Vermont minimum wage in 2026 (and 2027)

Coverage, tipped workers and the one-employee exception

The state rate applies to employers with two or more employees. A business with a single employee is outside Vermont's law, but if the job is covered by the federal Fair Labor Standards Act, the federal $7.25 still applies.

Service and tipped employees, meaning workers who receive more than $120 a month in tips, can be paid a cash wage of $7.21, half the full minimum. Tips must lift them to at least $14.42 an hour, or you cover the difference. Overtime is 1.5 times the regular rate after 40 hours, which works out to $21.63 an hour at the minimum.

2027: no confirmed figure yet

Our state data has no 2027 entry for Vermont, and that blank means not yet confirmed, not frozen. Check the Vermont Department of Labor before you set January 2027 pay, and make sure your payroll provider loads any new rate once it is published. Because the tipped cash wage is set at half the minimum, a change to $14.42 would move the $7.21 figure as well.

Pay at $14.42: week, month, year

• Week (40 hours): $576.80
• Year (2,080 hours): $29,993.60
• Month (year / 12): $2,499.47

Vermont pays weekly by default. You can switch to biweekly or semimonthly paydays after giving employees notice.

Vermont employer cost: wages plus three state and federal lines

The Child Care Contribution has been mandatory since July 1, 2024: 0.44% of all Vermont wages, which is $131.97 on this worker. You must pay at least 0.33% and may withhold up to 0.11% ($32.99) from the employee. It is reported quarterly with withholding on Form WHT-436. Vermont's paid family and medical leave plan is voluntary for private employers, so it adds no mandatory tax. Workers' compensation coverage is required and comes on top. Try other wages in the employee cost calculator.

Vermont next to New Hampshire and New York

Vermont pays $7.17 an hour more than New Hampshire's $7.25. Upstate New York pays $16.00 and Massachusetts $15.00. Brattleboro and White River Junction employers compete with the lower New Hampshire rate; Bennington competes with New York's higher one. All rates are in the 2026 minimum wage table.

Running Vermont payroll correctly

A fired employee must be paid within 72 hours. One who quits is paid on the last regular payday, or the following Friday if there is none. The Vermont payroll tax page covers registration with the Department of Labor and Department of Taxes.

Check that your payroll provider files the Child Care Contribution. Gusto Simple is priced at $49 a month plus $6 for each employee (checked October 16, 2026); our payroll software comparison lists others.