State guide · Vermont · 2026 rules
S corporation in Vermont: what the election changes
In Vermont the election adds a $250 minimum tax and changes how the Child Care Contribution works. An LLC owner stays outside unemployment insurance.
Choose a state and enter your profit and salary to see the comparison.
The state
Vermont follows the federal S election. An S corporation pays no Vermont corporate income tax, except on income taxed to the corporation under federal law.
It does pay a flat $250 minimum tax each year, due by the original due date of its return on Form BI-471. If all owners live in Vermont and the business owes only the $250, it may file the short Form BI-476. A disregarded single-member LLC files no BI-471 and owes no entity tax.
An LLC that elects stays an LLC and keeps filing its $45 annual report. Vermont has no optional pass-through entity tax.
Unemployment insurance
The Vermont Department of Labor exempts members of an LLC from unemployment coverage, and the exemption follows the legal form, not the tax election. An LLC that elects keeps you outside it, so the calculator adds no unemployment tax on your salary.
A salaried officer of a corporation formed under state law is covered. A new employer pays 1% on the first $15,400 of wages in 2026.
The Child Care Contribution
Today you pay 0.11% of your net self-employment income with your personal return. After the election the business pays 0.44% of your wages, with no wage cap. It may withhold up to 0.11% from your pay. The business sends it in with Vermont income tax withholding on Form WHT-436.
Worked examples
A single-member LLC owner, single filer, 22% federal bracket, default payroll and return costs. The figure is total tax and added costs as an S corporation compared with staying as you are.
| Profit / salary | Statewide |
|---|---|
| $80,000 / $45,000 | $336 lower |
| $120,000 / $60,000 | $2,723 lower |
| $200,000 / $90,000 | $7,476 lower |
Starting payroll in Vermont
Register for state withholding and the Child Care Contribution with the Vermont Department of Taxes through myVTax. A corporation also registers for unemployment insurance with the Vermont Department of Labor.
Other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, DC
- West Virginia
- Wisconsin
- Wyoming
Sources
- 32 V.S.A. § 5911(a)
- 2026 Vt. Acts No. 164, Sec. 1 (H.933)
- 32 V.S.A. § 5915
- Vermont Department of Taxes, 2025 Form BI-471 Instructions
- 11 V.S.A. § 4012(a)(15)
- 32 V.S.A. chapter 151 (full text, no PTE election)
- Vermont Department of Labor, Quarterly Reporting & Taxable Wage Information
- 21 V.S.A. § 1324(b)
- Vermont Department of Labor, Unemployment Tax Rates
- Vermont Department of Labor, What is Exempt Employment?
- 32 V.S.A. § 10553(b)
- 32 V.S.A. § 10503(a)
Federal figures: IRS Publication 15 (2026), Schedule SE and Form 2553 instructions. Every figure was read on an official page and checked a second time. Checked October 24, 2026. How we check facts.