Vermont Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Vermont state income tax as a freelancer or 1099 contractor. Vermont has a progressive income tax with rates from 3.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$3,013
Total Tax Owed
$20,404

Summary

Total Income
$75,000
Total Taxes
-$20,404
After-Tax Income
$54,596
Effective Tax Rate(on total income)
27.2%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,101
Q2 (Apr-May)Due June 15
$5,101
Q3 (Jun-Aug)Due September 15
$5,101
Q4 (Sep-Dec)Due January 15 (next year)
$5,101
Each Quarterly Payment
$5,101

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,101. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Vermont Tax Overview for Freelancers

Vermont has a progressive income tax with rates from 3.35% to 8.75%, relatively high for a small state. Self-employed individuals in Vermont pay federal self-employment tax (15.3%) plus federal income tax, and Vermont state income tax on their net self-employment earnings.

Progressive rates up to 8.75%Social Security partially taxedRemote worker incentive programsHigh quality of life

Self-Employment Taxes in Vermont

If you work as a freelancer or independent contractor in Vermont, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Vermont state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Vermont Income Tax for Freelancers

Vermont has a progressive income tax with rates from 3.35% to 8.75%, relatively high for a small state.

Cost of Living for Freelancers in Vermont

Vermont's cost of living is about 5% above the national average. As a freelancer in Vermont, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Vermont Freelancers

  • Vermont's 8.75% top rate makes pre-tax deductions important for higher earners
  • Vermont taxes Social Security benefits following federal rules
  • Vermont's remote worker incentive program has attracted tech workers — check if you qualify
  • Vermont's low population and high quality of life attract remote workers willing to pay higher taxes

Key Vermont Tax Features

  • Progressive rates up to 8.75%
  • Social Security partially taxed
  • Remote worker incentive programs
  • High quality of life

Model Your Vermont Freelance Finances Over Time

This calculator shows your Vermont tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare Vermont with Other States

New HampshireNo income taxMassachusetts5% top rateNew York10.9% top rateTexasNo income taxFloridaNo income taxTennesseeNo income tax

Frequently Asked Questions

How is self-employment tax calculated in Vermont?
Self-employed workers in Vermont pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Vermont state income tax. Vermont has a progressive income tax with rates from 3.35% to 8.75%, relatively high for a small state.
How much will I owe in quarterly taxes as a freelancer in Vermont?
Your quarterly estimated tax payment in Vermont depends on your total tax liability — including SE tax, federal income tax, and Vermont state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Vermont freelancers?
Freelancers in Vermont can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Vermont state taxable income, providing additional state tax savings.
Does Vermont have any special taxes for self-employed workers?
Vermont does not have a separate self-employment tax. However, your net self-employment income is subject to Vermont's regular income tax (8.75% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Vermont?
The decision to form an LLC or S-Corp in Vermont depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Vermont tax professional for advice specific to your situation.

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State Tax-$2,384
FICA + Medicare-$4,973
Net Pay$50,181
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