Vermont taxes — property, income, sales, retirement

Home·Tax overview·Vermont

Property tax, income tax, sales tax, and retirement-income treatment in Vermont. Quick read for movers, retirees, and remote workers.

Top marginal 8.75% income tax. High property tax. SS taxed but exemption under AGI threshold.

Effective property tax

1.83%

of home value/yr

Income tax (top rate)

8.75%

Sales tax (state)

6.00%

local adds more

SS taxed by state?

Yes

Property tax

Vermont’s effective property tax rate is approximately 1.83% of assessed home value per year. On a $350,000 home that’s about $6,405/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 8.75%. Brackets vary by income. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 6.00%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Taxed by state. Pensions & 401(k) withdrawals: Partial exclusion / credit available.

Top cities in Vermont

Burlington · pop 44,432 · momentum 55

South Burlington · pop 21,713 · momentum 65

Rutland · pop 15,565 · momentum 75

Winooski · pop 8,370 · momentum 58

Barre · pop 8,304 · momentum 66

Montpelier · pop 7,915 · momentum 64

Compare to other states: All 50 state tax overviews · All Vermont cities · Best Vermont cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.