Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Vermont tax professional before filing.
Vermont · USA · Short-term rental taxes
Short-Term Rental Taxes in Vermont
Short term rental taxes in Vermont: 9% rooms tax plus the 3% short-term rental surcharge since August 2024, a 1% local option tax in many towns, and Vermont income tax of 3.35%–8.75% on net rent.
The 30-Second Answer
- Short term rental taxes in Vermont stack three layers on the rent: the 9% Meals and Rooms Tax, the 3% short-term rental surcharge in force since August 1, 2024, and a 1% local option tax in towns that adopted one — 12% to 13% in most places.
- The rooms tax applies once you rent a place for 15 days or more in a calendar year — and then the first 14 days are taxable too. A guest staying past 30 consecutive days becomes a permanent resident, and the tax stops from day 31.
- Airbnb, Vrbo and other platforms must register with the Vermont Department of Taxes and collect all three layers. If you rent only through platforms you do not need your own account; any direct booking means registering and filing Form MRT-441 through myVTax, by the 25th of the following month if you file monthly.
- Net rent is taxed by Vermont at 3.35% to 8.75% on your personal return. Nonresident owners file Form IN-111 with Schedule IN-113 when their Vermont income passes $100 net or $1,000 gross.
Deductions
What Vermont STR Hosts Can Deduct
Ordinary and necessary rental expenses reduce your federal income — and, because Vermont starts from federal figures, your Vermont income tax too.
The 9% rooms tax, 3% surcharge and local option tax you collect are not your income or your expense — keep them off Schedule E. If you use the property yourself, allocate expenses between rental and personal days under IRC §280A.
Filing Calendar
Key Dates & Filing Calendar
Hosts with direct bookings file on the schedule the Department assigns; income tax follows the April calendar.
Watch the 14-day line: rent for 15 days or more in a calendar year and the rooms tax applies to every rental day, including the first 14.
Vermont Department of Taxes — Meals and Rooms Tax; FS-1021; Nonresident filing
Income Tax Treatment
Schedule E or Schedule C for a Vermont STR?
Vermont starts from your federal numbers, so the Schedule E or Schedule C choice carries onto Form IN-111.
Passive rental — Schedule E
The usual route for ski condos and farmhouse rentals
- Report rents and expenses on Schedule E; the net flows onto Form IN-111.
- No self-employment tax on net rental income.
- Depreciate the building over 27.5 years; losses are generally passive, with the $25,000 allowance phasing out between $100,000 and $150,000 of AGI.
- Keep the 9% + 3% + local taxes out of gross rents — they belong to the state and town.
No income ceiling; passive loss rules apply
Active business — Schedule C
For inn-style operations
- Applies when the average stay is 7 days or less and you provide substantial services such as daily housekeeping or breakfast.
- Net profit carries self-employment tax (15.3% up to the 2026 wage base of $184,500).
- The federal QBI deduction (Section 199A) may apply.
- A property licensed as a lodging establishment does not charge the 3% surcharge, but still charges the 9% rooms tax.
No income ceiling; SE tax on profit up to $184,500
Depreciation
Depreciation for Vermont STR Properties
Depreciation is claimed on the federal return and carries into Vermont income through federal figures.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential rental building | 27.5 years (straight-line) | Land is not depreciable; split the purchase price between land and structure. |
| Furniture, appliances & hot tubs | 5 years (MACRS) | Federal bonus depreciation is a permanent 100% for property acquired after January 19, 2025 — ask your preparer about any Vermont adjustments. |
| Driveways, fencing & landscaping | 15 years (MACRS) | Land improvements outside the building. |
| Roof, furnace or addition | 27.5 years | Improvements to the building follow the building's recovery period. |
A cost segregation study can move components into 5- or 15-year classes. Check with a preparer before relying on accelerated write-offs.
On sale, depreciation claimed is recaptured and taxed federally at up to 25% (unrecaptured Section 1250 gain); the gain also flows into your Vermont return.
Rooms Tax & Surcharge
Vermont's Lodging Taxes: 9% + 3% + Local
Every vacation rental booking in Vermont carries the state rooms tax and the short-term rental surcharge, plus a 1% local option tax in participating towns.
The 3% surcharge (Act 183 of 2024) applies to furnished homes, condos and rooms rented to the public for fewer than 30 consecutive days and for more than 14 days a year. Licensed hotels and lodging establishments do not charge it. Cleaning charges and forfeited deposits are part of the taxable rent.
12% statewide; 13% in local option towns
Vermont Department of Taxes — Short-Term Rentals; FS-1021 Rooms Tax (rev. April 2025); Local Option Tax
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking | Airbnb collects the 9% rooms tax, 3% surcharge and any 1% local option tax on the listing price, cleaning and guest fees | Keep the platform's tax report; no Vermont account needed if every booking runs through platforms |
| Vrbo or Booking.com booking | Platforms must register with the Department and collect all three layers | Check the tax line on each reservation before assuming it is covered |
| Direct booking | You register, charge 9% + 3% (+1% local) and file MRT-441 in myVTax | The surcharge must be paid electronically; hold the tax apart from rent |
Burlington and Rutland City run their own local lodging taxes instead of the state-administered 1% — Airbnb lists Burlington's city tax at 2%–9% depending on listing type. Towns adopt new local option taxes over time (Peru from July 1, 2026), so check the Department of Taxes list.
Platforms
Airbnb Tax in Vermont: What Platforms Collect
Vermont requires online platforms to register and collect the rooms tax, surcharge and local option tax — income reporting and direct bookings remain your job.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Form 1099-K when 2026 payouts exceed $20,000 and 200 transactions | Yes — 9% rooms tax, 3% surcharge, 1% local option tax and Burlington's city tax | Earnings summary in the host dashboard; tax forms by February 1, 2027 |
| Vrbo / Booking.com | Form 1099-K above the same federal thresholds | Required to register and collect in Vermont — confirm the tax line on your listing | Annual payout summary in the owner or partner dashboard |
| Direct bookings | No platform reporting | No — register with the Department of Taxes and file MRT-441 | Your own booking ledger |
Listing on Several Platforms?
Each platform collects only on its own bookings. One direct booking is enough to need your own meals and rooms account, and extras you bill yourself — pet or late-checkout fees — are taxable rent. The 1099-K test runs per platform, so total your payouts yourself.
US Reporting: Form 1099-K, Not DAC7
DAC7 is an EU rule and does not apply in Vermont. US platforms report on Form 1099-K once payouts exceed $20,000 and 200 transactions in a year; Form 1099-MISC/NEC uses a $2,000 threshold for payments after December 31, 2025. All rental income is taxable whether or not a form is issued.
Airbnb Help Center — Vermont (airbnb.com/help/article/2334); Vermont Department of Taxes — Short-Term Rentals
Illustrative P&L — Ski-Town Condo
Example for a Vermont ski condo grossing $45,000 a year (rooms tax, surcharge and local option tax excluded). For illustration only — not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and How Long
The Department of Taxes can review your MRT-441 returns and the IRS your income — the same records answer both.
| Keep | How long | Why |
|---|---|---|
| Booking log (dates, nights, rent, platform) | At least 3 years (recommended longer) | Proves the 14-day and 30-day tests and which stays a platform already taxed |
| MRT-441 returns and myVTax payment confirmations | At least 3 years (recommended) | Shows rooms tax, surcharge and local option tax were remitted |
| Platform tax reports and 1099-K forms | At least 3 years | Reconciles platform-collected tax and payouts with your returns |
| Expense receipts and invoices | At least 3 years from filing | IRS standard audit window; longer if income is substantially understated |
| Purchase documents and depreciation schedules | Until 3 years after you sell | Needed for basis and depreciation recapture |
Record cleaning fees and forfeited deposits as rent — Vermont taxes both under the rooms tax.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
Checked against Vermont Department of Taxes pages in September 2026. Vermont has not yet published 2026 income-tax brackets; the rates shown come from the 2025 schedules. Local option towns change — check the current list.
- Vermont Department of Taxes — Short-Term Rentals (surcharge, platforms, registration) — https://tax.vermont.gov/business/industry/short-term-rentals
- Vermont Department of Taxes — FS-1021 Rooms Tax (rev. April 2025) — https://tax.vermont.gov/sites/tax/files/documents/FS-1021.pdf
- Vermont Department of Taxes — Meals and Rooms Tax (due dates, frequency) — https://tax.vermont.gov/business/meals-and-rooms-tax
- Vermont Department of Taxes — Local Option Tax municipalities — https://tax.vermont.gov/business/local-option-tax
- Airbnb Help Center — Vermont occupancy taxes collected — https://www.airbnb.com/help/article/2334
- Vermont Department of Taxes — 2025 Tax Rate Schedules — https://tax.vermont.gov/sites/tax/files/documents/TaxRateSched-2025.pdf
- Vermont Department of Taxes — Nonresident with Vermont income — https://tax.vermont.gov/individuals/who-should-file/nonresident
- IRS — Publication 527, Residential Rental Property — https://www.irs.gov/publications/p527
Questions
Frequently Asked Questions — Vermont STR Taxes
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