Vermont Minimum Wage Calculator 2026 — tipped & non-tipped

Frequently Asked Questions

• What is Vermont's minimum wage in 2026?

  Vermont's standard minimum wage is $14.42 per hour, effective January 1, 2026. This is nearly double the federal FLSA floor of $7.25/hr. The rate is automatically adjusted each year based on the Consumer Price Index (21 V.S.A. § 384, as of 2026).

• What is the Vermont tipped minimum wage in 2026?

  The Vermont tipped minimum wage is $7.21 per hour — exactly 50% of the standard $14.42/hr rate. This applies to service employees in hotels, motels, restaurants, and tourist establishments who regularly receive more than $120 per month in tips.

• What happens if a tipped Vermont employee's tips don't reach minimum wage?

  If a tipped employee's cash wages ($7.21/hr) plus tips do not total at least $14.42/hr for a workweek, the employer must pay the difference. Vermont law does not allow the tip shortfall to be carried over to future weeks.

• Which Vermont employees qualify for the tipped wage rate?

  Vermont's tipped rate applies to service employees — defined as workers in hotels, motels, tourist places, or restaurants who customarily and regularly receive more than $120 per month in tips for direct and personal customer service. General retail or other service workers who receive occasional tips do not qualify.

• Does Vermont's minimum wage apply to small employers?

  Yes. Vermont's $14.42/hr minimum wage applies to virtually all employers regardless of size, with limited exceptions for agricultural workers and certain government employees. There is no small-business exemption for the standard minimum wage.

• How does Vermont's minimum wage compare to the federal rate?

  Vermont's $14.42/hr standard wage (2026) exceeds the federal FLSA minimum of $7.25/hr by $7.17/hr — nearly double. Vermont's tipped rate of $7.21/hr is also far above the federal tipped minimum of $2.13/hr. Vermont law always prevails when it is more favorable to the employee.

• When did Vermont's minimum wage last increase?

  Vermont's minimum wage increased from $14.01/hr to $14.42/hr on January 1, 2026. The prior year increase was from $13.67/hr to $14.01/hr on January 1, 2025. Vermont's CPI-linked formula means the rate increases automatically each January 1.

• What is the Vermont overtime rate in 2026?

  Vermont follows the federal FLSA overtime threshold: 1.5× the regular rate for all hours over 40 in a workweek. Vermont does not add daily overtime thresholds. Overtime is calculated on the employee's actual wage rate, which must be at least $14.42/hr for non-exempt employees.

• Can Vermont employers pay a training or youth minimum wage?

  Vermont does not have a separate youth or training minimum wage sub-floor for regular employees. All non-tipped employees 18 and older must be paid at least $14.42/hr as of 2026. Special rules may apply to student-learner programs but not to general youth employment.

• How often does Vermont's minimum wage increase?

  Vermont's minimum wage adjusts automatically every January 1 based on the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the Northeast region for the 12-month period ending in June. This means the rate may increase each year without new legislation being required.