Home Vermont Child care contribution tax begins July 1

Child care contribution tax begins July 1

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BURLINGTON, Vt. (WCAX) – Starting on Monday, you could see a new tax listed on your pay stub.

As of July 1, employers will pay a point 4.4% payroll tax on wages paid towards the Vermont Child Care Contribution tax. Employers can choose to withhold a quarter of that tax from employees.

Self-employed Vermonters will pay a point 1.1% tax on self-employed income.

That is thanks to Act 76 passed by the legislature in 2023 with the goal of easing the state’s child care crisis.

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