Individuals can file Vermont income taxes by mail or through e-file, but they must file by April 15 of the year in which they are due unless they request extensions, according to the Vermont Department of Taxes. Vermont encourages filers to e-File their returns. The state publishes its tax forms and instructions for completing them on the Department of Taxes' website, and in Vermont, individuals file Form IN-111, Income Tax Return.
As of 2015, Vermont uses a marginal tax rate system with five different rates, which range from 3.55 percent to 8.95 percent, according to Bankrate.com. The intermediate rates are 6.8 percent, 7.8 percent and 8.8 percent. Income brackets vary by filing status, with higher income limits for each rate except the highest applying to married filers. Taxable income up to $36,900 for single filers and $61,600 for married filers is taxed at the lowest rate, and only income in excess of $405,101 is taxed at the highest rate.
Among states that impose income taxes, Vermont charges the seventh-highest rate, as the Tax Foundation reports. As of 2014, 43 of the 50 states and Washington, D.C., impose income taxes. Vermont ranks 23rd in total state and local tax dollars collected per person in spite of its comparatively high income tax rate, having collected $956 per person in 2012.