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). C-Corporations file Form CO-411, Corporate Income Tax Return.

Due Dates

Income Tax Returns Form CO-411, Corporate Income Tax Return, is due on the date prescribed for filing under the Internal Revenue Code.
Extensions Corporations holding Federal extensions may file thirty days after the extended Federal due date. These Corporations must file Form BA-403, Application for Extension of Time to File Vermont Corporate/ Business Income Tax Return, by the original return due date. An extension of time to file does not extend the time to pay the tax due. Any tax due must be paid by the original due date of the return.
Estimated Payments Any corporation anticipating a Vermont tax liability over $500 must make estimated payments of the 15th day of the 4th, 6th, 9th, and 12th months of the corporation’s taxable year. Use payment voucher Form CO-414, Corporate Estimated Tax Payment Voucher.

Please note: S Corporations, Partnerships and Limited Liability Companies are subject to the Business Income Tax.

Beginning with tax year 2006, groups of affiliated corporations conducting unitary business must file a group return that includes the combined net income of the affiliated group.  For tax years 2008 through 2013, unitary groups file Form CO-411-U, Combined Report for Unitary Group.  Starting in 2014, they file CO-411.

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% $25,000.00
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 $400
$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))

A small farm corporation is a corporation with gross farm receipts of less than $100,000, owned and operated by occupants.  Its business activity is farming.  It is not an investment property, rental property, or any other type of venture.

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