Relocating to Vermont: state taxes and costs

Relocating to Vermont: state taxes, residency rules and cost of living

Official figures for Vermont: state income tax, capital gains, estate and inheritance tax, sales tax and the residency test, with rents, home values, price levels and safety from federal statistics.

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8.75%Top state income tax rate

6%State sales tax rate

$1,338Median gross rent per month

98.0Price level (US = 100)

The short answer

What does it cost to live in Vermont?

Vermont state income tax: Graduated, top rate 8.75%. Median gross rent is $1,338 per month and the price level is 98.0 against a US average of 100. Sales, estate and inheritance taxes and the residency rule are set out below with their sources.

Evidence: Official source · Machine-readable data · As of 30 October 2026

State tax rules

State taxes in Vermont

Each rule below is read from the Vermont revenue department or statute and checked against an independent table. Local taxes are not included.

State income tax: Graduated, top rate 8.75%
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Capital gains: Vermont taxes capital gains at its ordinary graduated rates after an exclusion of $5,000 or, for qualifying assets held over three years, 40% of the gain up to $350,000.
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Estate tax: Vermont levies an estate tax on gross estates above $5,000,000 (threshold raised effective 18 June 2026).
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Who is a resident: Vermont treats as a resident anyone domiciled in Vermont, or anyone who maintains a permanent home there and is present more than 183 days of the tax year.
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Estate tax exemption: $5,000,000
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Sales tax: Statewide rate 6%; local rates may be added
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State level only. Local income taxes (for example city or county taxes) and local sales taxes are added on top where they exist.

Cost of living

Housing, prices and safety in Vermont

Housing, prices and safety in Vermont
Metric	Value
Median gross rent per month	$1,338
Median home value	$359,800
Property tax as a share of home value	1.51%
Median real estate taxes paid per year	$5,418
Median household income	$86,018
Price level (US = 100)	98.0
Housing price level (US = 100)	86.5
Residential electricity price	23.93 cents per kWh

Rent, home value, property tax and income: Census Bureau, American Community Survey 2025. Price levels: BEA Regional Price Parities 2024. Electricity: EIA, year to date through August 2026.

Back to the state overview · Methodology and sources

Questions

Living in Vermont: common questions

Does Vermont have a state income tax?

Vermont state income tax: Graduated, top rate 8.75%. Federal income tax applies in addition, as in every state.

What is the sales tax in Vermont?

The statewide sales tax rate in Vermont is 6%. Counties and cities may add local rates.

How much does housing cost in Vermont?

In Vermont the median gross rent is $1,338 per month and the median value of an owner-occupied home is $359,800, according to the Census Bureau American Community Survey 2025.

Who counts as a resident of Vermont for income tax?

Vermont treats as a resident anyone domiciled in Vermont, or anyone who maintains a permanent home there and is present more than 183 days of the tax year.

Information, not tax or legal advice. Rates are statutory state rates for the stated year; local income, sales and property taxes, deductions and federal tax are not included. Statistics are the latest official releases for the year shown. Confirm your own position with the state revenue department or a tax adviser.

What does it cost to live in Vermont?

State taxes in Vermont

Housing, prices and safety in Vermont

Living in Vermont: common questions

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