The federal minimum wage is $7.25 per hour; Vermont’s minimum pay in 2021 is $11.75 per hour, or $0.90 more. Employers must pay their employees at least the minimum wage, which is set annually by the Vermont Department of Labor. Some employees, such as those who are tipped, may be exempt from the minimum wage requirement and receive a lesser rate if the sum of their hourly pay and tips is equal to or more than the minimum wage rate.
Compared to several other states, Vermont’s state sales tax, which is in addition to the minimum wage, is comparatively modest at 6%. In actuality, the state of Delaware has the lowest sales tax rate—0%—while Oregon, Montana, and New Hampshire have no sales tax at all. Contrarily, several states have higher sales tax rates than Vermont, such as California, where the rate is 7.25%.
There are no municipal sales taxes in Vermont, so the state’s sales tax rate applies equally to all towns and cities, regardless of their local sales tax rates. Other states, like Louisiana, which has a state sales tax rate of 4.45% but permits cities to apply an additional sales tax of up to 7.75%, do not have this restriction.
Some states do not impose any taxes on Social Security payouts at all. Alabama, Hawaii, Illinois, Mississippi, New Hampshire, and Pennsylvania are some of these states. However, only those with an adjusted gross income of $45,000 or more and married couples with a combined income of $60,000 or more are subject to Social Security taxes in Vermont.
The state with the highest taxes in 2021, in terms of overall tax burden, is New York. New York has the highest total tax burden, which includes state and local income taxes, property taxes, sales and excise taxes, according to a WalletHub research. Alaska, on the other hand, has the nation’s lowest overall tax burden.
In conclusion, Vermont’s minimum wage will be $11.75 an hour in 2021, and the state’s sales tax is only 6%. Benefits from Social Security are subject to taxation in Vermont, but only for higher-earning individuals and couples. The overall tax burden in Vermont is not the highest in the nation because there are no local sales taxes in the state.
The article “Vermont’s Minimum Wage 2021 and Other Tax Facts” omits mentioning the state with the highest sales tax in 2021, which is unfortunate. It focuses on facts pertaining to the state of Vermont about taxes, such as the minimum wage, property taxes, income taxes, and other taxes.
New York, Hawaii, Vermont, Maine, and Minnesota are the five states in the union with the highest state taxes, according to the Tax Foundation.