Key figures
Vermont accounting
2026, with sources
Graduated rates and a receipts-based minimum
Vermont taxes corporations on net income allocated or apportioned to the state at graduated rates: 6.0% on the first $10,000, 7.0% on the next $15,000 and 8.5% above $25,000. Above that level the 8.5% rate is effectively the marginal rate for any company with real profits.
The minimum tax, restructured in 2023, is set by Vermont gross receipts rather than income: $100 for $500,000 or less, $500 up to $1 million, $2,000 up to $5 million, $6,000 up to $300 million and $100,000 beyond. It is due even in a loss year, so a startup with $1.2 million of Vermont sales and no profit pays $2,000.
Single sales factor and Finnigan
Act 148 reshaped Vermont’s corporate tax from 2023. It moved to a single sales factor, so only sales into Vermont drive apportionment; repealed the throwback rule; switched unitary groups from the Joyce to the Finnigan method, treating the group as one taxpayer for nexus and the sales numerator; and stopped excluding 80/20 companies, so all US corporations in a unitary business are included.
For a startup with a Delaware parent and an operating subsidiary, that means one combined return and one nexus answer for the group. If a salesperson employed by the subsidiary works from Burlington, the whole group is taxable in Vermont.
Book-tax differences
The 10-year NOL life is short. A company that loses money in Vermont for several years before turning a profit should track each loss year’s expiry; losses older than ten years are gone, and the minimum tax still applies every year in between.
- Bonus depreciation under § 168(k) is decoupled; filers attach a reconciliation.
- Act 164 of 2026 retroactively conforms to much of the 2025 federal law but partly decouples, including for § 174A R&E expensing and § 168(n) property; the Department’s Federal Conformity Supplement sets out the adjustments.
- Vermont NOLs carry forward 10 years with no carryback, and can’t reduce Vermont net income below zero.
Deadlines
- The federal due date (Apr 15 for calendar years)Corporate income tax returnForm CO-411
- By the original due dateExtension to 30 days after the federal extended due date; tax still due on the original dateForm BA-403
- QuarterlyEstimated payments when Vermont tax is expected to exceed $500Form CO-414
The federal baseline
This page covers what Vermont adds. The federal rules underneath it apply here too.
Common questions
Does a loss-making corporation pay Vermont tax?
Yes. Every active corporation pays at least the minimum tax, set by Vermont gross receipts: $100 at $500,000 or less, $500 up to $1 million, $2,000 up to $5 million, $6,000 up to $300 million and $100,000 above that. A seed-stage startup with little Vermont revenue pays $100.
How does Vermont treat a group of companies?
Vermont uses the Finnigan method: the unitary group is one taxpayer. If any member’s activity in Vermont goes beyond what P.L. 86-272 protects, the whole group is taxable there, and all of the group’s Vermont sales go in the numerator, whichever member made them.
Accounting next door
- MAMassachusetts accountingMassachusetts taxes corporations at 8% of apportioned income plus $2.60 per $1,000 of property or net worth, with a $456 minimum. From 2025 apportionment is by sales only.
- NHNew Hampshire accountingNew Hampshire has no sales tax and no wage tax, but taxes business profits at 7.5% and an enterprise base of payroll, interest and dividends at 0.55%. It follows the Code as of 2018.
- NYNew York accountingNew York taxes a C-corp three ways: the state franchise tax, an MTA surcharge in the commuter district, and in the five boroughs a separate NYC Business Corporation Tax. All three apportion by where customers are.
Founder guides on this
- R&D taxThe R&D tax credit and Section 174A for startupsEngineering salaries can earn a federal R&D credit against payroll tax, and Section 174A lets you deduct US research again. What qualifies, what to track.
- US GAAPUS GAAP for early-stage startups, in plain EnglishAccrual accounting, revenue recognition (ASC 606), leases (ASC 842), stock compensation and capitalized software: what each means for a small company.
- FundraisingAudit-ready books before your Series AInvestors, lenders and auditors ask for the same things: accrual statements, reconciled accounts and support for every balance. How to be ready first.
- The closeWhy startups should close their books every monthA monthly close turns a bank balance into numbers an investor, an auditor or a 409A firm will accept. What it is, and why it gets expensive to skip.
More of the Vermont guide
- ReceivablesReceivables and sales tax in VermontSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in VermontPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in VermontWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in VermontRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in VermontCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.