Vermont State Income Tax Withholding

Reference Number: NFC-23-1685553517
Published: May 12, 2023
Effective: Pay Period 06, 2023

Summary

The income tax withholding for the State of Vermont includes the following changes:

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:

 VT

State Tax Withholding State Code:

 50

Acceptable Exemption Form:

 W-4VT or W-4 (see the Additional Information section)

Basis for Withholding:

 Federal or State allowances (see the Additional Information section)

Acceptable Exemption Data:

 S/M, Number of allowances

TSP Deferred:

 Yes

Special Coding:

 None

Additional Information:

Employees who have not previously submitted a W-4VT and have submitted a 2020 Federal Form W-4 or later, will default to Single and zero (S00). Employees who have not previously submitted a W-4VT and have not submitted a 2020 Federal Form W-4 or later, will default to the prior to 2020 Federal Form
W-4 submission.

If the employee has elected to have additional Federal taxes withheld, then additional State withholdings will be withheld at 30 percent of the additional Federal tax withheld and added to the State tax withholdings.

Withholding Formula (Effective Pay Period 06, 2023)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Employees 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 (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute taxable income:

    Multiply the number of Allowances by $4,850
     
  6. Apply the taxable income calculated in step 5 to the following tables to determine the annual Vermont tax withholding:

Single or Head of Household Tax Withholding Table

If the Amount of Taxable Income Is:

The Amount of Tax Withholding Should Be:
Over $0 but not over $3,500 $0.00
Over $3,500 but not over $48,900 3.35% of excess over $3,500
Over $48,900 but not over $113,550 $1,520.90 plus 6.60% of excess over $48,900
Over $113,550 but not over $233,050 $5,787.80 plus 7.60% of excess over $113,550
Over $233,050 $14,869.80 plus 8.75% of excess over
$233,050

Married Tax Withholding Table
 

If the Amount of Taxable Income Is:

The Amount of Tax Withholding Should Be:
Over $0 but not over $10,538 $0.00
Over $10,538 but not over $86,388 3.35% of excess over $10,538
Over $86,388 but not over $193,938 $2,540.98 plus 6.60% of excess over $86,388
Over $193,938 but not over $289,988 $9,639.28 plus 7.60% of excess over $193,938
Over $289,988 $16,939.08 plus 8.75% of excess over $289,988
  1. Divide the annual tax withholding calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly Vermont tax withholding. If Federal allowances were used and there are additional Federal withholdings, proceed to step 8.
  2. If additional Federal tax was withheld, multiply the additional amount by 30 percent and add that to the result of step 7 to obtain the biweekly Vermont tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select U.S. Income Tax Formula from the Publications Library section to launch the tax map. Select the desired State from the map provided for the formula.
Previous Tax Bulletin

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.