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Vermont Minimum Wage 2026: $14.42/hr

Vermont workers must be paid at least $14.42 an hour, $7.17 above the federal $7.25 minimum.

Data updated

Key facts for Vermont

Minimum wage
$14.42/hr
In effect since
Tipped cash wage
$7.21/hr
Compared with federal
+$7.17 vs the federal $7.25
Overtime
1.5x after 40 hrs/week

Source

Rule
Vermont minimum wage law
Published by
labor.vermont.gov
Last updated
How we source and check data

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Hourly rate and hours in, weekly pay with Vermont overtime rules out.

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The short answer

Vermont's minimum wage is $14.42/hr in 2026, $7.17 above the federal $7.25 minimum , ranked #19 of 51 US jurisdictions. The tipped cash wage is $7.21/hr.

How the Vermont minimum wage works

In Vermont, the minimum wage is $14.42 per hour, effective January 1, 2026. Vermont sets its own minimum wage, and a tip credit is allowed: the tipped cash wage is $7.21 per hour, with tips expected to bring total pay to at least the full minimum wage. Overtime is paid at 1.5× the regular rate after 40 hours in a workweek. This reflects a state overtime law.

Vermont adjusts its minimum wage each January 1 based on a set formula. Applies to employers with two or more employees. Tipped minimum cash wage is 50% of minimum ($7.21/hr). The 2027 rate had not been officially announced as of September 26, 2026.

How Vermont compares

State rate
$14.42/hr
Federal minimum
$7.25/hr
Difference
+$7.17 (+98.9%)
National rank
#19 of 51

Ranked by 2026 effective minimum wage across all 51 U.S. states and jurisdictions. Federal comparison source: U.S. Department of Labor.

Vermont overtime rules

Weekly overtime threshold
40 hours (1.5x)
Governing law
State overtime law

Vermont requires overtime at 1.5x the regular rate for hours over 40 per week (21 V.S.A. 384(b)). The law applies to employers with two or more employees, and some types of employers are exempt.