Vermont Minimum Wage After Tax 2026

Vermont Minimum Wage After Tax in 2026

A full-time Vermont worker at $14.42 an hour grosses $29,994 a year. After $1,419 in federal income tax, $2,295 in FICA and $570 in state income tax, take-home pay is about $25,710 a year, or $2,142 a month and $494 a week.

Vermont's CPI-indexed minimum wage is $14.42/hr as of January 1, 2026. With one of the lowest state income tax rates at this income level (3.35%), Vermont workers keep more per dollar earned than in many nearby states. Calculate below.

Vermont Minimum Wage 2026: Ski Resorts, CPI Indexing, and the Small State Reality

Vermont is the second least populous state in the country, with roughly 650,000 residents spread across mountainous terrain and small towns. Despite its small size, Vermont has an above-average minimum wage of $14.42 per hour in 2026, adjusted upward each year by the CPI formula embedded in state law since 2014. Vermont's approach to wage policy reflects the state's progressive political culture balanced against the economic realities of a rural, small-workforce state.

CPI Indexing: How Vermont Sets Its Annual Rate

Vermont's minimum wage law ties future increases to the Northeast Consumer Price Index, published by the Bureau of Labor Statistics. Each year, the Vermont Department of Labor calculates the applicable CPI increase and announces the new minimum wage rate in fall for the following January 1 effective date. The rate can never decrease, even in deflationary periods. This automatic mechanism has incrementally pushed Vermont's rate from $10.50 in 2020 to $14.42 in 2026 without requiring annual legislative action.

Burlington City Minimum Wage

Burlington, Vermont's largest city (and the smallest "largest city" of any US state by population), has historically maintained a city minimum wage slightly above the state rate, though as the state rate has risen through CPI indexing, the gap has narrowed. Burlington's progressive city government has been an active participant in minimum wage policy, and any city ordinance difference should be verified with the City of Burlington's Department of Planning and Zoning for the current year's applicable rate.

Agricultural Worker Exemptions

Vermont agriculture -- dairy farming, maple syrup production, apple orchards, and craft beer hops -- is central to the state's identity and rural economy. Vermont's minimum wage law includes exemptions for certain agricultural workers, particularly on small family farms and operations below specific revenue thresholds. Workers employed directly by a farmer as defined under Vermont statute may be subject to different wage rules, and the Vermont Department of Labor publishes annual guidance on which agricultural workers fall under the standard minimum wage versus agricultural exemptions. Workers in large commercial food processing operations, however, typically fall under the standard minimum wage.

Seasonal Ski Resort Economy

Vermont's ski industry is a dominant employer of minimum and near-minimum wage workers. Stowe, Killington, Sugarbush, Mad River Glen, and Okemo employ thousands of seasonal workers in lift operations, food service, ski rentals, lodging, and snow grooming. Many of these positions are minimum wage or slightly above. The seasonal nature of ski resort employment creates a distinctive economic pattern: workers may earn minimum wage from November through April, then face significantly reduced employment opportunities during the shoulder seasons unless they transition to summer tourism roles.

The concentration of seasonal employment also affects housing. Vermont ski resort communities have some of the tightest and most expensive rental markets in the state, particularly in the immediate resort vicinity. Workers at Killington or Stowe often commute from more affordable towns 20 to 45 minutes away, adding transportation costs that further reduce the effective value of their hourly wage.

Tipped Workers: $7.01 Per Hour Direct Wage

Vermont sets its tipped minimum wage at exactly 50% of the standard minimum wage. For 2026, with the standard rate at $14.42, the tipped minimum is $7.01 per hour. This 50% formula adjusts automatically whenever the standard minimum wage changes under CPI indexing, meaning tipped workers always know their floor is half the standard rate. Employers must ensure total hourly compensation from tips plus direct wages reaches $14.42 for every workweek. The Vermont Department of Labor enforces this requirement, and workers who believe they are being shortchanged can file a wage claim.

Healthcare Industry and Living Wage Context

Healthcare is Vermont's largest employment sector, driven by the University of Vermont Medical Center in Burlington and a network of critical access hospitals and community health centers throughout the state. Many entry-level healthcare support positions -- medical assistants, dietary aides, patient transport workers, environmental services staff -- earn wages at or near the minimum. Vermont's universal healthcare aspirations (the state came close to implementing a single-payer system in 2014 before cost challenges halted the effort) reflect the state's recognition that healthcare workers across the income spectrum need livable wages to sustain the system.

Vermont State Income Tax at Minimum Wage

Vermont has four income tax brackets. At the $29,141 gross income level of a full-time minimum wage worker, after Vermont's standard deduction and personal exemptions, most single filers fall in the 3.35% bracket -- the lowest rate. This makes Vermont's state income tax burden at minimum wage income one of the lowest in New England, providing a modest but meaningful advantage over neighboring states like Maine (6.5%) and Massachusetts (5%).

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