Roth conversion taxes in Vermont (2026)
By Mario Bailey · Published · Last reviewed
Vermont taxes Roth conversions as ordinary income at graduated rates up to 8.75%. A conversion adds to your state taxable income in the year you convert, on top of federal tax. The table below shows the computed Vermont tax on a $50,000 conversion at three baseline income levels, using 2026 rates.
Computed example: $50,000 conversion
State tax only (federal not included), age 66, standard deduction, no other state adjustments. Computed with the same functions the calculator uses.
| Filing status | Baseline income | State tax without conversion | With $50,000 conversion | Tax on the conversion | Effective rate |
|---|---|---|---|---|---|
| Single | $40,000 | $643 | $3,092 | $2,449 | 4.9% |
| Single | $80,000 | $2,432 | $5,732 | $3,300 | 6.6% |
| Single | $150,000 | $7,243 | $11,043 | $3,800 | 7.6% |
| Married filing jointly | $40,000 | $0 | $1,621 | $1,621 | 3.2% |
| Married filing jointly | $80,000 | $1,286 | $3,369 | $2,083 | 4.2% |
| Married filing jointly | $150,000 | $4,689 | $7,989 | $3,300 | 6.6% |
Social Security and retirement income
Vermont taxes at least a portion of Social Security benefits. Conversions can also raise the federally taxable share of your benefits through the provisional income formula, so the two interact.
Vermont four-bracket structure; top rate 8.75%. Social Security: fully exempt for AGI below $60,000 single / $75,000 MFJ (full phase-out above $70,000 / $85,000). Modeled as taxable (conservative for higher-income filers; may overstate tax for filers below thresholds). Standard deduction includes $4,700 personal exemption per filer.
FAQ
Does Vermont tax Roth conversions?
Yes. Vermont taxes Roth conversions as ordinary income at graduated rates up to 8.75%. Federal tax applies on top.
Does Vermont tax Social Security benefits?
Vermont taxes at least some Social Security benefits at the state level. The federal provisional-income rules apply separately.
What is the top Vermont rate on a conversion in 2026?
8.75% at the highest marginal rate.
Model your Vermont conversion in the calculator
Rate data source: https://tax.vermont.gov/individuals/income-tax (Vermont Department of Taxes; four-bracket structure; top rate 8.75%; SS exempt below $60k/$75k AGI thresholds -- modeled as taxable)