Vermont State Income Tax Overview
Vermont has a progressive income tax from 3.35% to 8.75% for 2026. For 1099 gig workers in Vermont, this state tax is applied on top of federal self-employment tax (15.3%) and federal income tax. Use the calculator above to see your combined federal + state tax obligation.
Gig Economy in Vermont
Vermont attracts remote workers and freelancers, particularly from New York and Boston, drawn by the rural lifestyle. Airbnb hosts are common around ski resorts. Vermont quarterly estimated payments use Form IN-114.
Quarterly Estimated Tax Payments for Vermont Freelancers
Unlike W-2 employees whose employers withhold taxes from each paycheck, 1099 gig workers in Vermontmust calculate and pay their own taxes quarterly. The IRS requires quarterly estimated payments usingForm 1040-ES if you expect to owe more than $1,000 in federal taxes for the year. The four payment deadlines for 2026 are:
- Q1: April 15, 2026 (Jan–Mar income)
- Q2: June 16, 2026 (Apr–May income)
- Q3: September 15, 2026 (Jun–Aug income)
- Q4: January 15, 2027 (Sep–Dec income)
Vermont has its own estimated tax payment requirements. Check the Vermont state revenue or taxation department website for state-specific forms and deadlines, which are generally aligned with the federal schedule.
Key Deductions for Vermont Gig Workers
Regardless of your state, federal deductions apply to all 1099 workers. The most impactful deductions include:
- Self-employment tax deduction (50% of SE tax reduces your AGI)
- Home office deduction (dedicated workspace used exclusively for business)
- Vehicle mileage (for drivers, delivery workers, and in-person service providers)
- Business phone and internet (percentage used for work)
- Qualified Business Income (QBI) deduction — up to 20% of net business income
- Health insurance premiums (if self-employed with no employer coverage)
- Retirement contributions (SEP-IRA, Solo 401k)