Vermont Minimum Wage 2026
Last updated: · Source: Vermont Department of Labor
Vermont · Minimum Wage 2026
Effective 2026-01-01
Data last verified: 2026-07-09
Tipped Rate
$7.21/hr
Tip Credit
$7.21/hr
Exempt Salary
$684/wk
Effective Date
2026-01-01
Vermont Wage Calculator
Current Vermont Minimum Wage
The minimum wage in Vermont is $14.42 per hour in 2026, effective 2026-01-01. This is above the federal minimum wage of $7.25/hr set by the Fair Labor Standards Act (FLSA). Employers must pay the higher of the two rates, so the Vermont rate applies. See the federal minimum wage page for how the FLSA floor applies nationwide.
Under the Fair Labor Standards Act, employers must pay the highest minimum wage that legally applies to a work location, whether set federally, by the state, or by a city or county ordinance.
Vermont Tipped Minimum Wage
In Vermont, tipped employees may be paid a direct cash wage of $7.21/hr. Employers may claim a tip credit of up to $7.21/hr, but the employee's total hourly earnings (direct wages + tips) must equal at least the full minimum wage of $14.42/hr. If tips fall short, the employer must make up the difference.
| Component | Rate | Notes |
|---|---|---|
| Direct cash wage | $7.21/hr | Minimum employer must pay directly |
| Tip credit | $7.21/hr | Maximum credit employer may claim |
| Total required | $14.42/hr | Wages + tips must reach this floor |
Vermont Exempt Employee Salary Threshold (2026)
An "exempt" employee is a salaried worker who, by law, isn't entitled to overtime pay (time-and-a-half) for hours worked beyond 40 in a week. Whether a salaried employee actually qualifies as exempt depends on both their pay and their job duties. Vermont follows the federal FLSA salary threshold. To qualify for the white-collar (executive, administrative, or professional) overtime exemption, salaried employees must earn at least $684/week ($35,568/year) in 2026.
City & County Minimum Wages in Vermont
Vermont permits cities and counties to set higher local minimum wage rates. The following major cities follow the state rate:
| City / County | 2026 Rate | Notes |
|---|---|---|
| Burlington | $14.42/hr (state rate) | Follows the Vermont state rate; Burlington's Livable Wage Ordinance applies only to city employees and contractors, not general private employment. |
| South Burlington | $14.42/hr (state rate) | Follows the Vermont state rate. |
| Rutland | $14.42/hr (state rate) | Follows the Vermont state rate. |
Vermont Minimum Wage History
The following table shows minimum wage rates in Vermont over the past several years.
| Year | Minimum Wage | Effective Date | Notes |
|---|---|---|---|
| 2026 | $14.42/hr | 2026-01-01 | |
| 2025 | $14.01/hr | 2025-01-01 | |
| 2024 | $13.67/hr | 2024-01-01 | |
| 2023 | $13.18/hr | 2023-01-01 | |
| 2022 | $12.55/hr | 2022-01-01 | |
| 2021 | $11.75/hr | 2021-01-01 | |
| 2020 | $10.96/hr | 2020-01-01 |
Frequently Asked Questions
The minimum wage in Vermont is $14.42 per hour in 2026, effective 2026-01-01. Tipped employees may be paid $7.21 per hour provided tips bring total earnings to at least $14.42/hr.
Vermont's minimum wage rose from $14.01 to $14.42/hr on January 1, 2026, under the state's CPI-indexed annual adjustment (capped at 5%).
In Vermont, tipped employees must be paid at least $7.21 per hour directly. Employers may claim a tip credit of up to $7.21/hr, but total compensation including tips must reach $14.42/hr.
Vermont follows the federal FLSA salary threshold. Salaried exempt employees must earn at least $684/week ($35,568/year) to qualify for the white-collar overtime exemption in 2026.
Vermont does not prohibit local minimum wage ordinances, but no cities currently have a rate higher than the state minimum of $14.42/hr.