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Live in Vermont, Work Remotely for a Wisconsin Employer: Who Taxes You?

Home state onlyVermont withholds

Answer

Vermont gets all of it. Because Wisconsin does not tax wage income, no Wisconsin withholding exists and no Wisconsin return is required — but Vermont taxes residents on worldwide income, so every dollar earned in Wisconsin still belongs on your Vermont resident return.

Last verified

Crossing into a state with no income tax does not lower your tax bill, because your home state is not taxing you on where you work — it is taxing you on where you live. Vermont reaches all of a resident's income, and Wisconsin adds nothing on top.

What you file

  1. 1Resident return · Vermont

    File a Vermont resident return reporting all of your income.

The two states, side by side

 VermontWisconsin
Taxes wagesYes — graduatedYes — graduated
Reciprocity partnersNone4 (Form W-220)
Convenience ruleNoNo
Nonresident returnForm IN-111 with Schedule IN-113Form 1NPR
Credit for other-state taxSchedule IN-117Schedule OS
Nonresident safe harbourNone publishedDollar floor published
Local income taxNoNo
Revenue departmentVermont Department of TaxesWisconsin Department of Revenue
Last verified

The other direction

Reversing the commute does not always reverse the answer. Living in Wisconsin and working in Vermont gives:Home state only.

Wisconsin to Vermont →

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.

Other Vermont pairs

Questions people actually ask

I live in Vermont and work remotely for a Wisconsin employer. Which state do I pay?

Vermont gets all of it. Because Wisconsin does not tax wage income, no Wisconsin withholding exists and no Wisconsin return is required — but Vermont taxes residents on worldwide income, so every dollar earned in Wisconsin still belongs on your Vermont resident return.

Which state should my employer be withholding for?

Vermont. Your employer should withhold Vermont tax rather than Wisconsin tax on these wages. If a Wisconsin line is showing on your pay stub, raise it with payroll now rather than at filing time.

Does my Wisconsin employer's location alone create a Wisconsin tax obligation?

No. Wisconsin sources wages to the place where the work is physically performed, and it does not apply a convenience-of-the-employer rule that would override that. Days you actually spend working inside Wisconsin are a different matter — those are Wisconsin-source income and can require a nonresident return.

How current is this?

The Vermont and Wisconsin rules on this page were last checked against Vermont Department of Taxes and Wisconsin Department of Revenue 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.