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Major Vermont Taxes

Vermont Corporate Income Tax

The corporate income tax is a net income tax based on income allocated or apportioned to Vermont. A minimum tax applies to all active Corporations (including LLCs electing to be taxes as C-Corporation) with the exception of Small Farm Corporations, which pay a minimum tax of $75. C-Corporations file form CO-411.

Note: S Corporations, Partnerships and Limited Liability Companies are subject to the Business Entity tax.

Bonus depreciation [IRC Section 168(k)] deducted on the Federal Return is NOT available when calculating Vermont Corporation Income Tax.

Beginning with tax year 2006, groups of affiliated corporations conducting unitary business are required to file a Unitary-Combined return.  See Regulation 1.5862(d). Unitary businesses file form CO-411U.

Beginning with tax year 2007, a Vermont Net Operating Loss (VNOL) is created.  Vermont no longer 'piggy-backs' to federal NOL utilization.  See Technical Bulletin 35 and 40 for details.

Marginal Tax Rates (effective beginning with tax year 2007):

Allocable to VT

Base Tax

Plus

of Amt. Over

$ 0 - 10,000

 

6.00%

$ 0

$ 10,001 - 25,000

$ 600

7.00%

$ 10,000

$ 25,001 - and more

$ 1,650

8.50%

$ 25,000

 

Minimum Annual Tax:

Starting with 2012, minimum tax increases to $300, $500, or $750, based on Vermont Gross Receipts. If:

Vermont Gross Receipts are:

Minimum Tax is:

$2,000,000 or less

$300

$2,000,001 - $5,000,000

$500

$5,000,001 and over

$750


For tax years prior to 2012, the minimum tax for every tax year, whether 12 months or a short period, is $250.

Exceptions:
Small Farm Corporation - Minimum tax of $75 (see 32 V.S.A. 5832(2)(A))

Forms and Instructions are available here.


E-Mail the Corporate and Business Income Tax Unit

 

Tax Types :
- Business Entity Income Tax
- Cigarette and Tobacco Taxes
- C Corporation Income Tax
- Estate and Gift Taxes
- Fiduciary Tax
- Franchise Tax
- Fuel Gross Receipts / Petroleum Distributor
- Health Care Claims Assessment/Tax
- Individual Income Tax
- Land Gains and Real Estate Withholding
- Meals and Rooms Tax
- Motor Vehicle Tax
- Property Tax
- Property Transfer Tax
- Sales and Use Tax

 
Vermont Department of Taxes, 133 State Street, Montpelier, Vermont 05633-1401