2026 tax year · Vermont

Rental host taxes in Vermont

Airbnb, Turo and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in Vermont that gap is worth $2,567 in tax.

Take a driver who grossed $39,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the rental host page $10,100 comes off and $28,900 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$4,083
Federal income tax$861
Vermont income tax$900
Total tax$5,844
Effective rate on gross15.0%

Earning more in Vermont

A single filer taking the standard deduction, 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:

VolumeGrossMileage offTaxable profitVermont taxTotal taxRate on gross
Part-time $13,000 $0 $13,000 $405 $2,242 17.2%
Steady side income $39,000 $0 $39,000 $1,214 $8,411 21.6%
Full-time $63,000 $0 $63,000 $2,389 $15,117 24.0%

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.

Local taxes on a Vermont let

The income tax below is only part of it. Short-term lets attract occupancy, lodging or transient taxes levied by the city or county rather than Vermont, often at rates that dwarf the state income tax. Some platforms collect and remit them; some collect only part; in some places the host is on the hook entirely. That is a local question this calculator cannot answer, and it is the one hosts most often get wrong.

On $28,900 of profit, what the states around Vermont would charge:

StateIts taxvs Vermont
New Hampshire No income tax −$968
New York $1,261 +$292
Massachusetts $1,445 +$477

Rental host tax questions in Vermont

How much should a Vermont host set aside?

About 15.0% of gross on the $39,000 example, $5,844 across self-employment tax, federal income tax and $900 to Vermont. Set aside from each payout rather than finding it in April.

Does the $39,000 on my 1099-NEC match what Vermont taxes?

No. Vermont taxes profit, not gross. After $10,100 of deductions the taxable figure is $28,900, so the Vermont bill is $900 rather than what gross alone would suggest.

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