Retire by state
Retiring in Vermont
Vermont trades long, snowy winters and a progressive income tax for quiet mountains, fall color, and a recent break that exempts Social Security for many retirees.
A fit if
People who love four real seasons, small-town New England, and easy access to hiking, lakes, and ski country.
Hard look if
Retirees on a tight budget, since Vermont has a higher cost of living, long heating seasons, and taxes most retirement income above modest thresholds.
Figures verified May 31, 2026.
Cost of living
98
BEA index, U.S. = 100
State income tax
~5.0%
Blended planning rate
Social Security
Taxed
2026 state treatment
How the plan models Vermont
The state lines the calculator actually changes.
These are the assumptions the planner applies for Vermont. They are blended, middle-bracket planning figures, not a tax return. Exemptions, county rules, and your own income mix can move the real number.
Cost of living
98
BEA regional price parities put Vermont about 2.0% below the U.S. average cost level. The U.S. average is 100.
BEA Regional Price ParitiesState income tax
~5.0%
Vermont can tax some Social Security income and uses a 5% blended planning rate for taxable retirement-income context. IRA and 401(k) withdrawals can still need a state-tax line in Vermont, with exemptions and local rules checked against current state guidance.
Tax FoundationSocial Security
Taxed
Vermont is one of the states where Social Security can still need a state-tax check.
AARP / IRS Pub. 915Property tax
1.9%
Property tax is local, but the Vermont state-level planning rate used here is 1.9% of home value. On a $350,000 home, that is about $6,700 a year before county detail.
Tax FoundationSales tax
6.4%
Tax Foundation puts Vermont's 2026 average combined state and local sales tax near 6.4%, ranked 32 among states in that table.
Tax FoundationVehicle costs
Registration line
Vehicle costs still belong in the budget, but the vehicle-tax source used here does not flag Vermont as a state where value-based vehicle property tax is the main planning issue.
FreeTaxUSA vehicle-tax guideLong-term care in Vermont
The care cliff, in Vermont dollars.
CareScout and Genworth 2025 median costs, compared with the national median. Long-term care is a separate planning layer from ordinary Medicare costs.
Assisted living
$8,597/mo
About $103,167 a year, 39% higher than the national median.
Nursing home (semi-private)
$14,113/mo
About $169,360 a year, 47% higher than the national median.
Home caregiver
$8,580/mo
About $102,960 a year, 29% higher than the national median.
Things to do in Vermont
What daily life can look like.
State parks for hiking, swimming, and boating
Vermont's state parks offer camping, hiking, swimming, boating, fishing, and winter activities across the state. Many parks run events and programs through the warm-weather season.
Vermont State ParksAccessible outdoor options
The state's Forests, Parks and Recreation department lists accessible activities such as fishing, geocaching, camping, and adaptive recreation. That makes it easier to plan trips around different mobility needs.
Vermont Department of Forests, Parks and RecreationTrails and rail trails through forest country
Hiking trails range from steep mountain climbs to gentle paths through forests, and cycling and rail trails give flatter options. Fall foliage season draws people to the same routes for the color.
Vermont TourismWhat to know about Vermont
The trade-offs worth weighing.
Social Security tax depends on income
Vermont exempts Social Security for individuals below an income threshold, and a newer law widened that relief. Above the cutoff, part or all of benefits can be taxed, so where you land matters.
Vermont Department of TaxesPensions and account withdrawals are taxed
Vermont uses a progressive income tax and generally taxes pensions and retirement account withdrawals. Reviewing how your specific income sources are treated can prevent surprises.
Vermont Department of TaxesLong winters and snow loads
Winters are long, cold, and snowy across most of Vermont, which means real heating costs and ongoing snow removal. Rural roads and driveways can stay challenging for months.
Vermont TourismWeighing two states?
Put Vermont next to another state.
Compare cost of living, taxes, Social Security treatment, property and sales tax, and long-term-care costs side by side.
Common questions
Retiring in Vermont, answered.
Does Vermont tax retirement income?
Vermont is one of the states where Social Security can still need a state-tax check. IRA and 401(k) withdrawals can still need a state-tax line in Vermont, with exemptions and local rules checked against current state guidance. Vermont can tax some Social Security income and uses a 5% blended planning rate for taxable retirement-income context.
AARP: how states tax retirement incomeIs Vermont cheaper or more expensive than average?
BEA regional price parities put Vermont about 2.0% below the U.S. average cost level. That price level is the first reason a national retirement number needs a Vermont translation.
BEA Regional Price ParitiesWhat does long-term care cost in Vermont?
In the CareScout and Genworth 2025 medians, Vermont assisted living runs about $103,167 a year (39% higher than the national median) and a semi-private nursing-home room about $169,360 a year (47% higher than the national median).
CareScout / Genworth Cost of CareDoes Vermont tax Social Security benefits?
Vermont does not tax Social Security for filers under set income thresholds, and a recent law expanded that exemption. Above those income levels, some or all of your benefits can be taxed.
Vermont Department of TaxesSources
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