Vermont Business Tax Account
You need a Vermont business tax account if your LLC sells taxable goods or services, rents rooms, sells meals or alcohol, or hires employees. Register online with the Vermont Department of Taxes for a separate account for each tax type.
Tax Deadlines and Rates
- Federal Income Tax Deadline: The normal 7/15 deadline for paying any federal income tax still owed for the 2019 tax year is postponed to 7/15.
- Corporate Federal Income Tax Deadline: The normal deadline for filing your corporation’s 2019 federal income tax return (Form 1120) is 4/15/20.
- Vermont State Payroll Tax Rates 2021: Range from 3.35% to 8.75%. Employees who make $204,001 or more will hit the highest tax bracket. No local taxes are present.
Obtaining Licenses and Identification Numbers
- Secure an EIN: Known as a Vermont tax ID number, important for business operations.
- Vermont Sales Tax License: Necessary for collecting sales tax on physical properties sold or leased.
- Form S-1: Apply for a Vermont Business Tax Account at www.state.vt.us/tax or by calling (802) 828-2515.
Vermont offers opportunities for businesses with local values. Register a business tax account through Vermont Online Business Service Center or directly with the Department of Taxes.
Filing Vermont State Taxes
The most efficient and secure way to file Vermont tax returns is electronic filing, with direct deposit as the fastest refund method. Processing begins on January 24. Using TurboTax desktop editions incurs a $19.99 fee to e-file a state income tax return. Avoid this fee by printing and mailing the return.
Nonresident Tax Filing
The general rule of thumb is that you need to file taxes where you earned the money. Therefore, nonresident state returns are necessary in the state where you worked.
Miscellaneaous Information
VTubers can deduct the cost of PC equipment used for home broadcasting from their expenses.
Vermont State Income Tax Obligations
Do I have to pay Vermont state income tax? Vermont has a progressive state income tax with rates ranging from 3.55% to 9.4% for higher incomes.
- Property Tax Rate: The average is 1.86%.
- Estate Tax: Vermont taxes estates over $5 million at 16%.
- Sales Tax: Ranges from 6% to 7%.
A Tax ID or Employer ID Number is essential for business identification.
To file as a nonresident, list total income on your federal return in one column and Vermont-sourced earnings in another. The Vermont percentage is your nonresident percentage.