2025 Tax Year

Vermont Side Hustle Tax Calculator

Calculate your Vermont state tax (6.60%), federal tax, and self-employment tax on 1099 income.

VT6.60%

650,000 residents

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2025 rates

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Last updated: January 2026 · Data from IRS Rev Proc 2024-40

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State

W-2 Income (from your day job)

Side Hustle Income *

Business Expenses (optional)

Vermont side hustlers face progressive income tax rates from 3.35% to 8.75%. The Green Mountain State has one of the higher top rates in the nation, though this only applies to income over $229,550. Vermont has no local income taxes, and the state offers various credits for low-to-moderate income earners.

Vermont Tax Guide

How Side Hustle Taxes Work in Vermont

Vermont uses a four-bracket progressive system:

**Vermont state tax rates (2025):** - 3.35% on income up to $45,400 (single) - 6.6% on income $45,400-$110,050 - 7.6% on income $110,050-$229,550 - 8.75% on income over $229,550

**Key features:** - No local income taxes - Various income-based credits available - Higher rates than neighboring New Hampshire (0%)

Example

What Vermont Side Hustlers Owe

Let's say you're a single filer in Burlington with a $52,000 W-2 job and $15,000 in side hustle income from freelance graphic design, with $2,500 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $12,500 - Federal SE tax (15.3% of 92.35%): ~$1,768 - Federal income tax on side income: ~$2,750 (22% bracket) - Vermont state tax (6.6%): ~$825 - **Total additional tax: ~$5,343**

Important Dates

Vermont Tax Deadlines 2025

Vermont estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026

Use Vermont Form IN-114 for state estimated tax payments.

Save Money

Common Deductions for Vermont Freelancers

Vermont deductions for side hustlers: - Vermont starts with federal adjusted gross income - All Schedule C business expenses apply - Home office expenses - Business mileage (67 cents/mile for 2025) - Vermont offers an Earned Income Tax Credit

Common Questions

Vermont Side Hustle Tax FAQ

What is Vermont's tax rate on side hustles?

Most side hustlers pay Vermont's 6.6% rate (income $45,400-$110,050). The 8.75% rate only applies to income over $229,550.

Does Burlington have a city income tax?

No, Burlington and all Vermont cities do not have local income taxes. You only pay the state tax rate.

How does Vermont compare to New Hampshire?

Vermont has significantly higher taxes. New Hampshire has 0% income tax, while Vermont rates range from 3.35% to 8.75%. Many freelancers consider this when choosing where to live.

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