YouTuber Taxes in Vermont - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a YouTuber in Vermont

Creating content amidst the Green Mountains and sharing Vermont’s beauty with the world through YouTube is a rewarding endeavor, but it also comes with tax responsibilities. As a self-employed content creator, understanding these obligations is crucial for staying compliant with both federal and Vermont state tax laws.

The IRS requires all self-employed individuals, including YouTubers, to report their income and expenses on Schedule C (Profit or Loss From Business) with Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment tax, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is paramount to ensure a smooth tax filing process.

How Vermont Handles Gig Worker Taxes

As a resident of Vermont, a state income tax return is required even if federal income tax isn’t owed. Vermont operates on a graduated income tax system, meaning the tax rate increases as income rises. For the 2025 tax year, Vermont utilizes Form INC-100, Individual Income Tax Return, as the primary form for reporting income, including self-employment earnings. This income will be reported on Schedule SE (Self-Employment Tax) at the federal level, and then transferred to Form INC-100. Vermont also has a Use Tax, which may be relevant if you purchase items online from out-of-state vendors that don’t collect Vermont sales tax. Vermont’s Department of Taxes offers resources and guidance specifically for self-employed individuals, and it’s highly recommended to consult their website for the most up-to-date information and forms. Vermont also allows for itemized deductions mirroring many federal deductions, but with potential state-specific adjustments. Estimated tax payments are generally required quarterly if your expected tax liability exceeds $500. Failure to pay estimated taxes can result in penalties. Vermont’s tax year follows the federal tax year, ending December 31st.

You can find more information and resources on the Vermont Department of Taxes website: https://tax.vermont.gov/

Key Tax Deductions for Home-Based YouTubers

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for business purposes. “Exclusive use” means that portion of your home is used solely for your YouTube channel – it cannot double as a guest room or family space. “Regular use” implies consistent and ongoing use for business activities. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of your mortgage/rent, utilities, etc., based on the square footage used for business).
• Hardware & Software: The cost of equipment essential to your YouTube channel, such as computers, cameras, microphones, lighting, and editing software (like Adobe Creative Cloud subscriptions), is generally deductible. For larger purchases, depreciation may be required over several years.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to your YouTube channel. Maintain detailed records to support this calculation.

Note on Mileage: As a home-based YouTuber, mileage deductions are less common. However, if you occasionally travel for client meetings, filming locations outside your home, or to purchase business supplies, you can deduct those business-related miles using the standard mileage rate (set annually by the IRS).

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the employer and employee portions of these taxes when working for a traditional employer. You are responsible for paying both portions as a self-employed individual. However, you can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).