Vermont 1099 taxes: a 2026 guide for the self-employed
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Krislyn ChanKrislyn is Chief Growth Officer at Keeper. At Keeper, she strives to make expert-level tax strategies that used to require a traditional CPA accessible to all. Prior to Keeper, she was at Curology, where she helped bring custom, prescription-grade skincare out of the dermatologist's office to millions of faces.
Key takeaways
- 1099 income in Vermont is subject to three taxes: 15.3% federal self-employment tax, 10% to 37% federal income tax, and 3.35% to 8.75% Vermont income tax.
- Set aside 20–25% of your profit in a high-yield savings account, so the money earns interest until your tax payments are due. For a single filer with no other income, total tax runs from 20.6% of profit at $40,000 to 31.8% at $200,000.
- Vermont’s income tax rate jumps from 3.35% to 6.6%. For a single filer, the jump comes at $50,750 of taxable income, so most self-employed people pay both rates.
- Vermont adds a 0.11% child care contribution. It’s charged on self-employment income you earn in Vermont, about $90 a year at $80,000, and you pay it with your Vermont estimated payments.
- Vermont estimated payments are due on the federal dates: April 15, June 15, and September 15, 2026, and January 15, 2027. Get your amounts with the Vermont quarterly tax calculator.
How much tax do 1099 workers pay in Vermont?
These tables show estimated 2026 tax on self-employment profit, the amount left after business expenses. They assume this is your only income, you take the standard deduction, and you have no kids or tax credits.
Single filer, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | Vermont income tax |
|---|---|---|---|---|---|
| $40,000 | $8,235 | 20.6% | $5,652 | $1,775 | $808 |
| $60,000 | $13,468 | 22.4% | $8,478 | $3,559 | $1,431 |
| $80,000 | $19,044 | 23.8% | $11,304 | $5,344 | $2,396 |
| $100,000 | $25,988 | 26.0% | $14,130 | $8,235 | $3,623 |
| $150,000 | $44,333 | 29.6% | $21,194 | $16,413 | $6,725 |
| $200,000 | $63,688 | 31.8% | $28,234 | $25,196 | $10,257 |
Married filing jointly, one self-employed spouse, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | Vermont income tax |
|---|---|---|---|---|---|
| $40,000 | $6,421 | 16.1% | $5,652 | $398 | $371 |
| $60,000 | $11,356 | 18.9% | $8,478 | $1,885 | $994 |
| $80,000 | $16,470 | 20.6% | $11,304 | $3,550 | $1,616 |
| $100,000 | $21,703 | 21.7% | $14,130 | $5,335 | $2,239 |
| $150,000 | $35,715 | 23.8% | $21,194 | $9,795 | $4,725 |
| $200,000 | $52,499 | 26.2% | $28,234 | $16,472 | $7,793 |
How Vermont taxes 1099 income
If you’re a freelancer, independent contractor, gig worker, or solo business owner in Vermont, your net profit (1099 income minus business expenses) is taxed three ways:
- Federal self-employment tax: 15.3% on most of your profit (92.35% of it). That’s 12.4% for Social Security, on earnings up to $184,500 in 2026, plus 2.9% for Medicare with no cap. It replaces the payroll taxes an employer would split with you. Estimate it with the self-employment tax calculator.
- Federal income tax: 10% to 37% on what’s left after three deductions: the $16,100 standard deduction ($32,200 married filing jointly), half of your self-employment tax, and the 20% QBI deduction.
- Vermont income tax: 3.35% to 8.75% on your profit minus half of your self-employment tax, Vermont’s standard deduction of $7,650 ($15,300 married filing jointly), and a $5,400 exemption for each person on your return. You report it on Form IN-111.
On top of those, Vermont charges a 0.11% child care contribution on self-employment income. It’s small, and it isn’t in the totals on this page.
What’s different about Vermont
- A big jump after the first bracket. Vermont’s rate goes from 3.35% to 6.6% at $50,750 of taxable income for single filers ($84,700 married filing jointly). The top 8.75% rate starts at $256,300.
- Its own standard deduction. Vermont’s is $7,650 for single filers ($15,300 married filing jointly), less than half the federal $16,100, but its $5,400 exemption per person narrows the gap. As of October 14, 2026, Vermont hasn’t published its 2026 standard deduction, so this page uses the 2025 amount.
- No QBI deduction. The IRS lets you deduct up to 20% of your business profit. Vermont doesn’t. At $80,000 of profit, that’s $11,650 you deduct on your federal return but still pay Vermont tax on.
- Some federal deductions carry over. Because Vermont starts with the income on your federal return, three deductions you take there also lower your Vermont tax: half of your self-employment tax, self-employed health insurance premiums, and self-employed 401(k) contributions.
A self-employed person in Vermont at $80,000 pays $19,044: about $217 less than in California and $2,396 more than in Texas, which has no income tax.
Vermont income tax rates for 2026
These are Vermont’s preliminary 2026 rates. Married couples filing jointly use wider income ranges than single filers.
| Rate | Single | Married filing jointly |
|---|---|---|
| 3.35% | $0 – $50,750 | $0 – $84,700 |
| 6.6% | $50,750 – $122,850 | $84,700 – $204,750 |
| 7.6% | $122,850 – $256,300 | $204,750 – $312,050 |
| 8.75% | Over $256,300 | Over $312,050 |
Example: Vermont tax on $80,000 of 1099 income
Here’s the math for a single self-employed person in Vermont with $80,000 of profit and no other income.
| Step | Amount |
|---|---|
| Self-employment tax: $80,000 × 92.35% × 15.3% | $11,304 |
| $80,000 minus half of self-employment tax | $74,348 |
| Income the IRS taxes: $74,348 minus the $16,100 standard deduction and $11,650 QBI deduction | $46,599 |
| Federal income tax | $5,344 |
| Income Vermont taxes: $74,348 minus the $7,650 standard deduction (2025 amount) and $5,400 exemption | $61,298 |
| Vermont income tax | $2,396 |
| Total 2026 tax | $19,044 (23.8%) |
Self-employment tax is the biggest piece. Every dollar you write off as a business expense lowers all three taxes, since your self-employment tax, federal income tax, and Vermont income tax are all based on your profit after expenses.
What tax write-offs can I claim?
How to lower your Vermont 1099 tax bill
At $80,000 of profit, every $1,000 of business expenses you deduct cuts about $292 from your total tax. Common write-offs for self-employed people in Vermont include:
- Your phone and internet, for the share you use for work
- Car expenses, using a set rate per mile or your actual costs (compare the two)
- A home office, if you use part of your home regularly and only for work (estimate yours)
- Software, equipment, and supplies you buy for your business
- Health insurance premiums you pay as a self-employed person
- Retirement contributions to a SEP-IRA or Solo 401(k)
Most of these are small purchases spread across a year of bank and card statements, which is where they get missed. See the full list of tax write-offs for self-employed people.
Track and claim every eligible deduction with Keeper
Keeper scans your accounts for write-offs and files your return — with tax pros reviewing every one.
Try it freeVermont estimated tax payments
If you have self-employment income, Vermont expects you to make estimated payments to the Vermont Department of Taxes online through myVTax or with Form IN-114. They’re due on the same dates as your federal payments, and each is a quarter of your Vermont tax:
| Payment | Share of your Vermont tax | Due date |
|---|---|---|
| 1st | 25% | April 15, 2026 |
| 2nd | 25% | June 15, 2026 |
| 3rd | 25% | September 15, 2026 |
| 4th | 25% | January 15, 2027 |
- Federal payments are separate: you pay the IRS on the same four dates with Form 1040-ES.
- To avoid a penalty for paying too little, pay at least 90% of this year’s Vermont tax or 100% of last year’s in on-time payments. Vermont has no higher bar for high earners, and there’s no penalty if you owe less than $500 when you file.
- Include the child care contribution: each payment should cover 0.11% of the self-employment income you earned in Vermont that quarter.
Get your payment amounts with the Vermont quarterly tax calculator.
Should you form an LLC or S corp in Vermont?
You don’t need one to work as an independent contractor. If you work for yourself without forming a business, you report 1099 income on Schedule C, part of your regular tax return, and pay the taxes above.
- LLCs cost $155 to form and $45 a year for the annual report, due within three months after your fiscal year ends (March 31 for most).
- S corps can make sense once your profit is around $80,000, when the self-employment tax savings get significant. You pay yourself a reasonable salary and take the rest as profit payouts (distributions) that aren’t subject to self-employment tax.
Run the numbers for your income to see what you’d save.
6 sources
- 2026 Form IN-114 instructions, with 2026 preliminary tax rates (Vermont Department of Taxes) · tax.vermont.gov
- 2026 income tax withholding instructions, tables, and charts · tax.vermont.gov
- 2025 Vermont income tax booklet (standard deduction and exemption) · tax.vermont.gov
- Business fees and statutes (Vermont Secretary of State) · sos.vermont.gov
- IRS releases tax inflation adjustments for tax year 2026 · irs.gov
- Contribution and benefit base · ssa.gov
This article is for informational purposes only and isn’t tax, legal, or financial advice. Tax rules change and depend on your situation, so talk to a tax professional about yours.
