Vermont tax burden — broken down.
Vermont’s combined tax burden (income + property + sales) lands at 16.65% on our composite — ranking #5 of 51 jurisdictions. The top marginal individual income tax rate is 8.75%.
Vermont burden, broken into 3 components
| Component | Vermont rate | National median |
|---|---|---|
| Top marginal income | 8.75% | ~5.30% |
| Effective property | 1.90% | ~1.07% |
| State sales tax | 6.00% | ~5.50% |
| Combined composite | 16.65% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in Vermont
Vermont taxes most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are taxed by Vermont. Federal taxation of these income sources is unchanged regardless of state.
How Vermont compares
Of all 51 US jurisdictions ranked by combined burden composite, Vermont sits at #5. That puts Vermont in the top 10 highest-burden states — relocation candidates often look at the bottom-10 list (WY, SD, TN, AK, NH). For the live cross-state heat map, see the interactive tax burden map.
Vermont metros — local tax overlay
State rates are uniform across Vermont— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
More Vermont metros coming as we expand city coverage.
Vermont tax — common questions
What is the Vermont top marginal income tax rate in 2025?
Vermont's top marginal individual income tax rate is 8.75% on the highest bracket.
What is the Vermont effective property tax rate?
Vermont's statewide effective property tax rate is 1.90% of home value (annual). On a $400,000 home that's roughly $7,600/yr. Local variation can be ±0.5pp.
Does Vermont tax retirement income or Social Security?
Vermont taxes most retirement income, and taxes Social Security benefits.
Are there any Vermont-specific tax quirks I should know about?
Vermont has an estate tax with $5M exemption (2024) — moderate. Vermont taxes Social Security partially (one of 9 states).
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.