Vermont is a beautiful, rural state with above-average taxes, a persistent housing shortage, and a quality of life that attracts people willing to pay a premium for small-town New England living. The financial picture is complicated: incomes are modest (especially outside Burlington), but the cost of living is above average for a rural state due to expensive housing, high heating costs, and above-average income and property taxes. Vermont appeals most to remote workers who can earn urban salaries while living in a state with more cows than people, and to retirees drawn by the state’s strong community culture and outdoor recreation.
Vermont at a Glance
| Metric | Value | National Rank |
|---|---|---|
| Population (2024) | 650,000 | 49th (2nd smallest) |
| Median household income | $74,014 | Above average |
| Median home price | $380,000 | Above average |
| Cost of living index | 112 | Above average |
| State income tax | 3.35-8.75% | Very high |
| Sales tax | 6% (+ 1% local in some places) | Average |
| Property tax (effective rate) | 1.83% | High |
Income and Housing
| City/Area | Median Income | Median Home Price | Median Rent (2BR) |
|---|---|---|---|
| Burlington | $63,000 | $460,000 | $1,800 |
| South Burlington | $82,000 | $470,000 | $1,750 |
| Montpelier | $60,000 | $350,000 | $1,500 |
| Rutland | $48,000 | $240,000 | $1,100 |
| Stowe (ski resort) | $75,000 | $700,000+ | $2,000+ |
| Brattleboro | $48,000 | $280,000 | $1,200 |
Vermont has a severe housing shortage — vacancy rates are among the lowest in the nation.
Vermont Pros and Cons
| Financial Pros | Financial Cons |
|---|---|
| Above-average income for size | 8.75% top income tax rate |
| Excellent schools (top 5 nationally) | High property taxes (1.83%) |
| Remote-work incentive program ($7,500) | Above-average COL (112) |
| Clean environment, outdoor recreation | Cold winters, very high heating costs |
| Strong community and safety | Very limited job market |
Related: Cost of Living by State | State Income Tax Rates | Property Tax by State
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