Vermont (VT) – 2021


Minimum WageVermontFederal
Minimum Wage$11.75$7.25
Minimum Cash Wage (Tipped Employee)$5.88$2.13
Maximum Tip Credit$5.87$5.12
State Income TaxVermontFederal
Wage WithholdingTables
Supplemental Wage / Bonus Rate30% of Federal Tax
Unemployment InsuranceVermontFederal
Maximum 2021 Taxable Earnings (Decreased from $16,100 in 2020)$14,100
Employee 2021 DeductionNone
Employer FY2021 Tax Rates0.4 – 5.4%
Standard FY2021 New Employer Rate1.00%
Voluntary Contribution PermittedNo

Federal (FED) – 2021

Minimum WageFederal
Minimum Wage$7.25
Minimum Cash Wage (Tipped Employee)$2.13
Maximum Tip Credit$5.12
Youth Minimum Wage$4.25
Maximum Taxable EarningsNo Limit
Medicare Rate1.45%
Additional Medicare Tax Withholding on Wages > $200,000 (No Employer Match)0.90%
Maximum Taxable Earnings (Increased from $137,700 in 2020)$142,800
Employee / Employer Tax Rate (Unchanged from 2019)6.20%
Maximum Taxable Earnings$7,000
Percent of Taxable Wages6.00%
Maximum Credit5.40%
Normal Net Tax0.60%
Health Savings AccountsFederal
Self-Only Contribution Limit (Employee / Employer) (Increased from $3,550 in 2020)$3,600
Family Contribution Limit (Employee / Employer) (Increased from $7,100 in 2020)$7,200
Catch-up Contribution Limit (Employee / Employer) (Unchanged from 2020)$1,000
Pension PlansFederal
Contribution Limit – 401(k) & 403(b) plans (Unchanged from 2020)$19,500
Catch-up Contribution Limit – 401(k) & 403(b) plans (age 50 or older) (Increase from 6,000 in 2019)$6,500
Supplemental Wage / Bonus RatesFederal
Flat Rate Withholding Method (Unchanged from 2020)22%
Pay over $1 Million (Unchanged from 2020)37%

Vermont State Resources

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