Join #1 A.I. tax service for freelancers

For Tax filers

For Tax firms

Resources

Vermont state income tax calculator

Find your 1099 taxes in Vermont

Step 1/4

Are you self-employed?

This includes freelancers and business owners

Yes

Sales Tax Guide of

Select State

Vermont State Income Tax Guide

Vermont is known for its picturesque landscapes, charming small towns, and vibrant culture. As a resident or business owner in this beautiful state, it's important to understand the Vermont state income tax system. The Vermont state income tax rate ranges from 0% to 8.75%, affecting how much you may owe each year. This guide will break down how Vermont state income tax rates are determined, including factors like income level and filing status. By understanding these aspects, you can better navigate your tax obligations and make informed financial decisions.

Single Filers

Married, Filing Jointly

Married, Filing Separately

Head of Household

Single Filers

Vermont Taxable Income

Rate

$0 - $3,700

0.00%

$3,700 - $51,600

3.35%

$51,600 - $119,700

6.60%

$119,700 - $245,700

7.60%

$245,700+

8.75%

What's in this article?

Understanding Vermont State Income Tax
How Do Vermont Income Tax Rates and Brackets Work?
Who Needs to Pay Vermont State Income Tax?
How to Calculate Your Vermont State Income Tax
Vermont State Tax Deductions
Vermont State Tax Credits
How to Get a Vermont State Tax Identification Number
Deadlines and Extensions for Vermont State Income Tax
How to Track Your Vermont State Income Tax Refund

Understanding Vermont State Income Tax

Understanding the Vermont state income tax is key to managing your funds effectively while living or doing business in the state. State income tax is a tax imposed by individual states on the income earned within those states. Unlike the federal income tax, which is governed by national laws and regulations, the Vermont state income tax is guided by rules specific to Vermont. This means that rates, deductions, and credits may vary, and it’s crucial to distinguish between the two when preparing your taxes. The main reason Vermont collects state income tax is to fund essential public services like education, infrastructure, and healthcare. These contributions help maintain the quality of life Vermont residents enjoy. Familiarity with the VT state income tax ensures you are contributing appropriately and helps you plan your finances throughout the year. In the next section, we will explore about Vermont Income Tax Rates and Brackets to understand how your earnings determine your state tax responsibilities.

How Do Vermont Income Tax Rates and Brackets Work?

Vermont employs a progressive tax system for income tax. This means that the Vermont state income tax rate increases as your income goes up. The actual rate you pay depends on variables like your income level and filing status, such as single, married filing jointly, or head of household. To get a better understanding of how these rates work, you may want to refer to the Vermont state income tax rates table. This table can provide a useful comparison to highlight how different tax structures function. To see a practical application of Vermont's tax structure, consider a freelancer with an income of $. This example will help illustrate how Vermont state tax rate is applied in conjunction with federal and self-employment taxes. Review the table below to understand how the overall tax liability is broken down, giving you a clearer picture of what to expect when calculating taxes at different income levels.

Estimated Tax Breakup

For $ Annual income

Monthly

Annual

Brackets

Rates

Income

Deductions

Federal income tax

Vermont state income tax

Self Employment tax

Total tax

Net pay

Who Needs to Pay Vermont State Income Tax?

In Vermont, both residents and non-residents may be subject to Vermont state income tax depending on their earnings from sources within the state. If you're a resident of Vermont, you are required to pay Vermont state tax on all your income, regardless of where it's earned. This means even income earned in other states will be subject to VT state income tax. This rule ensures that residents contribute fairly to the state's resources and public services, supporting the community and infrastructure they benefit from daily. Non-residents, on the other hand, must pay Vermont state income tax on income sourced within Vermont. This typically includes wages earned while working in Vermont or income from Vermont-based businesses. Even if you live elsewhere, any Vermont-sourced earnings could require you to file a Vermont state tax return, ensuring that those benefitting from the state’s economic environment contribute back to it. Part-year residents—those who lived in Vermont for only part of the year—are taxed on all income received during the period they resided in Vermont, as well as on any income earned from Vermont sources while living elsewhere. Understanding these distinctions helps you know when you're expected to file a Vermont state income tax return. Next, we'll discuss about how to calculate your Vermont state income tax to guide you through determining your tax obligations accurately.

Quick Tip :

Ensure you keep detailed records of all income sources and residency status throughout the year. This documentation will make it easier to determine your Vermont state income tax obligations when filing.

How to Calculate Your Vermont State Income Tax

Calculating your Vermont State Income Tax is vital for understanding how much you'll owe when completing your Vermont tax filing. Whether you're a full-time W2 employee or a self-employed individual, this step ensures you comply with tax laws and avoid any surprises come tax season. Knowing the specific deductions and credits available can also help you reduce your Vermont State Tax return obligations. To see how you can calculate your Vermont state income tax, refer to the image below for a step-by-step guide.

Make tax calculations easier with our Vermont State Income Tax Calculator. Just input your numbers, and you'll get an instant estimate of your tax liability according to Vermont's state income tax rates.

Vermont State Tax Deductions

Deductions are specific amounts that you can subtract from your total income when calculating your VT state tax, thus reducing your taxable income and ultimately your tax liability. By being aware of the available deductions, like the Vermont standard deduction, you can lower the amount of income subjected to the Vermont state income tax. This is an essential consideration for both individuals and families seeking to manage their tax burdens effectively. Understanding these deductions is an important step in ensuring that you're not overpaying on your Vermont state taxes. Common deductions can include those for personal expenses, business costs for freelancers, or student loan interest, among others. By effectively utilizing available deductions, you can make a significant difference in how much Vermont state income tax you owe. Refer to the image below for a list of Vermont state tax deductions to help guide you in maximizing these benefits.

Quick Tip :

Use the FlyFin State Income Tax Calculator to easily assess your eligible deductions and optimize your Vermont state tax filing, ensuring you don't miss any savings.

Vermont State Tax Credits

Vermont state tax credits are valuable incentives that can directly reduce the amount of tax you owe, dollar-for-dollar. Unlike deductions, which lower your taxable income, Vermont tax credits subtract from your overall tax liability. These credits can significantly ease your tax burden and can be especially beneficial for families, individuals, and businesses aiming to optimize their tax returns. Knowing which Vermont tax credits you qualify for can lead to substantial savings. From assisting low-income families to encouraging eco-friendly practices, Vermont tax credit programs cater to a wide range of needs and initiatives. By taking advantage of these credits, you can potentially lower your Vermont state tax bill while supporting beneficial causes and investments. Refer to the following section for more information on different types of tax credits available in Vermont, including income tax credits, child tax credits, and other related credits.

Vermont Income Tax Credit

Vermont Child Tax Credit

Vermont Education Tax Credit

How to Get a Vermont State Tax Identification Number

A Vermont state tax ID is a unique identifier for businesses and individuals engaged in activities that require tax reporting and payment to the state. This ID is crucial for handling Vermont state income tax obligations and ensuring compliance with Vermont state tax requirements. It allows entities to legally conduct business, collect sales tax if applicable, and report and pay taxes due. To obtain a Vermont state tax ID, you can apply online through the Vermont Department of Taxes website. The application process typically involves providing details about your business or personal information, such as legal name, contact details, and type of business activity. Once submitted, it usually takes a few days to receive your Vermont state tax ID, allowing you to proceed with your tax affairs promptly.

Filing Vermont State Income Tax Return

Filing a Vermont state tax return is crucial for all income earners, whether you're a W-2 employee, self-employed, or a gig worker. It ensures compliance with Vermont tax filing requirements and helps determine if you've overpaid or underpaid your Vermont state income tax. Filing accurately can result in potential refunds or adjustments that benefit your financial situation. To complete the process smoothly, familiarize yourself with the necessary steps.

Determine Your Filing Status

Determining your filing status is the first step in Vermont tax filing. Your status influences your tax rates and eligibility for specific deductions and credits. In Vermont, common filing statuses include single, married filing jointly, married filing separately, and head of household. Choosing the correct status is essential for accurate tax calculations and ensuring compliance with state tax regulations.

Gather All Required Documents

Gathering all required documents is the second step in filing your Vermont state tax. W-2 workers need their W-2 forms showing annual income and any withholding information. Self-employed individuals should collect 1099 forms, business income records, and any expense receipts. Having these documents organized will simplify the process and ensure accurate reporting of your Vermont state tax obligations.

Calculate Your Tax Liability

Calculating your tax liability is the third step in filing your Vermont state tax. To do this, you'll need to determine your taxable income by subtracting eligible deductions and credits from your total income. Understanding the Vermont state tax rate that applies to your income level is essential, as it directly affects how much you owe. Utilizing available deductions and credits can significantly reduce your overall tax liability.

Complete the Tax Forms

Completing the tax forms is the fourth step in filing your Vermont state tax. This involves using the appropriate state tax forms based on your filing status and income type. Ensure that all information is accurately filled in, including your income, deductions, and credits. Double-checking your forms helps prevent errors that could delay processing or impact your tax outcome. After this, you'll be ready to move on to the final step: File and Pay.

File and Pay

Filing and paying your Vermont state income tax is the final step in the process. You can submit your completed tax forms online or via mail to the Vermont Department of Taxes. Ensure that you pay any owed taxes by the due date to avoid penalties and interest. If you expect a refund, check your submission for accuracy to ensure prompt processing. With everything ready, you can confidently complete your filing.

Get a dedicated CPA to file your state income tax

Dedicated CPA files your taxes from start to finish. Federal and state return included.

As you prepare your state income tax return, accuracy and compliance with state regulations are essential. With different tax brackets, deductions, credits, and filing requirements, the process can feel overwhelming. That’s where FlyFin helps. By leveraging FlyFin's expert State Income Tax CPAs, combined with advanced AI technology, you can file your state income tax returns with maximum accuracy and efficiency. With FlyFin, you can focus on what matters most—running your business or managing your personal finances—while leaving the complex tax details to the professionals. To get started, use FlyFin’s state income tax calculator to simplify your calculations and ensure you're meeting all your state tax obligations.

Deadlines and Extensions for Vermont State Income Tax

Filing your Vermont state income tax on time is crucial to avoid penalties. Typically, the deadline for filing VT state income tax is April 15th. This date coincides with the federal tax filing deadline, providing a consistent timeline for taxpayers. It's important to mark this date on your calendar and prepare your documents and forms well in advance to ensure a smooth filing process. If you anticipate needing more time, Vermont offers an extension of up to six months. However, this extension only applies to the filing process—not the payment of your taxes. Any owed taxes are still due by the April 15th deadline to avoid interest and penalties. Filing for an extension can provide additional time to gather necessary documents without the worry of late filing penalties. If you miss the tax filing deadline for your Vermont state income tax return, you may be subject to penalties and interest on any unpaid taxes. It's essential to file as soon as possible to minimize these additional costs. In situations where you anticipate difficulty in meeting the deadline, proactive communication with the Vermont Department of Taxes is your best strategy.

Quick Tip :

Mark April 15th on your calendar as the deadline for VT state income tax filing. If you need extra time, file for an extension promptly, but remember that any tax payments are still due by this date.

How to Track Your Vermont State Income Tax Refund

Once you've submitted your Vermont State Tax return, tracking the status of your refund ensures you're informed about when to expect your money back. The Vermont Department of Taxes provides an online tool to check your Vermont state tax refund status, allowing you to track progress conveniently. This tool requires your Social Security number (or ITIN) and the exact amount of your anticipated refund. Understanding the typical processing timeline can help manage expectations. Generally, refunds for electronically filed returns are processed faster than paper returns. You can expect an update on your VT state tax refund status within a few weeks of electronic submission. Factors like accuracy of the return and the time of filing can influence the timeline. To track your refund, visit the Vermont Department of Taxes website and navigate to the refund status tool. Enter your details carefully, ensuring accuracy to receive the most current information. The online tool provides updates at different stages of processing, such as received, under review, and approved. If there are any discrepancies or delays, consider reaching out directly to the Vermont Department of Taxes for further assistance. It's crucial to have any necessary information on hand to expedite the resolution process.

Conclusion

Understanding the Vermont state income tax system is key for residents and businesses. By clarifying how the Vermont state income tax rate affects your financial obligations, along with the importance of identifying your filing status and gathering necessary documents, you can prepare effectively for tax season. Knowing about available deductions and credits can also significantly impact how much tax you owe, making it easier to manage your finances throughout the year. Staying aware of deadlines for filing and the process for tracking your Vermont state tax refund can help ensure a smooth experience. If issues arise, knowing the steps to take if you miss a filing deadline can further protect you from unnecessary penalties. Being informed equips you with the tools to make confident decisions regarding your VT state income tax responsibilities, ensuring compliance and maximizing your potential savings.

Automate state income tax calculation and filing with FlyFin

World’s #1 A.I. and CPA tax filing service with full audit insurance & a 100% money-back guarantee.

Frequently Asked Questions

Does Vermont have state income tax?

Yes, Vermont does have a state income tax. The tax operates on a progressive system, meaning that the more you earn, the higher your tax rate can be. This system is designed to make sure that individuals pay taxes according to their financial ability. It's important to keep in mind that there are different tax brackets, and your rate will depend on your total income for the year. If you earn over a certain amount, you are required to file a state tax return. For Vermont, the minimum income to file taxes is $100,000 for single filers and $125,000 for married couples filing jointly.

How much is Vermont state income tax?

Vermont's state income tax rates vary depending on your income level, following a progressive tax system. Generally, the rates range from around 0% for lower earners to about 8.75% for higher earners. This means that those with higher incomes pay a larger percentage in taxes compared to those with lower incomes. It's a way to ensure that everyone contributes fairly based on their ability to pay. Remember, the exact amount you owe will depend on your total income and the specific deductions or credits you may qualify for.

What is Vermont income tax rate?

Vermont's income tax rates are progressive, meaning they increase as your income rises. The rates generally fall between 0% for lower income brackets and can go up to around 8.75% for higher income brackets. This structure is designed to ensure that people contribute to state revenues based on their ability to pay, making it fairer for all taxpayers. Your specific rate will depend on where your income falls within these brackets.

How to pay Vermont income tax?

To pay Vermont income tax, you have several options available. You can make payments online through the Vermont Department of Taxes website, which is both quick and convenient. Additionally, you can send a check or money order by mail along with your completed tax return. If you prefer, you can also pay by phone using an electronic payment service. Make sure to have your information ready, such as your Social Security number and payment details. It’s important to pay any owed taxes by the due date to avoid penalties and interest.

Does Vermont tax retirement income?

Yes, Vermont does tax retirement income, but there are some nuances. Different types of retirement income, like Social Security benefits, pensions, and withdrawals from retirement accounts, can be taxed at different rates. Generally, Social Security benefits are not taxed, but other retirement income like pensions can be subject to state tax. Vermont allows some deductions for retirement income, which can lower your overall tax burden. It's always good to stay informed about how different income sources may be treated under state tax laws.

Where is my Vermont income tax refund?

To check the status of your Vermont income tax refund, you can visit the Vermont Department of Taxes website. They provide a refund tracker that allows you to see where your refund is in the processing stage. You'll need to enter some personal information, such as your Social Security number and the amount of your refund. If it has been a while since you filed and you haven’t received your refund, it’s a good idea to check online or contact the department for updates. Refunds can take some time to process, especially during busy tax seasons.

What is the minimum income to file taxes in Vermont?

In Vermont, the minimum income to file taxes varies based on your filing status. For single filers, you must file if your gross income is $100,000 or more. For married couples filing jointly, the limit is $125,000. If your income is below these thresholds, you typically do not have to file a tax return. However, there may be exceptions if you have other specific income sources or credits you want to claim. Always check for updates or changes in the tax laws to ensure you're informed.

Income Tax in other states

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

District Of Columbia

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

District Of Columbia

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

What’s FlyFin?

FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors. But anyone can file taxes through FlyFin! FlyFin tracks all your business expenses automatically using A.I. technology. Then, our CPA team files a guaranteed 100% accurate tax return for you – to save you a couple thousand dollars and a ton of time on your taxes. In addition, you can download the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and money.

https://dem95u0op6keg.cloudfront.net/image/PriceCalculator.webp

Expert tax CPAs ensure 100%-accurate tax filing

https://dem95u0op6keg.cloudfront.net/image/AiBrain.webp

A.I. finds every tax deduction, eliminating 95% of your work

https://dem95u0op6keg.cloudfront.net/image/MoneySack.webp

On average users save $3,700

Was this tip useful?

Yes

Blog Partner with us FlyFin member perks Privacy policy Terms of service Contact Us Sitemap

For more information & tax tips follow us on

More about FlyFin

FlyFin is the world’s #1 A.I. and CPA tax filing service for freelancers, self-employed, business owners, 1099 & W-2 workers. A.I. finds every tax deduction and starts to build your tax returns, saving you hours of tedious work. A dedicated CPA prepares your federal & state tax returns from start to finish and ensures your taxes return with precision. A.I. and CPAs work together to make your tax filing 20x faster and 5x cheaper. Act now and file your IRS tax returns with FlyFin before the last day to file taxes in 2024.

With FlyFin:

A.I. eliminates 95% of your work: A.I. analyzes your expenses, identifying every tax write-off automatically. This helps freelancers and self-employed individuals filing Schedule C with their 1040 forms save $7,800 on average, more than in previous years.

Dedicated CPA file taxes from start to finish : You're assigned an expert CPA to prepare your federal and state tax returns for your review and e-sign. When everything is ready and reviewed, the CPA will efile the income tax federal return, and your taxes are complete for the year.

Pay quarterly taxes: A.I. & CPAs help you accurately calculate your quarterly tax and ensure timely payments to avoid any IRS penalties.

Maximum tax refund guaranteed: 75% of tax filers miss out on taking all deductions. A.I. doesn’t forget anything and keeps track of every deduction 24/7. A dedicated CPA reviews every deduction, calculates your taxes precisely and suggests tax-saving strategies.

Federal & state taxes covered - No hidden costs: Our tax team members are experts in all aspects of US & international taxes. We file federal and state tax returns for all types of entities - Sole proprietors, LLCs, S-Corps, K-1s, W-2s, etc.

Tax preparer near me: Discover the convenience of virtual assistance with FlyFin, eliminating the need to search for a tax preparer. Our A.I. and expert CPAs are just a click away, ready to guide you through your IRS income tax return.

Full audit insurance at no cost: In case of an audit, your CPA handles the IRS. They evaluate your tax situation, prepare responses and communicate with the IRS on your behalf.

100% Money back guarantee: We offer a 100% refund if you are dissatisfied with the service & don't want our CPAs to prepare your federal tax returns.

FlyFin is a more affordable alternative than traditional tax services like TurboTax and H&R Block. FlyFin powers its bank-level security using Mastercard and Plaid, making FlyFin trusted by over 25,000 financial institutions. We protect your name, email address, phone number and more through compliance with the California Consumer Privacy Act, the highest data privacy standard in the US.