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Vermont Withholding Tax

What is Vermont Withholding Tax?

Withholding tax is the amount of employee’s pay withheld by the employer and sent directly to the government as partial payment of state income tax.  The amount of withholding tax depends on employee’s income.  The Vermont state income tax is between 2.0%-5.75%. Therefore, the withholding tax should be similar to the state income tax range.

Employees do not need to take any action.  The employers/businesses will need to deduct the withholding tax from employee’s paycheck and submit and file the withholding tax to Vermont Dept of Revenue.

How much is Vermont Withholding Tax?

Since Vermont withholding tax withheld is used to pay for employee’s Vermont state income tax, the withholding tax should correlate with state income tax bracket.  The Vermont state income tax rate ranges from 2.0% to 5.75%.  The withholding tax should be within the state income tax rate range.

State Year  State Income Tax Rate Withholding Tax Rate
Vermont 2015 2%-5.75% 2% to 5.75%

How to File Vermont Withholding Tax?

Employees do not need to do anything.

Employers/Businesses need to register withholding tax account with Vermont Department of Revenue.  Depending the size of the company, every three months, the employers have to file a quarterly withholding reports and submit withholding tax to the Department of Revenue.  Most small businesses need to file quarterly while larger businesses need to file more frequently.

Vermont Withholding Tax Forms

Form Number Form Description
Form W-4VT  Withholding Certificate
Form WHT-436  Withholding Tax Return
Form SMWA-1 Withholding Tax Registration

How to Register for Vermont Withholding Tax?

Businesses with employees will need to register for Vermont Withholding account.

You’ll need to register with the Vermont Department of Taxes by completing the following form and mailing it to the agency at the address below in order to obtain your Withholding Account Number.

Vermont Department of Taxes
PO Box 547
Montpelier, VT 05601-0547

When to File and Deadlines for Vermont Withholding Tax Return

Generally, Vermont Withholding Tax returns have to be filed every three months, ending on March 31 (Q1), June 30 (Q2), September 30 (Q3) and December 31 (Q4). Typically, the deadline to mail Vermont Withholding Tax return is the last day of the following month.

Quarter Months Deadline
Q1 January - March April 30
Q2 April - June July 31
Q3 July - September October 31
Q4 October - December January 31

Vermont VT Withholding Tax Contacts and Address:

For more information or help on Vermont Withholding Tax, please use the contact information below

Website Vermont Dept of Revenue
Telephone 802-828-2551
Email tax.business@vermont.gov
Address Vermont Department of Taxes
P.O. Box 547
Montpelier VT 05601-0547