Vermont taxes

Vermont taxes personal income at 3.35% to 8.75%. A sole proprietor owes no separate business tax, but pays a small child care contribution on self-employment earnings through the personal return. Partnerships and S corporations pay a $250 minimum entity tax every year. C corporations pay 6% to 8.5% corporate income tax, with a minimum set by Vermont sales that is owed even in a year with a loss.

Personal income tax

Vermont residents file Form IN-111. The rate is 3.35% on the first $49,400, 6.6% on the next $70,300, 7.6% on the next $130,000, 8.75% on everything above $249,700 of taxable income for single filers. Married couples filing jointly pay 3.35% on the first $82,500, 6.6% on the next $116,950, 7.6% on the next $104,550, 8.75% on everything above $304,000. Once adjusted gross income passes $150,000, the tax is at least 3% of that income, not counting interest from U.S. government bonds.

Vermont has no itemized deductions. Everyone takes the standard deduction, plus $1,250 for each box checked for age 65 or blindness on the federal return, and a $5,300 exemption for each person on the return. For gifts to charity, every filer gets a credit of 5% of the first $20,000 given.

If you are self-employed, you also pay Vermont's child care contribution: 0.11% of your self-employment earnings made in Vermont, added to the tax on Form IN-111.

Return

Form IN-111

Rates

3.35%, 6.6%, 7.6%, 8.75%

Standard deduction

$7,650 single, $11,450 head of household, $15,300 married filing jointly, plus $1,250 for each age 65 or blindness box

Personal exemption

$5,300 for each person on the return

Minimum tax

Above $150,000 of adjusted gross income, at least 3% of it

Social Security

Fully exempt below $55,000 of adjusted gross income ($70,000 married filing jointly), shrinking to nothing at $65,000 ($80,000). You can choose this or up to $10,000 of certain government pensions, not both

Capital gains

Up to $5,000 of long-term gains excluded

Child care contribution

0.11% of Vermont self-employment earnings

Sole proprietor

A sole proprietor with no LLC files nothing with Vermont for the business. The annual report is only for registered entities, and the $250 minimum entity tax comes with the pass-through return, Form BI-471, which a sole proprietor does not file.

Your profit is taxed on your own Form IN-111, where you also pay the child care contribution of 0.11% of your Vermont self-employment earnings.

Single-member LLC

Every Vermont LLC files an annual report with the Secretary of State each year, however few members it has. It is due within three months of the fiscal year end on record, and it is owed whatever the business earned. The fee is not shown here because it has not been confirmed, so check the amount with the Secretary of State.

A single-member LLC that reports on Schedule C does not file Form BI-471, so it does not owe the $250 minimum entity tax. The profit is taxed on your own Form IN-111, along with the child care contribution on your self-employment earnings.

Partnership

A Vermont partnership, including an LLC taxed as one, files Form BI-471, the business income tax return. It pays a $250 minimum entity tax every year, whatever its profit. Two narrow exceptions can remove it: Vermont's Investment Club exception, and a federal Section 761 election out of filing Form 1065.

The profit passes through to the partners, who report it on their own returns. For any partner who lives outside Vermont, the partnership must pay tax on that partner's Vermont income, either for each partner or on a composite return, at Vermont's second lowest personal rate, 6.6%.

S corporation

A Vermont S corporation files Form BI-471 and pays the $250 minimum entity tax every year, whatever its profit. The same two narrow exceptions apply: the Investment Club exception and a Section 761 election.

The profit passes through to the shareholders, who report it on their own returns. For any shareholder who lives outside Vermont, the corporation must pay tax on that shareholder's Vermont income at 6.6%, either for each shareholder or on a composite return.

C corporation

A C corporation files Form CO-411 and pays corporate income tax of 6% on the first $10,000, 7% on the next $15,000, 8.5% above $25,000 of the income apportioned to Vermont. A corporation selling into other states counts only its Vermont share, measured by Vermont sales over total sales.

The tax is never less than a minimum set by the corporation's Vermont gross receipts, and the minimum is owed even in a year with a loss: $100 up to $500,000, $500 up to $1,000,000, $2,000 up to $5,000,000, $6,000 up to $300,000,000, $100,000 above $300,000,000.

Return

Form CO-411

Corporate income tax

6% on the first $10,000, 7% on the next $15,000, 8.5% above $25,000

Minimum tax, by Vermont gross receipts

$100 up to $500,000, $500 up to $1,000,000, $2,000 up to $5,000,000, $6,000 up to $300,000,000, $100,000 above $300,000,000

Multi-state profit

Vermont sales over total sales

Estimate your state tax

Pick your business type and enter this year's numbers to see the state business tax Vermont charges. It assumes all your sales are in Vermont.

An estimate for planning, not tax advice.

Sources

• Vermont Income Tax Return Booklet, 2025
• Vermont Form IN-111 Instructions, 2025
• Vermont Form IN-111, 2025
• Vermont Schedule IN-153, 2025
• tax.vermont.gov Form BI-471 instructions, 2024 (single-member LLCs are not required to file)
• sos.vermont.gov Annual/Biennial Reports (filing requirement and timing; FEE not confirmed)
• tax.vermont.gov 2025 Form CO-411 Instructions: the Tax Computation Schedule, the minimum tax bands by Vermont gross receipts, and the 2023 move to single sales factor

Last reviewed August 2026.