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.
4 bracket(s)
Treated as ordinary income
#5 (Very Low)
State 6% + local avg 6.3%
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.
Not taxed
Taxable
None
| Rate | From | To |
|---|---|---|
| 3.35% | $0 | $47,400 |
| 6.6% | $47,400 | $114,950 |
| 7.6% | $114,950 | $249,150 |
| 8.75% | $249,150 | No limit |
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