Vermont Freelancer Deduction Calculator 2026

See how business deductions reduce your Vermont freelancer taxes in 2026. Deductions lower your net SE income, which reduces both your SE tax and Vermont state income tax.

Before business expenses and taxes

Business Deductions

$0.67/mi (2026 IRS rate)

Above-the-Line Deductions

Self-employed: 100% deductible

Deductions for Vermont Freelancers

Vermont has a four-bracket progressive income tax system with rates from 3.35% to 8.75%. Vermont's top rate of 8.75% applies to income above $249,700, but the 6.6% rate kicks in at just $49,400, meaning many middle-income earners face high marginal rates. Vermont's standard deduction of $7,650 for single filers is below average nationally. Vermont has no local city income taxes. Vermont consistently ranks among the higher-taxed states in New England, behind only Maine (up to 7.15%) and Massachusetts (5% for most earners), though Vermont's top rate significantly exceeds Massachusetts for high earners. Vermont's tax revenue funds a strong social safety net and public services. Compared to neighboring New Hampshire (no income tax), Vermont workers pay significantly more.

Frequently Asked Questions

What is the Vermont income tax rate for 2026?
Vermont has four brackets: 3.35% up to $49,400, 6.6% from $49,400 to $119,700, 7.6% from $119,700 to $249,700, and 8.75% above $249,700 for single filers.
Do Vermont cities charge local income tax?
No. No city in Vermont charges a local income tax on wages.
How does Vermont compare to New Hampshire for take-home pay?
New Hampshire has no state income tax on wages, making it significantly more favorable. A Vermont worker earning $80,000 pays roughly $3,800 more in state income tax than the same earner in New Hampshire.
Is Vermont one of the highest-taxed New England states?
Yes. Vermont's top rate of 8.75% is the highest in New England, though Massachusetts's 9% millionaires surtax applies at much higher income levels.