20 hrs/week
Vermont minimum wage 20 hours
$288/wk
$14,997/year gross
Effective January 1, 2026 · Updated 2026-07-08
Vermont Minimum Wage 2026
$14.42/hour
Current Vermont hourly minimum, tipped rates, city ordinances, scheduled increases, and official sources — for HR, payroll, and workers.
By Sammy S. · Founder · AuthorUpdated for 2026
$14.42State minimum
$29,994FT annual gross
+$7.17Above federal
—No scheduled raise
Pay at 20, 30 & 40 hours/week
Gross at $14.42/hour before taxes. Use the hourly salary calculator and US tax calculator for take-home estimates.
30 hrs/week
Vermont minimum wage 30 hours
$433/wk
$22,495/year gross
40 hrs/week
Vermont minimum wage 40 hours
$577/wk
$29,994/year gross
Annual calculation
$14.42 × 40 hrs × 52 wks = $29,994 gross/year
Overtime at 1.5× minimum is $21.63/hr. Estimate take-home with our hourly to salary calculator or Vermont tax calculator.
Compare Vermont minimum wage
See who has the higher floor — and why — versus other states.
Vermont minimum wage history (2020–2026)
January 1 rates from official U.S. Department of Labor sources — up $3.46/hr (+31.6%) since 2020.
| Year | Jan 1 rate | YoY |
|---|---|---|
| 2026 | $14.42/hr | +$0.41 |
| 2025 | $14.01/hr | +$0.34 |
| 2024 | $13.67/hr | +$0.49 |
| 2023 | $13.18/hr | +$0.63 |
| 2022 | $12.55/hr | +$0.80 |
| 2021 | $11.75/hr | +$0.79 |
| 2020 | $10.96/hr | — |
Sources: DOL WHD historical table · DOL via FRED (Jan 1 series). Rates are as of January 1 each year.
Tipped employees
Cash wage and tip credit rules for Vermont.
Tipped minimum wage$7.21/hr
Tip credit$7.21/hr
Standard minimum$14.42/hr
Tips must bring total compensation to at least $14.42/hr or the employer makes up the difference.
How Vermont's minimum wage is determined
Legislative authority
Vermont's minimum wage is set by state law — typically by the legislature or ballot measure — and enforced by the state labor agency. Federal FLSA sets a $7.25 floor; states may not go lower for covered employees.
No automatic indexing
Vermont requires new legislation (or a ballot measure) for each increase, so real wages can lag inflation until lawmakers act. CPI-indexed with 5% annual cap.
How rates are set in practice
- Proposed legislation or ballot petition to raise the wage.
- Committee review with testimony from employers, workers, and economists.
- Floor vote (and governor signature or voter approval where required).
- Effective date — often January 1 or July 1, sometimes phased over years.
The federal minimum has been $7.25 since July 24, 2009. That freeze is why states like Vermont set their own floors.
Frequently asked questions
The Vermont minimum wage is $14.42 per hour in 2026, effective January 1, 2026. Full-time (40 hrs/week, 52 weeks) equals about $29,994/year before taxes.
No. Vermont sets a higher state minimum of $14.42/hour. Employers must pay whichever rate is highest among federal, state, and applicable local laws.
At $14.42/hour working 40 hours per week for 52 weeks, an employee earns $29,994 gross per year before federal income tax, state taxes (if any), Social Security, and Medicare (FICA). Actual take-home depends on tax filing status and deductions.
The most recent increase was to $14.42/hour on January 1, 2026. No increase is currently scheduled.
The tipped cash wage in Vermont is $7.21/hour with a tip credit of up to $7.21. Total compensation including tips must equal at least $14.42/hour.
At $14.42/hour for 40 hours per week, 52 weeks per year (2,080 hours), gross annual pay is $29,994 before federal, state, and FICA taxes.
On January 1 2020, the applicable Vermont minimum wage was $10.96/hour. By January 1 2026 it was $14.42/hour — a change of +$3.46/hour (+31.6%). Rates are official U.S. DOL figures (WHD history table and DOL via FRED).
In Vermont, tipped employees earn $7.21/hour minimum cash wage (as of January 1, 2026). Employers can use a tip credit of up to $7.21; total pay including tips must meet the standard minimum of $14.42/hour.
Vermont does not automatically index its minimum wage to inflation, meaning the real purchasing power declines each year unless lawmakers vote to raise it.
At $14.42/hour in Vermont: 20 hrs/week ≈ $288/week ($14,997/year); 30 hrs/week ≈ $433/week ($22,495/year); 40 hrs/week ≈ $577/week ($29,994/year). Gross before taxes.
Some workers may be exempt depending on job duties, employer size, or industry. Exempt categories typically include outside salespeople, certain agricultural workers, and some domestic workers. Always verify whether a specific position qualifies for exemption with your state labor department or a lawyer.
Contact your state's Department of Labor or equivalent wage and hour enforcement agency. Many allow online complaint forms. The U.S. Department of Labor also accepts complaints: visit www.dol.gov or call 1-866-4-USDOL. Retaliation against workers who report violations is illegal.
The MIT Living Wage Calculator estimates that a single adult needs $24.00-$30.00/hour (varies by state) to afford housing, food, childcare, healthcare, and transportation without government assistance. Vermont's minimum wage of $14.42 is typically below this threshold, which is why many minimum wage workers receive SNAP, Medicaid, or housing assistance.
More ways to use these rates
- All states minimum wage table — compare every jurisdiction side by side
- Minimum Wage Comparisons — State vs state — who has the higher floor and why.
- City Minimum Wage Profiles — Seattle, San Francisco, Chicago, Denver, and more local floors.
- Hourly Salary Calculator — Convert $/hr to weekly, monthly, and annual pay.
- US Tax Calculator — Estimate take-home from minimum wage in your state.
- US Overtime Calculator — See OT pay when weekly hours exceed 40.
- FICA Calculator — Social Security + Medicare on every paycheck.
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