1099 Quarterly Taxes in Vermont (2025-2026)
If you're self-employed in Vermont — freelancer, contractor, gig worker, or single-member LLC — you owe quarterly estimated taxes to two agencies: the IRS (federal) and Vermont Department of Taxes (state). Vermont's top marginal rate is 8.75%, applied progressively. Getting your estimates right matters because under-payment penalties stack on top of the actual tax owed.
Vermont state income tax (2025)
Vermont uses a progressive bracket system on top of federal tax. For single filers in 2025:
| Income (single filer) | Marginal rate |
|---|---|
| $0 – $45,400 | 3.35% |
| $45,400 – $110,050 | 6.60% |
| $110,050 – $229,550 | 7.60% |
| $229,550+ | 8.75% |
How to pay Vermont estimated taxes
Federal estimated tax due dates (April 15, June 16, September 15, 2026, and January 15, 2027) apply to your Vermont state estimated payments as well — most states piggyback on the federal schedule. Pay Vermont taxes through the Vermont Department of Taxes's online portal: myvtax.vermont.gov. You can also mail Form IN-114 with a check.
Vermont-specific quirk freelancers miss
Vermont's top rate of 8.75% kicks in above $229,550 for singles. The state allows a federal QBI deduction at half the federal amount — unusual partial conformity that catches many high-earning freelancers off guard.
Common deductions for Vermont freelancers
- Vermont allows the same business expenses (home office, mileage, software, etc.) as federal.
- Half of SE tax is deductible federally; check Vermont's rules for state conformity.
- VT allows half of federal QBI deduction. Half-SE-tax deduction allowed.
- SEP-IRA / Solo 401(k) contributions reduce both federal and Vermont taxable income.
- Self-employed health insurance premiums are deductible federally.