VT H0077

Creates a new top marginal income tax bracket of 12.75% for high-income taxpayers (over $1,217,350 for married filing jointly; over $1,000,000 for single filers; over $1,108,675 for heads of household; over $608,675 for married filing separately)

Adjusts all existing income tax bracket thresholds upward for inflation, with annual inflation adjustments beginning in taxable year 2025 using the Consumer Price Index

Dedicates revenue from the new top bracket: 2% of taxable income at the highest rate goes to the Education Fund, 1% to the Transportation Fund for road/bridge repair and public transit, and 1% to the Vermont Higher Education Endowment Trust Fund

Applies retroactively to taxable years beginning January 1, 2025