Live in Vermont, work in New Hampshire

From paycheck withholding to your returns

1. Withholding: Ask the New Hampshire employer whether payroll can withhold Vermont resident income tax and accept Form W-4VT. Give the certificate to the employer when setting up Vermont withholding. A federal W-4 alone can produce a different Vermont result. If Vermont withholding is missing or inadequate, review Vermont's estimated-payment requirements and the 2026 IN-114 voucher; keep payment confirmations. A payslip with no New Hampshire state income tax has not prepaid the Vermont bill. Do not infer that every employer with no Vermont work location must register solely from this example.
2. Returns: Prepare the federal return, then file Vermont resident IN-111 when Vermont's filing tests apply, including the New Hampshire wages in resident income. Follow the year's instructions for the required W-2 and payment evidence and reconcile Vermont withholding and estimates. New Hampshire has no individual W-2 wage-income-tax return for this wages-only case. The reviewed IN-111 annual instructions are the 2025 edition, published in January 2026; use the actual filing-year return and thresholds for 2026 wages.
3. Credit or refund: There is no New Hampshire individual wage income tax to enter as a Vermont other-state credit. Vermont withholding and estimated payments are payments toward Vermont liability; they are not a credit for a hypothetical New Hampshire tax. This example concerns ordinary wages, not New Hampshire business taxes or other income and filing obligations.

Worked example: $100,000 of wages

Single filer, full-year resident of Vermont, all work performed in New Hampshire, no other income, standard deductions and modeled personal exemptions. New Hampshire does not tax these employee wages in this scenario. Pay a modeled $4,140 to Vermont and $0 to New Hampshire, total $4,140. No other-state income-tax credit is subtracted.

The existing 2026 planning calculation is unchanged. Reviewed 2025 annual instructions support the filing steps; they do not certify final 2026 annual-return amounts or individual eligibility for credits. The current Vermont sites list different historical revision years for W-4VT; use the certificate linked by the official employee guidance rather than treating it as a newly issued 2026 form.

Annual liability, not paycheck withholding or a refund estimate. Federal tax, payroll programs, other local taxes, special credits and part-year residency are excluded. Local income taxes not included.

Remote-work and local exceptions

Full-year Vermont resident, ordinary W-2 employee wages, all modeled services physically in New Hampshire and no midyear move. Vermont continues to tax resident wages if some services move to the Vermont home. Keep work-location records and tell payroll about that change: Vermont employer-withholding duties can depend on Vermont work and employer facts. This calculator does not allocate hybrid wages or determine employer registration requirements.

White River Junction home, Lebanon workplace: find the Vermont payment

For a full-year Vermont resident with a Lebanon, New Hampshire job, compare the W-2's state entries with pay statements and Vermont estimated-payment receipts. If the employer withholds neither state's income tax, the Vermont resident liability does not disappear. Ask payroll about W-4VT and review IN-114 if needed. A New Hampshire workplace alone does not establish a move out of Vermont; keep the residence and work records that match your actual facts. No local or payroll-tax amount is calculated here.

Official forms and instructions

• Vermont employee withholding: W-4VT and employer submission (opens in new tab)
• Vermont estimated payments, including the 2026 IN-114 voucher (opens in new tab)
• Vermont IN-111 instructions (2025 annual edition) (opens in new tab)
• Vermont resident filing requirements (opens in new tab)
• Vermont filing checklist and supporting records (opens in new tab)
• New Hampshire DRA: no tax on individual W-2 wages (opens in new tab)

Source audit 2026-11-02. Use the return and instructions for the year you are filing; a current-forms link may still show a prior-year return. Official sources checked; not independently reviewed.

Check your payslip and keep these records

• Compare the payroll certificate you supplied with the state withholding on your next payslip. Check city, county and school-district entries separately; a state exemption does not settle local tax.
• Keep your W-2 and other withholding statements, copies of payroll certificates, filed state and local returns, and proof of tax paid. A refund depends on actual withholding and the completed return, not this annual estimate.
• Keep an actual work-location log, including home-working days. This calculator assumes ordinary employee wages, full-year residence in Vermont and every workday physically in New Hampshire.
• If you moved during the year, have nonwage income or do not meet that scope, follow the pair's remote and local exceptions and the moving-year tax guide before using the amount as your own result. This tool does not calculate hybrid allocation, local credits or a personal refund.