Mortgage Interest Deduction in Vermont
State income tax rate
8.75%
Itemized deductions allowed
✅ Yes
State-Level Mortgage Interest Deduction
Vermont has a top rate of 8.75% and conforms to federal itemized deductions. Mortgage interest is deductible on Vermont returns.
Combined Federal + Vermont Savings
If you paid $18,000 in mortgage interest last year and itemize on both returns, your combined tax savings would be approximately:
- Federal (22% bracket): $3,960
- Vermont (8.75% rate): $1,575
- Total estimated savings: $5,535
These are estimates based on a 22% federal bracket. Your actual savings depend on your specific tax situation.