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State income tax: Up to 8.75%

Vermont Self-Employment Tax Calculator 2026

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Vermont freelancers pay federal SE tax plus up to 8.75% Vermont income tax — one of the higher state rates.

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Gross income minus business expenses

Tax Information Notice

This content is for informational and educational purposes only. It does not constitute tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified CPA or Enrolled Agent for your specific situation.

Vermont self-employment tax questions

What is the self-employment tax rate in Vermont?

The self-employment tax rate is 15.3% on net self-employment earnings up to $184,500 for 2026, then 2.9% above that. It is a federal tax, so the rate in Vermont is the same as every other state. Vermont separately taxes that income at up to 8.75%.

Do freelancers in Vermont pay self-employment tax?

Yes. Every freelancer and independent contractor in the US, Vermont included, owes self-employment tax once net self-employment earnings reach $400 for the year. You can deduct half of the SE tax from gross income on your federal return.

Does Vermont have its own self-employment tax?

No. Vermont does not levy a separate self-employment tax. It taxes self-employment income as ordinary income at up to 8.75%, which is a different tax from the federal 15.3% SE tax. Vermont freelancers pay federal SE tax plus up to 8.75% Vermont income tax — one of the higher state rates.

How much of self-employment tax is deductible in Vermont?

Half of your self-employment tax is deductible from gross income on your federal return, which lowers federal income tax but not the SE tax itself. The deduction is federal; Vermont treatment follows its own rules for calculating state taxable income.

Tax Information Notice

This content is for informational and educational purposes only. It does not constitute tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified CPA or Enrolled Agent for your specific situation.