Cost of Living in Vermont
Things cost about the same here as the national average.
What Things Cost in Vermont
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Vermont is small, beautiful, and not cheap. The cost of living runs about 12% above the national average, with high utility costs (heating in Vermont is expensive) and property taxes among the highest in the nation. Burlington, the largest city with roughly 45,000 people, is a college town (UVM) with a picturesque waterfront on Lake Champlain. Vermont made headlines by offering remote workers $10,000 to relocate, betting that the lifestyle would convince them to stay. The state's appeal is deeply lifestyle-based: local food, craft beer, covered bridges, fall foliage, and skiing at Stowe and Killington.
Vermont at a Glance
Taxes in Vermont
Vermont's state income tax tops out at Up to 8.75%. The combined sales tax averages 6%. Property taxes run about 1.73% of home value, which on a $320,000 median home means roughly $5,536/year.
Explore Vermont
FAQ About Vermont
Yes. Vermont is about 12% above the national average for cost of living, with above-average costs in nearly every category. Heating costs are a major factor, running $2,000 to $4,000 per winter season. Property taxes average about 1.83%. Housing in Burlington has risen sharply, with median prices exceeding $400,000. Rural Vermont is more affordable but comes with limited services and longer drives for healthcare and shopping.
Vermont has offered relocation incentives for remote workers, typically around $10,000, with the specific terms varying by program year. The program requires you to work remotely for an out-of-state employer while becoming a Vermont resident. It is designed to attract younger workers to offset the state's aging population. The incentive helps offset moving costs but does not change the fundamentals of Vermont's high cost of living and tax burden.
Vermont has a graduated income tax with rates from 3.35% to 8.75%. The top rate applies to income above $229,500 for single filers. Combined with property taxes averaging 1.83% and a 6% sales tax, Vermont's overall tax burden is among the highest in the nation. The state funds robust public services and education but the cost is felt directly by residents.