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 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 gross | 15.0% |
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:
| Volume | Gross | Mileage off | Taxable profit | Vermont tax | Total tax | Rate 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% |
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:
| State | Its tax | vs Vermont |
|---|---|---|
| New Hampshire | No income tax | −$968 |
| New York | $1,261 | +$292 |
| Massachusetts | $1,445 | +$477 |
- New Hampshire has no income tax at all, so the same work done there costs $968 less in state tax than it does in Vermont.
- New York would take $292 more, $1,261 against Vermont's $968.
- Massachusetts would take $477 more, $1,445 against Vermont's $968.
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. In practice that means moving about $150 of every $1,000 payout into a separate account the day it lands, and sending roughly $1,461 to the IRS each quarter, no platform withholds any of this for you. 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. The form reports what the platform paid out, it knows nothing about your costs, and no one subtracts them for you. On this example 26% of the gross never becomes taxable income, but only for the host who kept the records to prove it.