VERMONT CAPITAL GAINS TAX · TAX YEAR 2026
Vermont capital gains tax calculator
Vermont excludes the first $5,000 of capital gain, or 40% of gain on some assets held more than three years, and taxes the rest as ordinary income at rates from 3.35% to 8.75%. On a $50,000 long-term gain with $75,000 of wages, a single filer owes $2,970 of Vermont tax and $7,500 of federal income tax, $10,470 in all, and keeps $39,530.
Tax on your gain
- Total tax on the gain
- $10,470.00
- Federal income tax
- $7,500.00
- Net investment income tax
- $0.00
- Vermont tax
- $2,970.00
- After-tax gain
- $39,530.00
- Effective rate
- 20.94%
- Gain Vermont excludes
- $5,000.00
Vermont tax by size of gain
What a single filer with $75,000 of wages owes on a long-term gain, and the state tax if the same gain were short-term. Federal tax includes the net investment income tax.
| Gain | Federal tax | State tax | State tax if short-term |
|---|---|---|---|
| $10,000 | $1,500 | $330 | $660 |
| $50,000 | $7,500 | $2,970 | $3,300 |
| $100,000 | $15,000 | $6,609 | $6,989 |
| $250,000 | $42,250 | $18,589 | $19,027 |
| $1,000,000 | $208,920 | $84,214 | $84,652 |
Vermont capital gains tax questions
Does Vermont tax capital gains?
Yes. Vermont excludes the first $5,000 of capital gain, or 40% of gain on some assets held more than three years, and taxes the rest as ordinary income at rates from 3.35% to 8.75%.
How much Vermont tax is due on a capital gain?
A single filer with $75,000 of wages owes $2,970 of Vermont tax on a $50,000 long-term gain, 5.94% of the gain, and $18,589, 7.44%, on a $250,000 gain. Federal tax on the same gains is $7,500 and $42,250.
Does Vermont tax short-term capital gains differently?
Yes. A $10,000 short-term gain owes $660 of Vermont tax, against $330 on a long-term gain. Federal tax on it is $2,200, against $1,500.
How much capital gain does Vermont exclude?
Either a flat $5,000 or 40% of gain on qualifying assets held more than three years, not both, and never more than 40% of federal taxable income or $350,000. The 40% exclusion for assets held more than three years does not cover publicly traded stocks, bonds or a home.
What the calculator leaves out
- The 40% exclusion for assets held more than three years does not cover publicly traded stocks, bonds or a home.
- The calculator gives the flat $5,000 exclusion to long-term gains only.
Federal tax stacks the gain on wages after the 2026 standard deduction, taxes a long-term gain at the long-term capital gains rates and a short-term gain at the ordinary brackets, and adds the net investment income tax. The gain is the only investment income. Capital losses and carryovers, qualified dividends, the collectibles and section 1250 rates, the alternative minimum tax and credits are left out; enter a home sale's gain after any federal exclusion.