percent of the bonus. On the flat 22% federal, that's about 6.6% of the bonus.
Are bonuses taxed at a higher rate in Vermont?
No. A bonus is ordinary income taxed at your normal marginal rate when you file; the flat 22% withheld is a prepayment, not a tax rate.
Does my Vermont bonus ever come back at tax time?
The income-tax part can. If the flat 22% over-withheld relative to your real marginal rate, the excess is refunded; if you're a high earner above 22%, you pay more. FICA is never refunded.
How much is withheld from a bonus in Vermont for 2026?
On a separately paid bonus, Vermont takes 30% of the federal withholding, the federal side takes a flat 22% (37% beyond $1,000,000/yr), and FICA takes 7.65%. Those are withholding rates that settle up when you file — not a final tax.
Bonus tax calculators near Vermont
Vermont paycheck calculator · all state bonus tax calculators →
Sources
- IRS Publication 15 (2026) — Supplemental Wages (flat 22% / 37% above $1M)
- Vermont supplemental rate: Vermont Department of Taxes GB-1210 (2026 Withholding Instructions and Tables)