Vermont's minimum wage of $14.42 in 2026 is among the highest in the United States, and it is significantly higher than than the base federal minimum wage of $7.25 still used in 20 states.
Assuming a standard 40-hour work week, the weekly minimum wage in Vermont is $576.80. For full-time employees working 52 weeks per year, the annual minimum wage in Vermont is $30K.
Based on $14.42/hr minimum
Based on $14.42/hr minimum
The minimum wage rate of Vermont and its neighboring states ranges from $7.25 to $17, with an average of $13.44. Vermont, at $14.42, has an above average hourly minimum wage within this group of states. New York ($17) and Maine ($15.10) both have higher hourly rates than Vermont. New Hampshire ($7.25) has lower hourly rates than Vermont.
While the general minimum wage is $14.42 per hour in Vermont, there are exceptions where workers may legally receive less than this amount:
Can be paid a reduced rate (typically 85% of the Vermont minimum wage, $12.26/hr in 2026) when employed in retail, service, or higher education institutions.
Workers under 20 years old may be paid a lower “training wage” (85% of the Vermont minimum wage, $12.26/hr) for the first 90 consecutive days of employment.
Apprentices registered with the Vermont Division of Apprenticeship Standards and certain interns may be exempt from full minimum wage requirements.
Employees working in agriculture, domestic service in private homes, or in bona fide executive, administrative, or professional roles are exempt from Vermont minimum wage.
Vermont's cost of living index for 2025 is 113.6, which places it as the 10th most expensive state to live in the United States.
100
113.6
Assuming a standard 40-hour work week, the real wage in Vermont, adjusted for the state’s cost of living index of 113.6, is approximately $12.69 per hour. This means that while the nominal minimum wage is $14.42 per hour, the purchasing power of those earnings is lower due to Vermont's higher cost of living expenses. For full-time employees, the real weekly earnings amount to roughly $507.75, translating to an annual purchasing power of $26,402.82 when working 52 weeks per year.
Adjusted
Adjusted
Adjusted
130K
135K
140K
145K
150K
155K
160K
165K
170K
175K
According to the most recent data, the median household income in the United States has seen a significant increase in 2023.
Vermont’s minimum wage is automatically adjusted each year based on inflation under state law, using the Consumer Price Index with a capped increase to prevent sharp spikes. The rate cannot decrease, even during periods of deflation, ensuring steady wage growth.