Retirement Tax Breakdown for Vermont Residents

Complete Vermont retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #43 of 51.

State Income Tax
8.75% top rate

4 bracket(s)

Capital Gains Rate
8.75%

Treated as ordinary income

Property Tax Rate
1.71%

#5 (Very Low)

Sales Tax Rate
6.3%

State 6% + local avg 6.3%

Less Tax-Friendly State

Vermont exempts Social Security for lower-income retirees but taxes pensions and retirement accounts at high rates. Property taxes are among the highest in the nation.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Taxable

Retirement Exemption

None

Tax Comparison Summary

State income tax8.75% top
Capital gains8.75%
Property tax1.71% effective
Sales tax6.3% combined
Overall retiree rank#43 of 51

Vermont Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
3.35%$0$47,400
6.6%$47,400$114,950
7.6%$114,950$249,150
8.75%$249,150No limit

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