2026 tax year · Vermont
Marketplace seller taxes in Vermont
Etsy, eBay, Shopify 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 $6,771 in tax.
Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 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 | $2,575 |
| Federal income tax | $67 |
| Vermont income tax | $567 |
| Total tax | $3,210 |
| Effective rate on gross | 7.1% |
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 | $15,000 | $0 | $15,000 | $467 | $2,586 | 17.2% |
| Steady side income | $45,000 | $0 | $45,000 | $1,401 | $9,980 | 22.2% |
| Full-time | $72,000 | $0 | $72,000 | $2,941 | $17,744 | 24.6% |
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.
Selling into and out of Vermont
Income tax follows you: Vermont taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.
On $18,225 of profit, what the states around Vermont would charge:
| State | Its tax | vs Vermont |
|---|---|---|
| New Hampshire | No income tax | −$611 |
| New York | $734 | +$124 |
| Massachusetts | $911 | +$301 |
- New Hampshire has no income tax at all, so the same work done there costs $611 less in state tax than it does in Vermont.
- New York would take $124 more, $734 against Vermont's $611.
- Massachusetts would take $301 more, $911 against Vermont's $611.
Marketplace seller tax questions in Vermont
How much should a Vermont seller set aside?
About 7.1% of gross on the $45,000 example, $3,210 across self-employment tax, federal income tax and $567 to Vermont. In practice that means moving about $71 of every $1,000 payout into a separate account the day it lands, and sending roughly $802 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 $45,000 on my 1099-NEC match what Vermont taxes?
No. Vermont taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the Vermont bill is $567 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 60% of the gross never becomes taxable income, but only for the seller who kept the records to prove it.