Vermont Wage Rules

Vermont Minimum Wage 2026

$14.42

per hour since January 1, 2026

Vermont's minimum wage is $14.42 an hour, in effect since January 1, 2026. Vermont adjusts its minimum wage for inflation; the next rate takes effect on January 1, 2027 and has not been published yet.

Reviewed by Slava Akulov, CEO & Co-Founder at Jupid · Last updated: October 2026

Hours and Rate

Up to 40. Hours over 40 in a workweek go in the overtime field.

Paid at 1.5 times the rate ($21.63 an hour).

Gross Pay at $14.42 an Hour

Weekly

$577

Monthly (average)

$2,499

Annual

$29,994

Regular pay (40 h × $14.42)$577/week
Overtime pay (0 h × $21.63)$0/week
Weeks per year52
More than the federal $7.25 minimum+$14,914/year

Gross pay before taxes. For take-home pay after federal, state and payroll taxes, use the Vermont hourly paycheck calculator.

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Vermont Minimum Wage at a Glance

2026 minimum wage

$14.42

Since January 1, 2026

Tipped cash wage

$7.21

Tip credit up to $7.21

Next change

Indexed, from Jan 1, 2027

Inflation-indexed

Overtime

Weekly

1.5 times the regular rate

Applies to employers of two or more employees.

Local Minimum Wages in Vermont

No Vermont city or town sets its own minimum wage; the state rate applies statewide.

Tipped Minimum Wage in Vermont

Employers in Vermont can pay tipped employees a cash wage of $7.21 an hour and count up to $7.21 an hour of tips toward the $14.42 minimum. If tips fall short, the employer makes up the difference. The cash wage is half the minimum wage, for service or tipped employees of hotels, motels, tourist places and restaurants who receive more than $120 a month in tips.

Cash wage

$7.21

Maximum tip credit

$7.21

Cash wage plus tips must reach

$14.42

Overtime Rules in Vermont

Overtime is due after 40 hours in a workweek, but state law exempts retail and service businesses and several other categories; federal overtime can still apply. Overtime is paid at 1.5 times the regular rate, so at the $14.42 minimum an overtime hour pays at least $21.63. To work out overtime on any hourly rate, use the overtime pay calculator.

Vermont Minimum Wage History

EffectiveHourly rate
January 1, 2026 (current)$14.42
January 1, 2025$14.01
January 1, 2024$13.67
January 1, 2023$13.18

Vermont Minimum Wage in 2027

Vermont adjusts its minimum wage for inflation; the next rate takes effect on January 1, 2027 and has not been published yet. Each January 1 the rate rises by the smaller of 5% or the CPI-U, and it never falls. The Department of Labor announced the 2026 rate on October 6, 2025; the 2027 figure had not been posted as of October 30, 2026.

Vermont Minimum Wage FAQ

Official References

Rates verified against the sources above on October 30, 2026. The calculator shows gross pay only. Industry rates, exemptions and local ordinances can change during the year; check the agency page before setting pay. This page is general information, not legal advice.

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