{"place":"Vermont","kind":"state","asOf":"2026-10-07","url":"https://gigaverse.ai/local/vermont","state":{"code":"VT","name":"Vermont","slug":"vermont","incomeTax":{"type":"progressive","flatRate2026":null,"lowestRate2026":3.35,"topRate2026":8.75,"topRateStartsSingle":null,"notes":"Rates are percentages: 3.35%, 6.6%, 7.6% and 8.75% (32 V.S.A. 5822, https://legislature.vermont.gov/statutes/section/32/151/05822). Brackets are adjusted for inflation each year, and Vermont had not published 2026 rate schedules as of October 7, 2026. For 2025, the 8.75% rate started at $249,700 of taxable income for single filers. If AGI exceeds $150,000, tax is the greater of the rate-schedule amount or 3% of AGI (less U.S. obligation interest).","source":"https://tax.vermont.gov/sites/tax/files/documents/TaxRateSched-2025.pdf"},"estimatedTax":{"form":"IN-114","rule":"Pay through withholding or estimates at least the lesser of 100% of last year's Vermont tax or 90% of this year's, or you face penalties and interest if you owe more than $500 when you file.","schedule":"Same dates as federal: April 15, June 15 and September 15, 2026, and January 15, 2027.","source":"https://tax.vermont.gov/sites/tax/files/documents/IN-114-2026.pdf"},"minimumWage2026":{"standard":14.42,"tippedCash":7.21,"tipCreditAllowed":true,"notes":"$14.42 since January 1, 2026, for employers with 2 or more employees, adjusted every year by a set formula. The basic wage for service or tipped employees is $7.21: hotel, motel, tourist place or restaurant workers who regularly receive more than $120 a month in tips. The employer must make up any shortfall to $14.42.","source":"https://labor.vermont.gov/sites/labor/files/documents/Min%20Wage%20Poster%202026.pdf"},"soleProprietorTaxes":[{"name":"Vermont business entity minimum tax","summary":"Partnerships, multi-member LLCs and S corporations active in Vermont file Form BI-471 and pay a $250 minimum annual entity tax. A single-member LLC that is disregarded federally and reports on Schedule C does not file BI-471. A one-owner business that elects S corporation status would owe the $250.","source":"https://tax.vermont.gov/sites/tax/files/documents/BI-471-Instr-2025.pdf"}],"contractorLaws":[{"name":"ABC test for unemployment insurance (21 V.S.A. 1301(6)(B))","summary":"Paid work is presumed to be employment unless the business proves three things: the worker is free from control, the work is outside the business's usual course or places of business, and the worker is customarily engaged in an independently established trade or business.","source":"https://legislature.vermont.gov/statutes/section/21/017/01301"}],"notes":null},"stateRetirementProgram":{"state":"Vermont","code":"VT","programName":"VT Saves","status":"active","employerMandate":"Employers with 5+ employees, in business 2+ years, with no qualified plan","mandateMin":5,"keyDates":"S.135 signed June 1, 2023; effective January 2025; first registration deadline March 1, 2025. Penalties are tiered, capped at $10 per employee before October 1, 2025 and rising thereafter.","covers1099":false,"selfEnroll":"unverified","sourceUrl":"https://vermontsaves.com","note":"SOURCES CONFLICT on the threshold: an ADP compliance table gives 5+ employees while another vendor page reports it has since dropped to 2+. The 5+ figure is the one that could be sourced; confirm with the Treasurer before relying on it. Self-enrolment unverified.","lastVerified":"2026-09-09"},"city":null,"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/vermont/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/vermont/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/vermont/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/vermont/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/vermont/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/vermont/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/vermont/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}