1099 Contractor in Oregon with a Vermont Client: Where Do You File?
Answer
Oregon taxes all of it; Vermont taxes only what you earn on its soil. Nothing is withheld from a 1099, so you pay Oregon quarterly. A Vermont client alone creates no Vermont filing obligation — performing services inside Vermont does, and Oregon then credits that tax.
Last verified
Reciprocity agreements are the first thing contractors ask about and the first thing that does not apply to them. Every agreement in the country is a wage-withholding arrangement, and a 1099 has no withholding to switch off.
Vermont publishes no de minimis day count or dollar floor for nonresidents. Any Vermont-source wage income above the state's general filing threshold requires a nonresident return, and that threshold is reset each year — check the current figure on the Vermont Department of Taxes nonresident instructions before filing.
What you file
- 1Quarterly estimated payments · Oregon
Make quarterly estimated payments to Oregon Department of Revenue on your full self-employment income — nothing is withheld from a 1099.
- 2Nonresident return · VermontForm IN-111 with Schedule IN-113
File a Vermont nonresident return only if you performed services inside Vermont. Vermont publishes no de minimis day count or dollar floor for nonresidents. Any Vermont-source wage income above the state's general filing threshold requires a nonresident return, and that threshold is reset each year — check the current figure on the Vermont Department of Taxes nonresident instructions before filing.
- 3Resident return · OregonSchedule OR-ASC-NP
File the Oregon resident return last and claim the credit for any tax paid to Vermont.
The two states, side by side
| Oregon | Vermont | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form OR-40-N | Form IN-111 with Schedule IN-113 |
| Credit for other-state tax | Schedule OR-ASC-NP | Schedule IN-117 |
| Nonresident safe harbour | None published | None published |
| Local income tax | Yes | No |
| Revenue department | Oregon Department of Revenue | Vermont Department of Taxes |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Vermont and working in Oregon gives:Home state, plus the client state if you work there.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: Oregon → VermontBoth states — credit offsets the double tax
- Remote worker: Oregon → VermontHome state only
- Moved mid-year: Oregon → VermontTwo part-year returns
Other Oregon pairs
Questions people actually ask
I live in Oregon and my client is in Vermont. Do I have to file a Vermont tax return?
Oregon taxes all of it; Vermont taxes only what you earn on its soil. Nothing is withheld from a 1099, so you pay Oregon quarterly. A Vermont client alone creates no Vermont filing obligation — performing services inside Vermont does, and Oregon then credits that tax.
Do reciprocity agreements help a 1099 contractor?
No. Every state reciprocity agreement in the country is an arrangement about wage withholding between two revenue departments, and a 1099 has no withholding to switch off. Whether Oregon and Vermont hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The Oregon and Vermont rules on this page were last checked against Oregon Department of Revenue and Vermont Department of Taxes on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Oregon Department of Revenue — individual income taxaccessed 2026-08-07
- Vermont Department of Taxes — individual income taxaccessed 2026-08-07