Minimum wage in Vermont, 2000–2026
- Minimum wage in 2026
$14.42 an hour1
In force since Jan 1, 2026.
- On January 1, 2027
Not announced yet2
Not announced by Oct 26, 2026.
- Tipped employees
$7.21 an hour in cash3
Employers may count up to $7.21 an hour of tips toward the minimum wage. Tipped: more than $120 a month in tips.
- Who it covers
Applicable to employers of two or more employees4
- Overtime
Premium pay after 40 hours a week4
The Vermont minimum wage rose from $5.75 in 2000 to $14.42 in 2026
Line chart of the Vermont minimum wage against the federal minimum: $5.75 in 2000, $8.06 in 2010, $10.96 in 2020, and $14.42 in 2026. The federal minimum was $5.15 in 2000 and $7.25 in 2026.
What a full-time minimum-wage employee costs in Vermont
At $14.42 an hour for 40 hours a week, a new employer with 10 staff pays $29,994 in wages and $2,970 on top (9.9%) in payroll taxes and workers' comp.
- Wages (2,080 paid hours a year)
- $29,994
- Social Security (employer share)6.2%6 of $29,994
- $1,860
- Medicare (employer share)1.45%7 of $29,994
- $435
- Workers' compensation (benchmark index rate)$1.60 per $100 of payroll10
- $480
- Total a year
- $32,964
If you also offer single health coverage, the average employer here pays about $7,817 more a year: a $10,004 average premium11 less $2,187 paid by the employee11.
Frequently asked questions
What is the minimum wage in Vermont in 2026?
$14.42 an hour since Jan 1, 2026: $29,994 a year at full time.
What will the minimum wage be in Vermont in 2027?
$14.42 an hour in 2026; Vermont had not published its 2027 rate by Oct 26, 2026.
What is the minimum wage for tipped employees in Vermont?
$7.21 an hour in cash, with up to $7.21 of tips counted toward Vermont's $14.42.
How much does a minimum-wage employee cost an employer in Vermont?
About $32,964 a year full time at $14.42: $29,994 of pay plus $2,970 on top, $2,491 in payroll taxes and $480 in workers' comp, before any health coverage.
How has the Vermont minimum wage changed since 2000?
The Vermont minimum wage rose from $5.75 in 2000 to $14.42 in 2026. On the way: $8.06 in 2010 and $10.96 in 2020, per the U.S. DOL.
Which employers must pay the Vermont minimum wage?
Applicable to employers of two or more employees.
More minimum wage and employer cost pages
Employer costs in Vermont
States with a similar minimum wage
Data and rules for every state
Sources
The 11 pages this page's facts come from, with the day we last checked each one. The numbers beside the figures above link here.
Quotes from the sources
- Vermont Department of Labor labor.vermont.gov/press-release/vermont-department-labor-announces-minimum-wage-increase-starting-january-2026“Beginning January 1, 2026, the State's minimum wage will increase from $14.01 to $14.42 per hour”
- Vermont General Assembly (21 V.S.A. § 384) legislature.vermont.gov/statutes/section/21/005/00384“on each subsequent January 1, the minimum wage rate shall be increased by five percent or the percentage increase of the Consumer Price Index”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/state/minimum-wage/tipped“Definition of Tipped Employee by Minimum Tips received (monthly unless otherwise specified) … State requires employers to pay tipped employees a minimum cash wage above the minimum cash wage required under the federal Fair Labor Standards Act ($2.13/hour) … Vermont $14.42 50% of the applicable minimum wage ($7.21) $7.21 More than $120”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/minimum-wage/state“Vermont … Basic Minimum Rate (per hour): $14.42 … Applicable to employers of two or more employees … Premium Pay After Designated Hours 1 : Weekly - 40 … The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.”
- U.S. Department of Labor, Wage and Hour Division Changes in Basic Minimum Wages in Non-Farm Employment Under State Law: Selected Years 1968 to 2024“Vermont 1.40 1.60 1.60 2.30 2.90 3.10 3.35 … Vermont 3.55 3.85 4.25 4.25 4.75(e) 5.00(e) 5.25(e) … Vermont 5.75(e) 6.25(e) 6.25(e) 6.25(e) 6.75(e) 7.00(e) 7.25 … Vermont 7.53(e) 7.68(e) 8.06(e) 8.06(e) 8.15(e) 8.46(e) 8.60(e) … Vermont 8.73(e) 9.15(e) 9.60(e) 10.00(e) 10.50(e) 10.96(e) … Vermont 10.96(e) 11.75 12.55 13.18 13.67” “Federal (FLSA) $1.15 & $1.60 $1.30 & $1.60 $1.60 $2.20 & $2.30 $2.90 $3.10 $3.35 … Federal (FLSA) $3.35 $3.80 $4.25 $4.25 $4.25 $4.75 $5.15 … Federal (FLSA) $5.15 $5.15 $5.15 $5.15 $5.15 $5.15 5.15 … Federal (FLSA) 5.15 5.85 6.55 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25” “Rates applicable to employers of two or more.”
- Internal Revenue Service IRS Publication 15 (Circular E), Employer's Tax Guide“For 2026, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total).”
- Social Security Administration ssa.gov/oact/cola/cbb.html“Tax rates under the HI program are 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons.”
- Internal Revenue Service Topic no. 759, Form 940 – FUTA tax (IRS)“If you're entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%.” “FUTA tax rate: The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year.”
- U.S. Department of Labor, Employment and Training Administration oui.doleta.gov/unemploy/content/sigpros/2020-2029/January2026.pdf“New employer rate shown is the base rate. … VT … 1.00%” “VT … $15,400”
- Oregon Department of Consumer and Business Services oregon.gov/dcbs/reports/cost/Pages/premium-index-rates.aspx“Premium index rate: Over $1.50 … State Index rate Percent of study median … 5 6 Vermont 1.60 147%”
- Agency for Healthcare Research and Quality (MEPS-IC) meps.ahrq.gov/mepsweb/data_stats/summ_tables/insr/state/series_2/2025/ic25_iia_f.pdf“Table II.C.1 Average total single premium (in dollars) per enrolled employee … Division and State Total … Vermont 10,004 11,181 11,910 10,548 9,956 9,084 11,460 9,452” “Table II.C.2 Average total employee contribution (in dollars) per enrolled employee for single coverage … Division and State Total … Vermont 2,187 -- 2,318 2,265 2,279 1,847 2,622 2,022”