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 actually 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 gross7.1%

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:

VolumeGrossMileage offTaxable profitVermont taxTotal taxRate 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%

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.

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:

StateIts taxvs Vermont
New Hampshire No income tax −$611
New York $734 +$124
Massachusetts $911 +$301

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. 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.

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