Vermont Capital Gains Tax Calculator

Yes. Capital gains taxed as ordinary income. Top rate 8.75%.

For Vermont residents, the combined maximum long-term rate is approximately 28.75% — the 20% federal rate plus 8.75% Vermont state rate. High earners may also owe the 3.8% NIIT, bringing the effective top combined rate to approximately 32.55%.

For 2026, the federal long-term capital gains tax rates are 0%, 15%, and 20%, depending on your taxable income and filing status. Single filers pay 0% on income up to $49,450, 15% from $49,451 to $545,500, and 20% above $545,500. Married filing jointly pays 0% up to $98,900 and 20% above $613,700. These rates apply to assets held more than 12 months.

Short-term capital gains apply to assets held 12 months or less and are taxed at ordinary income tax rates (10%–37%). Long-term capital gains apply to assets held more than 12 months and receive preferential federal rates of 0%, 15%, or 20%. The one-year holding threshold is one of the most important distinctions in US tax law.

The NIIT is a 3.8% federal surtax on net investment income — including capital gains, dividends, and interest — for taxpayers whose Modified Adjusted Gross Income (MAGI) exceeds $200,000 for single filers or $250,000 for married filing jointly. These thresholds have not been adjusted for inflation since 2013, meaning more taxpayers are subject to the NIIT each year.

Nine states have no state-level capital gains tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington (for gains under $262,000), and Wyoming. Note that New Hampshire repealed its Interest and Dividends Tax effective January 1, 2025, making it fully tax-free on capital gains.