Vermont taxes and cost of living (2026)
Vermont has a graduated income tax from 3.35% to 8.75%. A $100,000 salary is worth about $69,210 a year in national buying power after every tax and Vermont's prices, #29 of 51 (the state average is $70,397). Retiring on $50,000 a year takes about $1.28M, #28 lowest.
- State income tax
- 3.4%–8.75%
- Sales tax (avg. combined)
- 6.43%
- Property tax (effective)
- 1.43%
- Cost of living
- 98.0
- US = 100
- Social Security taxed?
- Partly
- Median home
- $353K
Take-home pay in Vermont
Single filer, 10% of salary to a pre-tax 401(k), standard deduction, renting. All taxes include estimated sales tax.
| Salary | Federal | FICA | State + local | All-in tax rate | Take-home | In US dollars |
|---|---|---|---|---|---|---|
| $50,000 | $3,220 | $3,825 | $1,125 | 17.3% | $36,830 | $37,597 |
| $75,000 | $6,020 | $5,738 | $2,071 | 19.4% | $53,672 | $54,791 |
| $100,000 | $10,970 | $7,650 | $3,583 | 23.2% | $67,797 | $69,210 |
| $150,000 | $21,134 | $11,475 | $6,631 | 27.2% | $95,760 | $97,756 |
| $250,000 | $43,304 | $15,514 | $13,581 | 30.0% | $152,601 | $155,782 |
What it takes to retire in Vermont
Married couple, age 60, withdrawals 60% from 401(k)/IRA, 20% Roth, 20% brokerage, no Social Security yet, renting. Spending at US-average prices.
| Spending | At VT prices | Income taxes | All taxes | FI number |
|---|---|---|---|---|
| $40,000 | $39,183 | $0 | $806 | $979.6K |
| $60,000 | $58,775 | $701 | $1,911 | $1.49M |
| $80,000 | $78,366 | $2,485 | $4,098 | $2.02M |
| $120,000 | $117,550 | $6,432 | $8,851 | $3.10M |
Vermont tax rules at a glance
- Income tax: Vermont has a graduated income tax from 3.35% to 8.75%. Brackets and standard deduction are the official TY2025 schedules; the TY2026 rate schedule is not yet published. Personal exemption is the 2026 amount ($5,400 per person, the GB-1210-2026 withholding allowance; 2025 was $5,300). The 2026 withholding tables imply about +2.6% indexing (single brackets about $50,750/$122,850/$256,300; MFJ about $84,700/$204,750/$312,050), but that is not an official rate schedule. Starts from federal AGI. Taxpayers with federal AGI over $150,000 pay the greater of the schedule tax or 3% of AGI (minimum tax). Additional $1,250 standard deduction per 65+/blind box (born before 1/2/1961 for 2025).
- Payroll: VT Child Care Contribution (employee share): 0.11% of wages.
- Local income tax: No local income taxes.
- Social Security: Taxed at least in part. Partially. TY2025: taxable SS is fully exempt if AGI is under $55,000 (single/HOH/MFS) or $70,000 (MFJ), partially exempt up to $65,000/$80,000, and fully taxable above. 2026 thresholds not confirmed; no 2026 change found.
- Retirement income: Instead of the SS exemption, a taxpayer may exclude up to $10,000 of CSRS, state or local government pension income from non-Social-Security-covered employment. Same AGI limits as the SS exemption. Act 71 (2025): military retirement and survivor benefits are fully exempt at AGI up to $125,000, phasing out to $175,000. There is no general IRA/401(k) exclusion.
- Capital gains: Gains on publicly traded stocks and bonds get only the flat $5,000 exclusion (the 40% exclusion covers other assets).
- Sales tax: 6.00% state rate, 6.43% average with local taxes; groceries exempt.
Compare Vermont with
Frequently asked questions
Does Vermont have a state income tax?
Vermont has a graduated income tax from 3.35% to 8.75%. Brackets and standard deduction are the official TY2025 schedules; the TY2026 rate schedule is not yet published. Personal exemption is the 2026 amount ($5,400 per person, the GB-1210-2026 withholding allowance; 2025 was $5,300). The 2026 withholding tables imply about +2.6% indexing (single brackets about $50,750/$122,850/$256,300; MFJ about $84,700/$204,750/$312,050), but that is not an official rate schedule. Starts from federal AGI. Taxpayers with federal AGI over $150,000 pay the greater of the schedule tax or 3% of AGI (minimum tax). Additional $1,250 standard deduction per 65+/blind box (born before 1/2/1961 for 2025).
How much is $100,000 after taxes in Vermont?
A single filer earning $100,000 who puts $10,000 in a 401(k) takes home about $67,797 after federal, state and local income taxes and payroll taxes, an all-in effective rate of 23.2% including estimated sales tax.
Does Vermont tax Social Security?
Yes, at least partly. Partially. TY2025: taxable SS is fully exempt if AGI is under $55,000 (single/HOH/MFS) or $70,000 (MFJ), partially exempt up to $65,000/$80,000, and fully taxable above. 2026 thresholds not confirmed; no 2026 change found.
How much do you need to retire in Vermont?
To spend $50,000 a year (at US-average prices) with withdrawals mostly from a 401(k)/IRA, you'd need about $1.28M in Vermont using the 4% rule, after its cost of living and taxes.
Is Vermont expensive to live in?
Vermont's cost of living index is 98.0, where the US average is 100 (BEA Regional Price Parities, 2024). The median home is worth about $352,800 and median rent is $1,319 a month.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).