Vermont Payroll Taxes for Employers (2026): SUTA and State Programs
Last updated: 2026-10-12 · 2026 rates checked against Vermont Department of Labor's own pages and the other official sources below
Vermont employers pay state unemployment tax (SUTA) on the first $15,400 of each employee's wages in 2026, and new employers pay 1% — at most $154.00 per employee for the year. Vermont Child Care Contribution can add to the employer's cost in 2026, depending on headcount (details below). Every Vermont employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).
What will payroll taxes cost me in Vermont?
Enter your headcount and average pay to see the employer's share of Vermont and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.
Vermont employer payroll tax estimator · 2026
Runs in your browser · nothing is sent anywhere| Tax | Per year |
|---|---|
Vermont unemployment (SUTA) 1% × first $15,400 per employee | $770 |
Federal unemployment (FUTA) 0.6% × first $7,000 after the full state credit | $210 |
Social Security (employer half) 6.2% × first $184,500 | $15,500 |
Medicare (employer half) 1.45% of all wages | $3,625 |
Vermont Child Care Contribution 0.33% employer share — 0.44% of wages; employer pays at least 75% | $825 |
| Total employer taxes | $20,930 |
| Per employee | $4,186 |
Assumes every employee earns the average and works in Vermont all year. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.
Vermont unemployment insurance tax (SUTA) in 2026
- 2026 taxable wage base
- $15,400 per employee (21st highest of 51)
- New-employer rate
- 1%
- How the new-employer rate works
- 1% for most new employers (rate year from July 1, 2026); out-of-state construction 1.9%–4.0%.
- Most a new employer pays per employee
- $154.00 (1% × $15,400)
- Experience-rated range (2026, as published)
- 0.4% to 5.4%
- 2025 average employer rate
- 1.94% of taxable wages (U.S. DOL)
- Employee contribution
- None — employer-paid only
Register with Vermont Department of Labor when you first pay wages in Vermont; you get an account number for quarterly wage reports and tax payments.
Paid leave, disability and other Vermont payroll programs
- Vermont Child Care Contribution0.44% of wages; employer pays at least 75%0.44% payroll tax on all Vermont wages since July 1, 2024. Employers may withhold up to 25% (0.11%) from employees and pay the rest (0.33% minimum).
Federal payroll taxes every Vermont employer pays
- Social Security: 6.2% from you and 6.2% withheld from the employee, on wages up to $184,500 in 2026.
- Medicare: 1.45% each on all wages; withhold an extra 0.9% (employee only) on wages over $200,000.
- FUTA: 6.0% of the first $7,000 per employee, less up to 5.4% credit for Vermont unemployment tax paid on time = 0.6%, or $42 per employee.
- Federal income tax withholding from each paycheck based on the employee's Form W-4.
Next for Vermont employers: Vermont paycheck calculator (employee withholding) · Vermont new hire reporting · Vermont payday & final paycheck rules · Vermont workers' comp · full payroll cost calculator
Vermont payroll tax FAQ
What is the Vermont SUTA rate for new employers in 2026?
1%. 1% for most new employers (rate year from July 1, 2026); out-of-state construction 1.9%–4.0%.
What is the Vermont SUTA wage base for 2026?
$15,400 per employee. Once an employee's 2026 wages pass that amount, you stop paying Vermont unemployment tax on them for the rest of the year. That is the 21st highest wage base of the 50 states and DC (the federal FUTA base is $7,000).
Do employees pay unemployment tax in Vermont?
No. In Vermont unemployment tax is paid only by the employer; it can't be deducted from pay. Only Alaska, New Jersey and Pennsylvania collect an employee share.
What other payroll taxes do Vermont employers pay?
Besides unemployment tax: Vermont Child Care Contribution: 0.44% payroll tax on all Vermont wages since July 1, 2024. Employers may withhold up to 25% (0.11%) from employees and pay the rest (0.33% minimum).
How much FUTA do Vermont employers pay?
0.6% of the first $7,000 of each employee's wages — $42 per employee per year — after the full 5.4% credit for paying Vermont unemployment tax on time. Vermont is not a credit-reduction state for 2026.
How does my Vermont SUTA rate change after the first years?
New employers keep the new-employer rate until they have enough history to be experience-rated (the timing is set by state law). After that, Vermont Department of Labor assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 0.4% to 5.4%. Use the rate on your annual rate notice. The 2025 average employer rate in Vermont was 1.94% of taxable wages.
Official Sources
Figures checked against these sources on 2026-10-12- Vermont DOL — unemployment tax rates — UI wage base and rates
- Vermont DOL — taxable wage information — UI wage base and rates
- Vermont Dept. of Taxes — Child Care Contribution — Vermont Child Care Contribution
- IRS Publication 15 (2026), Employer's Tax Guide
- IRS Topic 759, Form 940 — FUTA
- U.S. DOL ETA — Employer contribution rates, CY 2025
Related Resources on This Site
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- Business LicenseVermont business license requirements
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- LLChow to form an LLC in Vermont
- FormationVermont annual report due date, fee & franchise tax
- Sales TaxVermont sales tax rates & rules
- Minimum WageVermont minimum wage
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- 1099 vs W-21099 vs W-2 — when to use each
- No Income Taxno income tax states for businesses
- Minimum Wageminimum wage by state
Payroll taxes in other states
All states in one table, plus federal deposit rules and deadlines →
General information, not tax advice. Rates change every year; confirm yours on the notice from Vermont Department of Labor before filing.