Vermont Estimated Tax Payments (2026)

Do you have to pay estimated taxes in Vermont?

Yes. If you're self-employed in Vermont and expect to owe Vermont income tax for 2026 after withholding, you should make quarterly estimated payments to the Vermont Department of Taxes. There's no penalty if you owe less than $500 when you file, but most self-employed people owe more than that. Your payments also need to cover Vermont's 0.11% child care contribution on self-employment income. Vermont taxes income at graduated rates up to 8.75%.

When are Vermont estimated taxes due in 2026?

Vermont's 2026 quarterly payments are due April 15, June 15, September 15, and January 15, in four equal installments, on the same calendar as your federal payments.

• Q1, April 15, 2026

• Q2, June 15, 2026

• Q3, September 15, 2026

• Q4, January 15, 2027

How much should you set aside for Vermont estimated taxes?

Plan to set aside 20% to 25% of your net self-employment profit to cover federal and Vermont taxes combined, then confirm the exact amount with the calculator above. On $50,000 of net self-employment profit, federal self-employment tax alone is about $7,065 (15.3% on 92.35% of your earnings). On top of that you'll owe about $2,667 in federal income tax and about $1,119 in Vermont income tax, for a total of about $10,852, or 22% of your profit.

How do you avoid a Vermont underpayment penalty?

To avoid a Vermont underpayment penalty, pay the smaller of 90% of your 2026 Vermont tax or 100% of your 2025 tax, in four on-time installments. Paying the full amount late doesn't help; each installment has to be on time. You can estimate a federal underpayment penalty here.

What deductions lower your Vermont estimated taxes?

Because estimated taxes are based on your net profit, every business write-off you claim lowers what you owe each quarter. Common deductions for 1099 workers, reported on Schedule C, include the home-office deduction, car mileage, phone and internet, software, and supplies. 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. The federal Qualified Business Income (QBI) deduction can remove up to 20% of your qualified business income from your federal taxes, but Vermont doesn’t allow it, so it doesn’t lower your Vermont tax.

Keeper's 1099 tax calculator estimates your bill after deductions, and our write-off guides list the deductions for your line of work.

Do self-employed people in Vermont owe local or other taxes too?

Yes, one small one. Vermont has no local income tax, but it charges a 0.11% child care contribution on self-employment income you earn while physically in Vermont, about $90 a year at $80,000 of profit. You include it in your Vermont estimated payments.

Note: Figures are current for the 2026 tax year and are for planning, not tax advice. Confirm the details with the Vermont Department of Taxes before you file.

How to file quarterly taxes in Vermont

Filing quarterly in Vermont means two separate payments each period: one to the IRS for federal tax, and one to the Vermont Department of Taxes for your state taxes. Here’s how to do it.

1. Confirm you need to pay. You owe estimated payments when tax isn’t withheld from enough of your income — 1099 or freelance work, investment income, or other untaxed income. Federal and Vermont run separate tests: the state generally requires estimated payments if you expect to owe $500 or more in Vermont tax after withholding and credits, subject to its safe-harbor rules.
2. Calculate your federal estimate. Use the Form 1040-ES worksheet (or tax software). Estimate your full-year income, add your federal income tax and self-employment tax, subtract anything already withheld from a paycheck, and split the rest across the year. The estimate at the top of this page gives you a starting number.
3. Calculate your Vermont estimate separately. Work out your Vermont amount on its own using Form IN-114. Don’t just send part of your federal payment to the state — the Vermont calculation is separate, based on your Vermont income tax, credits, and any Vermont withholding.
4. Pay the IRS. Pay through IRS Direct Pay (or EFTPS) and choose the estimated tax / Form 1040-ES option. Select tax year 2026 and save the confirmation number. This money counts only toward your federal taxes.
5. Pay Vermont separately. Make a second payment to myVTax and select the Form IN-114 estimated payment for 2026. Save that confirmation too. This money counts only toward your Vermont taxes.
6. Repeat on each deadline. For 2026, federal estimated payments are due April 15, 2026, June 15, 2026, September 15, 2026, and January 15, 2027. Vermont uses those same four dates.

Steps reflect 2026 rules and are for planning, not tax advice.