Vermont minimum wage
Minimum wage in Vermont, in effect since January 1, 2026
$14.42 an hour
That is $7.17 above the federal minimum of $7.25. Employers in Vermont pay the higher state rate.
Next increase: none announced as of October 9, 2026. Adjusted each January 1 by the smaller of 5% or the CPI-U increase, rounded to the nearest cent; never decreased.
Tipped employees
Employers in Vermont can pay tipped employees a cash wage of $7.21 an hour, taking a tip credit of up to $7.21, as long as tips bring the employee to at least $14.42 for every hour worked. If they don't, the employer makes up the difference. An employee counts as tipped if they get more than $120.00 a month in tips (hotel, motel, tourist place and restaurant service employees).
How future increases are set
Adjusted each January 1 by the smaller of 5% or the CPI-U increase, rounded to the nearest cent; never decreased.
Exceptions and details
- 2027 rate not yet posted on the Vermont DOL site as of Oct. 8, 2026.
- Applies to employers of 2 or more employees (DOL state table).
- Tipped (service) employees in hotels, motels, tourist places and restaurants: at least half the minimum wage.
Common questions
- What is the minimum wage in Vermont?
- $14.42 an hour, in effect since January 1, 2026.
- What is the tipped minimum wage in Vermont?
- $7.21 an hour in cash wages, provided tips bring the employee up to $14.42 an hour.
- When does the Vermont minimum wage go up?
- No increase had been announced as of October 9, 2026.
Running payroll in Vermont?
Recent changes
Last verified against the official source on October 9, 2026.
No changes recorded since we started tracking this page.
Sources
- Vermont Department of Labor · data as of January 1, 2026 · last checked October 9, 2026
We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.