Vermont

Moving from Maine to Vermont would RAISE your total state and local tax burden from 12.4% of income to 13.6% of income — an increase of +1.2 pts. On a $100K household budget, that is roughly $1200 more per year in combined state and local taxes.

Vermont top marginal income tax rate is 8.75%, versus 7.15% in Maine. Compare across your expected income bracket — top rates kick in at different thresholds in each state.

Vermont state sales tax is 6.00%. With average local add-ons, the combined rate is 6.36%. This applies to most retail purchases but rules on groceries, prescriptions, and services vary.

Vermont median effective property tax rate is 1.83% of home value. On a $400,000 home, that is roughly $7,320/year. Property tax typically funds schools, municipalities, and county services — rates vary sharply within a state by school district.

Vermont imposes a state estate tax with a threshold of $5.0M. Estates above this threshold pay state-level tax in addition to federal. No state inheritance tax applies.

In Vermont: Social Security is partially taxed. Pensions and 401(k)/IRA withdrawals are partially taxed.

Vermont capital gains treatment: 40% exclusion on farm/small business gains; otherwise taxed as regular income up to 8.75%. Compare to federal long-term capital gains rates (0%, 15%, or 20%) — some states offer preferential treatment for long-term holdings, while others tax capital gains as ordinary income.

Vermont gas tax is 33.8¢/gal — 3.8¢/gal higher than Maine's 30.0¢/gal. For a 15,000 mile/year driver getting 25 mpg, each 1¢/gal of gas tax = about $6/year.

Vermont residency rules: Domicile + 183-day rule + permanent abode. Statutory resident test. To establish residency for tax purposes, typical steps include: update driver's license and vehicle registration, register to vote, file a homestead declaration, close home-state bank accounts where possible, and spend clearly more than 183 days in your new state. If your former state is aggressive (e.g., CA, NY, NJ, OR), keep documentation of every day spent in each state.

Vermont recent tax law changes: Social Security exemption expanded (full exclusion below $50K single AGI). Brackets adjusted for inflation annually.

For the most current tax information in Vermont, visit the official source at https://tax.vermont.gov/. Tax laws change annually; verify rates and rules before making a permanent move. Consult a CPA for advice specific to your situation.