Bill > H0619

This bill proposes to add a new section to Vermont law that creates a personal income tax surcharge of three percent on an individual's federal adjusted gross income, which is the income reported on federal tax returns before certain deductions. This surcharge would apply to individuals whose federal adjusted gross income is $1,000,000 or more. The bill specifies that this surcharge is in addition to any other income tax owed and will be collected and enforced in the same way as the regular income tax. To ensure the threshold for this surcharge keeps pace with inflation, the Commissioner of Taxes will annually adjust the $1,000,000 income threshold. Furthermore, this new surcharge will take effect retroactively on January 1, 2026, meaning it will apply to income earned from that date forward.

Budget and Finance

https://legislature.vermont.gov/bill/status/2026/H.619