Title 32, Title 32: Taxation and Finance

§ 5820. Purpose (a) This chapter is intended to conform the Vermont personal and corporate income taxes with the U.S. Internal Revenue Code, except as otherwise expressly provided, in order to simplify the taxpayer’s filing of returns, reduce the taxpayer’s accounting burdens, an…

§ 5821. Name of tax The tax imposed by this subchapter shall be known as the Vermont personal income tax. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)

§ 5822. Tax on income of individuals, estates, and trusts (a) A tax is imposed for each taxable year upon the taxable income earned or received in that year by every individual, estate, and trust, subject to income taxation under the laws of the United States, in an amount determ…

§ 5823. Vermont income of individuals, estates, and trusts (a) For any taxable year, the Vermont income of a resident individual is the adjusted gross income of the individual for that taxable year, and the Vermont income of a resident estate or trust is its gross income for the …

§ 5824. Adoption of federal income tax laws The statutes of the United States relating to the federal income tax, as in effect on December 31, 2024, but without regard to federal income tax rates under 26 U.S.C. § 1, are hereby adopted for the purpose of computing the tax liabili…

§ 5825. Credit for taxes paid to other states and provinces (a) A taxpayer of this State who was a resident individual, estate, or trust during any portion of a taxable year shall receive credit against the tax imposed, for that taxable year, by section 5822 of this title for inc…

§ 5825a. Credit for Vermont Higher Education Investment Plan contributions (a) A taxpayer of this State, including each spouse filing a joint return, shall be eligible for a nonrefundable credit against the tax imposed under section 5822 of this title of 10 percent of the first $…

§ 5828. Mobile home park sale; capital gain credit A taxpayer of this State shall receive a credit against the tax imposed under section 5822 or 5832 of this title for a qualified sale of a mobile home park. The credit shall be in the amount of seven percent of the taxpayer’s gai…

§ 5828b. Earned income tax credit (a) A resident individual or part-year resident individual who is entitled to an earned income tax credit granted under the laws of the United States shall be entitled to a credit against the tax imposed for each year by section 5822 of this titl…

§ 5828c. Child and dependent care credit A resident or part-year resident of this State shall be eligible for a refundable credit against the tax imposed under section 5822 of this title. The credit shall be equal to 72 percent of the federal child and dependent care credit allow…

§ 5830. Taxpayer identification numbers; credits (a) The Commissioner shall provide a process for an individual to claim the child tax credit or the earned income tax credit, or both, pursuant to subsections 5828b(a) and 5830f(a) of this title when the individual, the individual’…

§ 5830a. Interest tax (a) When another state imposes a tax upon interest earned by its residents on deposits in a lending institution located in this State, but exempts from such taxation deposits by its residents in lending institutions located within that state, then there is h…

§ 5830b. Tax credits; Entrepreneurs’ Seed Capital Fund (a) The initial capitalization of the Entrepreneurs’ Seed Capital Fund, as established in 10 V.S.A. § 291, up to $7,150,000.00 raised from Vermont taxpayers on or before January 1, 2020, shall entitle those taxpayers to a cre…

§ 5830c. Tax credits; charitable investments in housing (a) Credit authorized. A charitable investment approved by the Commissioner of Housing and Community Affairs in an eligible housing charity shall entitle a Vermont taxpayer to a credit against the tax imposed by sections 582…

§ 5830d. Deferral of income taxation; combat zone duty The provisions of 26 U.S.C. § 7508 shall apply to this chapter for the benefit of: (1) individuals called up for full-time active military duty as the result of the existence of a military conflict in an area designated as a …

§ 5830e. Retirement income; Social Security income (a) Social Security income. The portion of federally taxable Social Security benefits excluded from taxable income under subdivision 5811(21)(B)(iv) of this chapter shall be as follows: (1) For taxpayers whose filing status is si…

§ 5830f. Vermont child tax credit (a) A resident individual or part-year resident individual who is entitled to a child tax credit under the laws of the United States or who would have been entitled to a child tax credit under the laws of the United States but for the fact that t…

§ 5830g. Vermont veteran tax credit (a) A resident individual or part-year resident individual who served in the uniformed services shall be entitled to a refundable credit against the tax imposed by section 5822 of this title for the taxable year. (b) A taxpayer shall be eligibl…

§ 5831. Name of tax The tax imposed by this subchapter shall be known as the Vermont Corporate Income Tax. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)

§ 5832. Tax on income of corporations A tax is imposed for each calendar year, or fiscal year ending during that calendar year, upon the income earned or received in that taxable year by every taxable corporation, reduced by any Vermont net operating loss allowed under section 58…

§ 5832a. Digital business entity franchise tax (a) There is imposed upon every business entity that qualifies as and has elected to be taxed as a digital business entity an annual franchise tax equal to: (1) the greater of 0.02 percent of the current value of the tangible and int…

§ 5833. Allocation and apportionment of income (a) If the income of a taxable corporation is derived from any trade, business, or activity conducted entirely within this State, the Vermont net income of the corporation shall be allocated to this State in full. If the income of a …

§ 5834. Computation of gains and losses For the purpose of ascertaining gain or loss from the sale or other disposition of property, real, personal, or mixed, acquired before January 1, 1931, the taxpayer may, in lieu of the adjusted basis prescribed by the applicable U.S. Intern…

§ 5835. Construction of subchapter Nothing in this subchapter shall be construed to repeal or affect any of the provisions of chapter 211 of this title. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.)

§ 5836. Franchise tax on financial institutions (a) A tax is imposed for each calendar month or part thereof upon the franchise or privilege of doing business in this State of every corporation that is a financial institution as defined in 8 V.S.A. § 11101(32) that has a business…

§ 5838. Digital business entity election A corporation shall not be subject to the tax imposed by section 5832 of this title if the corporation qualifies as and elects to be taxed as a digital business entity for the taxable year. (Added 2009, No. 1 (Sp. Sess.), § H.54, eff. Jan.…

§ 5841. Requirement and rate of withholding (a) Every person who is required under the laws of the United States to withhold federal income tax from payments that are also subject to Vermont income tax shall deduct and withhold during the calendar year from the payments made by s…

§ 5842. Return and payment of withheld taxes (a) Every person required to deduct and withhold any amount under section 5841 of this title shall make return thereof and shall pay over that amount to the Commissioner as follows: (1) In quarterly payments to be made not later than 2…

§ 5843. Failure to account; maintenance of trust account If a person fails at any time to comply with the Commissioner’s requirement under subsection 5842(b) of this title to remit amounts deducted and withheld at such intervals and based upon such classifications as the Commissi…

§ 5844. Liability; penalty; trust for the State (a) Withholding requirement. Any person who fails to withhold the required tax or to pay it to the Commissioner as required under this subchapter shall be personally and individually liable for the amount of such tax, and if the per…

§ 5847. Withholding on sales or exchanges of real estate (a) Except as otherwise provided in this section, in the case of any sale or exchange of real property located in Vermont by a nonresident of Vermont, the transferee shall be required to withhold and transmit to the Commiss…

§ 5851. Definitions As used in this subchapter: (1) “Tax” means, for any taxpayer and for any taxable year, the income tax liability of the taxpayer for that taxable year under section 5822 of this title, reduced by any allowable credits against such tax. (2) “Required annual pay…

§ 5852. Payment of estimated income tax (a) Every individual, estate, and trust subject to taxation under section 5822 of this title (other than a person receiving at least two-thirds of his or her income from farming or fishing as defined under the laws of the United States) sha…

§ 5855. Payments as tax liability (a) Any payment of estimated tax required to be made under the provisions of this subchapter shall be deemed to be a tax liability for the purposes of this chapter. All of the provisions of this chapter, including the provisions governing interes…

§ 5856. Declaration of estimated tax (a) Every corporate taxpayer shall make a declaration of estimated tax for the taxable year in such form as the Commissioner shall prescribe, if the amount payable as estimated tax can reasonably be expected to be more than $500.00 for the tax…

§ 5857. Filing dates A declaration of estimated tax shall be filed on or before the 15th day of the fourth month of each taxable year, except that if the $500.00 minimum tax requirement is met: (1) after the fourth month and before the sixth month of the taxable year, the declara…

§ 5858. Payment dates A taxpayer required to file a declaration of estimated tax shall pay such estimated tax as follows: (1) If the declaration is required to be filed on or before the 15th day of the fourth month of the taxable year, the estimated tax shall be paid in four equa…

§ 5859. Assessment date, penalties, interest (a) Any amount paid as estimated tax shall be deemed assessed upon the due date for the taxpayer’s return for the taxable year (determined without regard to any extensions of time for filing such return). (b) Except as provided in subs…

§ 5861. Returns by individuals, trusts, and estates (a) Every individual, trust, or estate subject to taxation for any taxable year under section 5822 of this title shall file a Vermont personal income tax return for that taxable year if that person is required to file a United S…

§ 5861a. Returns by partnerships (a) Every partnership having any income derived from Vermont sources shall file with the Commissioner a Vermont partnership income tax return and a copy of the federal form 1065, including Schedules K and K-1 (U.S. Partnership Return of Income and…

§ 5862. Returns by corporations (a) Every corporation that is a taxable corporation, for any taxable year, shall file a Vermont corporate income tax return for that taxable year on or before the date a U.S. income tax return is required to be filed for that year by that corporati…

§ 5862a. Nongame Wildlife Account checkoff (a) Returns filed by individuals shall include, on a form prescribed by the Commissioner of Taxes, an opportunity for the taxpayer to designate funds to reimburse the State, in all or in part, for its General Fund appropriation to the No…

§ 5862b. Vermont Children’s Trust Foundation checkoff (a) Returns filed by individuals shall include, on a form prescribed by the Commissioner of Taxes, an opportunity for the taxpayer to designate funds to the Vermont Children’s Trust Foundation. (b) Amounts so designated shall …

§ 5862c. Repealed. 2009, No. 160 (Adj. Sess.), § 51(c)(1) repealed effective for taxable years beginning on and after January 1, 2010.

§ 5862d. Filing of federal form 1099 (a) Any individual or business required to file a federal form 1099 with respect to a nonresident who performed services within the State during the taxable year shall file a copy of the form with the Department. The Commissioner may authorize…

§ 5862e. Vermont Veterans’ Fund checkoff (a) Returns filed by individuals shall include, on a form prescribed by the Commissioner of Taxes, an opportunity for the taxpayer to designate funds to the Vermont Veterans’ Fund. (b) Amounts designated under subsection (a) of this sectio…