United States · Vermont · Minimum wage
Vermont minimum wage 2027.
The Vermont minimum wage for 2027, what it was in 2026, and what it pays by the week, month and year.
Short answer: Vermont's minimum wage rises from $14.42 to $14.91 an hour on January 1, 2027, an increase of $0.49, according to a Vermont Department of Labor announcement dated November 9, 2026. The tipped minimum wage, 50 percent of the full minimum, rises from $7.21 to $7.46 on the same date. The adjustment follows 21 V.S.A. § 384.
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Tipped worker top-up
The Vermont minimum wage in 2027
The Vermont Department of Labor announced on November 9, 2026 that beginning January 1, 2027 the state minimum wage increases from $14.42 to $14.91 an hour. The press release says the basic tipped wage rate equals 50 percent of the full minimum wage, so the tipped minimum increases from $7.21 to $7.46, and that both are adjusted annually in accordance with Vermont law and take effect at the start of the new year under 21 V.S.A. § 384.
| Item | 2026 | From January 1, 2027 |
|---|---|---|
| Basic minimum wage | $14.42 | $14.91 (+$0.49) |
| Tipped minimum wage (50%) | $7.21 | $7.46 |
| Tip credit | $7.21 | $7.45 |
| Overtime | After 40 hours a week | After 40 hours a week |
What changed from 2026
The rate rises $0.49 an hour, about 3.4 percent. For a full-time worker at the minimum that is $19.60 more a week before tax and about $1,019.20 more a year: $29,993.60 at $14.42 versus $31,012.80 at $14.91 for 2,080 hours. The U.S. Department of Labor state table, updated November 5, 2026, still lists $14.42 because the announcement came four days later; it describes the Vermont rate as adjusted annually by a set formula and notes that the state minimum is automatically replaced with the federal rate if the federal rate is higher.
How tipped pay works in Vermont
The Department of Labor state table lists Vermont for employers of two or more employees with premium pay after 40 hours a week. The press release explains that employers may pay the tipped wage as long as the employee receives tips equal to or greater than the standard minimum wage during a given shift. If tips in a workweek do not bring the employee up to the standard minimum, the employer must pay the difference. The tipped-wage table lists a monthly tip threshold of more than $120.
Worked example (2027)
A full-time worker at $14.91 an hour, 40 hours a week, earns $596.40 a week, $1,192.80 every two weeks, $2,584.40 a month and $31,012.80 a year (2,080 hours) before tax. Part-time at 25 hours a week is $372.75 a week and $19,383.00 a year. For a tipped worker the direct cash wage is $7.46. With 30 hours a week and tips averaging $4.00 an hour, pay is $11.46 an hour against $14.91, so the employer owes a top-up of $3.45 an hour, $103.50 for the week.
Common mix-ups
- The DOL table still shows $14.42. It was updated before Vermont's November 9 announcement; $14.91 is the figure from the Vermont Department of Labor.
- The tipped wage is half the full minimum. $7.46 is 50 percent of $14.91, and tips must bring the total to $14.91.
- The increase starts January 1. Vermont adjusts at the start of the calendar year, unlike states that adjust in July.
- Local minimums can be higher. Some local governments set rates above their state minimum, and the Department of Labor table does not display them.
Method
The converter multiplies the hourly rate by your hours per week for weekly pay, doubles it for two weeks, multiplies by 52 weeks (2,080 hours at 40 a week) for annual pay and divides the annual figure by 12 for a month. It is gross pay before tax. The tipped-worker check adds the $7.46 cash wage and your average tips per hour and compares the total with $14.91. If it falls short, the shortfall times your hours is the weekly top-up. Everything runs in your browser and nothing you type is sent anywhere. Figures were read from the sources below on November 9, 2026.
What this does not cover
- Overtime exemptions and the rules for minors.
- Local employer agreements that pay more than the minimum.
- Taxes and deductions: pay here is gross pay before tax.
- Any later change to the 2027 figure by the Department of Labor.
Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.
Sources
- Vermont Department of Labor: Minimum Wage Increase Starting January 2027 (November 9, 2026) (retrieved November 9, 2026)
- U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026) (retrieved November 9, 2026)
- U.S. Department of Labor: Minimum Wages for Tipped Employees (retrieved November 9, 2026)
Frequently asked questions
What is the Vermont minimum wage in 2027?
$14.91 an hour from January 1, 2027, up $0.49 from $14.42, according to the Vermont Department of Labor announcement of November 9, 2026.
What is the Vermont tipped minimum wage in 2027?
$7.46 an hour from January 1, 2027, 50 percent of the full minimum wage, up from $7.21.
When does the Vermont minimum wage increase?
On January 1, 2027, under the annual adjustment in 21 V.S.A. section 384.
How much is $14.91 an hour a year?
At 40 hours a week for 52 weeks it is $31,012.80 before tax, or $596.40 a week.
How much more is that than 2026?
About $1,019.20 a year for a full-time worker: $31,012.80 at $14.91 compared with $29,993.60 at $14.42.
Why does the U.S. Department of Labor table show $14.42?
The table was updated November 5, 2026, four days before Vermont announced the 2027 figure on November 9.
Who do I contact about unpaid wages?
The Vermont press release gives the Department of Labor Wage and Hour Unit at 802-951-4083.
Not legal advice
This page is general information from an unofficial guide, not legal, payroll or tax advice. Wage laws change and exemptions apply to some workers. Confirm the rate with the state labor agency before you set pay. Nothing you type is sent anywhere.