Vermont minimum wage: $14.42 an hour, rising to $14.91 on January 1, 2027
Checked November 9, 2026Source: Vermont Department of Labor
Short answer
Vermont’s minimum wage is $14.42 an hour, in effect since January 1, 2026, according to the Vermont Department of Labor.
Employers may pay tipped employees $7.21 an hour in cash, as long as tips bring them up to at least $14.42.
It rises to $14.91 on January 1, 2027, with a tipped cash wage of $7.46.
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- Minimum wage today
- $14.42
- Tipped employees, cash wage
- $7.21
- From January 1, 2027
- $14.91
- Full-time year at today’s rate (2,080 hours)
- $29,994
We found no city or county in Vermont with its own higher minimum wage.
What changed for Vermont pay
· Rate announced
Vermont sets its 2027 minimum wage at $14.91
The Vermont Department of Labor announced that the state minimum wage will rise from $14.42 to $14.91 an hour on January 1, 2027. The tipped minimum wage will rise from $7.21 to $7.46 an hour.
What the January 1, 2027 raise costs you
The raise is $0.49 an hour for anyone paid less than the new rate on January 1, 2027.
- Added wages a year
- $764
- Employer Social Security and Medicare (FICA), 7.65%
- $58
- Total added cost a year
- $822
Counts only the raise for workers below the new rate, over 52 weeks. It leaves out raises you give others to keep pay gaps, and state unemployment tax, which usually stops at a wage cap.
Vermont minimum wage by date
| Effective | Minimum wage | Tipped cash wage | Note |
|---|---|---|---|
| January 1, 2027Upcoming | $14.91 | $7.46 | The tipped rate, called the Basic Tipped Wage Rate, equals 50% of the full minimum wage.source |
| January 1, 2026Current | $14.42 | $7.21 | source |
| January 1, 2025 | $14.01 | $7.01 | Applies to employers of 2 or more. Tipped basic wage (hotel, motel, tourist place and restaurant service employees earning over $120/month in tips) is half the minimum.source |
Adjusted each January 1 by the smaller of 5% or the increase in the consumer price index for the 12 months before September 1, rounded to the nearest cent, never decreasing (Title 21, section 384 of Vermont law).
Before January 1, 2027
- Update every hourly rate below $14.91 in payroll so the first paycheck on or after that date is right.
- Update tipped employees’ cash wage to $7.46.
- Replace the minimum wage poster with the new year’s version from the Vermont Department of Labor.
Other Vermont pay rules
- Paydays
- Weekly, covering wages up to 6 days before payday. Every two weeks or twice a month is allowed after notice to employees.
- Overtime
- Time and a half after 40 hours in a workweek. The state law covers employers with 2 or more employees, but its overtime section excludes retail or service establishments, hotels, motels, restaurants and some others; federal overtime rules can still apply to them.
- Final paycheck
- Fired: Within 72 hours of the discharge. Quit: By the regular payday (the law says 'the last regular pay day'), or the following Friday if there is no regular payday.
From the Vermont Department of Labor and the U.S. Department of Labor’s state tables. All Vermont employer rules.
Minimum wage in states next to Vermont
If you hire across a state line, the worker’s state sets the rate.
| State | Today | Next change |
|---|---|---|
| Vermont | $14.42 | $14.91 on January 1, 2027 |
| New York | $17.00$16.00 in the rest of the state | No raise on January 1, 2027 |
| Massachusetts | $15.00 | None scheduled |
| New Hampshire | $7.25 | None scheduled |
Questions employers ask
What is the minimum wage in Vermont in 2026?
Vermont’s minimum wage is $14.42 an hour, in effect since January 1, 2026, according to the Vermont Department of Labor.
What is the tipped minimum wage in Vermont?
Employers may pay tipped employees $7.21 an hour in cash, as long as tips bring them up to at least $14.42.
When does the Vermont minimum wage go up next?
On January 1, 2027, to $14.91 an hour. Adjusted each January 1 by the smaller of 5% or the increase in the consumer price index for the 12 months before September 1, rounded to the nearest cent, never decreasing (Title 21, section 384 of Vermont law).
Do cities in Vermont have a higher minimum wage?
We found no city or county in Vermont with a minimum wage above the state rate.
Does Vermont require overtime pay?
Time and a half after 40 hours in a workweek. The state law covers employers with 2 or more employees, but its overtime section excludes retail or service establishments, hotels, motels, restaurants and some others; federal overtime rules can still apply to them.
Compare every state’s minimum wage · Everything employers in Vermont must do
Sources
- Vermont Department of Labor
- The Vermont Department of Labor Announces Minimum Wage Increase Starting January 2026 (October 6, 2025), Vermont Department of Labor (read Nov 7, 2026)
- 21 V.S.A. 384, Employment; wages, Vermont General Assembly (read Nov 7, 2026)
- The Vermont Department of Labor Announces Minimum Wage Increase Starting January 2027 (November 9, 2026), Vermont Department of Labor (read Nov 9, 2026)
- Minimum Wages for Tipped Employees (revised November 5, 2026), U.S. Department of Labor, Wage and Hour Division (read Nov 8, 2026)