2026 tax year · Vermont
Delivery and rideshare driver taxes in Vermont
DoorDash, Uber, Lyft and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is mileage, in Vermont that gap is worth $3,698 in tax.
Take a driver who grossed $42,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the delivery and rideshare driver page $14,505 comes off and $27,495 is left as taxable profit. That profit is what Vermont and the IRS charge against.
What that leaves you owing in Vermont
Vermont uses graduated 2026 income tax brackets topping out at 8.75%, across 4 brackets, on top of federal income tax and self-employment tax.
| Self-employment tax | $3,885 |
| Federal income tax | $756 |
| Vermont income tax | $856 |
| Total tax | $5,497 |
| Effective rate on gross | 13.1% |
Earning more in Vermont
A single filer taking the standard deduction, standard mileage method, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Vermont tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time, a few evenings | $15,000 | $4,826 | $10,174 | $317 | $1,754 | 11.7% |
| Steady side income | $42,000 | $13,365 | $28,635 | $892 | $5,778 | 13.8% |
| Full-time dashing | $68,000 | $22,275 | $45,725 | $1,424 | $10,170 | 15.0% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Vermont specifics that change the number
Vermont is one of the twelve states that still taxes Social Security benefits, which matters if you are drawing benefits alongside self-employment income.
Driving across a Vermont line
Driving income is sourced to where the wheels were, not where you live. Take a fare or a delivery that ends in the next state and that state can claim the income earned inside it. Most drivers near a border never file the second return, the amounts are small and the platforms do not split earnings by state. But the obligation exists, and it is the state you drove INTO that would come asking.
On $27,495 of profit, what the states around Vermont would charge:
| State | Its tax | vs Vermont |
|---|---|---|
| New Hampshire | No income tax | −$921 |
| New York | $1,181 | +$260 |
| Massachusetts | $1,375 | +$454 |
- New Hampshire has no income tax at all, so the same work done there costs $921 less in state tax than it does in Vermont.
- New York would take $260 more, $1,181 against Vermont's $921.
- Massachusetts would take $454 more, $1,375 against Vermont's $921.
Delivery and rideshare driver tax questions in Vermont
How much should a Vermont driver set aside?
About 13.1% of gross on the $42,000 example, $5,497 across self-employment tax, federal income tax and $856 to Vermont. Set aside from each payout rather than finding it in April.
Does the $42,000 on my 1099-NEC match what Vermont taxes?
No. Vermont taxes profit, not gross. After $14,505 of deductions the taxable figure is $27,495, so the Vermont bill is $856 rather than what gross alone would suggest.