The short version
- Social Security taxed?
- Partly
- Income tax
- Brackets 3.35%–8.75%
- Property tax on a $300,000 home
- ≈ $4,530 / yr ($378 / mo)
- Everyday cost index (U.S. = 100)
- 114
- January / July high
- 27°F / 81°F
- Sales tax (state + local avg)
- 6.43%
Retiring in Vermont
Safe, scenic, and gentle summers, with Social Security exempt under $55,000/$70,000 of income. Watch out: high taxes, high property taxes, and long snowy winters.
How Vermont taxes your retirement income
Social Security: this state taxes a portion of benefits, usually above certain income levels.
Pensions: Pensions taxed as regular income.
401(k) and IRA withdrawals: 401(k)/IRA withdrawals taxed as regular income.
The setup: Brackets 3.35%–8.75%.
Property tax & senior breaks
The average effective property tax rate is about 1.51% — roughly $4,530 a year ($378 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Income-sensitive homestead credit — many lower-income owners pay based on income, not value.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 14% above the U.S. average. The combined state and average local sales tax is 6.43%.
Weather
January days top out around 27°F and July days around 81°F, with roughly 159 sunny days a year. Watch out for: Heavy snow and river flooding.
Healthcare
UVM Medical Center anchors care; very rural elsewhere.
Estate & inheritance taxes
Vermont has an estate tax. Estate tax above a $5 million exemption