The civic record
Read. Follow. Verify.Vermont bill creates two new income tax brackets and dedicates revenue to property tax credits
Last action · January 21, 2026: Read first time and referred to the Committee on Ways and MeansSponsors: Lawrence Satcowitz and 10 others
Track this bill to get notified when it advances a stage. One tap to stop, anytime.
What This Bill Would Do
Vermont H.732 creates two new s taxed at an additional one percent for high-income earners, depositing the resulting revenue into the to increase s for households earning under $115,000 annually.
High earners face higher marginal tax rates starting at specific income thresholds, while households earning under $115,000 per year receive larger s funded by the newly generated tax revenue.
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Individual taxpayers with taxable income of $200,000.00 and above
Individual filers meeting these income thresholds are subject to two new marginal income tax brackets taxed at an additional one percent.
Married filers with taxable income of $400,000.00 and above
Married filers meeting these income thresholds are subject to two new marginal income tax brackets taxed at an additional one percent.
Taxpayers with household income of less than $115,000.00 per year
Key Facts
- The bill creates two new marginal income tax brackets taxed at an additional one percent of income within the bracket.
- For individual filers, the new brackets begin at $200,000.00 and $400,000.00 of taxable income.
- For married filers, the new brackets begin at $400,000.00 and $800,000.00 of taxable income.
- Additional revenue generated from the new brackets is deposited into the Education Fund.
Show all 5 facts
- Revenue deposited in the Education Fund is dedicated to increasing the property tax credit for taxpayers with household incomes of less than $115,000.00 per year.
Frequently Asked Questions
Who is affected by the new income tax brackets?
What will the additional tax revenue be used for?
What else do you want to know?
News Coverage
Follow the record
Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
1 action- Jan 21, 2026HouseIntroducedRead first time and referred to the Committee on Ways and Means
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Creation of New Marginal Tax Brackets
The measure proposes adding two distinct tax tiers with an additional one percent levy aimed at high-income individual and married filers.
Connected Entities
Sources
legislature.vermont.gov
Analysis Score
0–100- Significance60How much this matters to a regular citizen
- Controversy65Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz35Current news / social attention level
Publisher tools