Cost of Living in Vermont — Housing, Taxes & Everyday Expenses
Rural beauty, high taxes, remote work destination
Data: 2026-Q2 · BLS · HUD · KFFOverview
Vermont has high income taxes and above-average costs but offers exceptional natural beauty and quality of life. Burlington is the major urban center.
Housing costs
Median 1BR rent in Burlington is approximately $1,500-$1,700. Vermont has a housing shortage that has driven up costs.
Tax reality
Vermont has a top income tax rate of 8.75%.
Everyday expenses
At a cost of living index of 113, Vermont is about 13% more expensive than the national average of 100. Vermont's high income tax and above-average costs compress purchasing power relative to its modest income levels.
Salary reality in Vermont
Cost of Living in Vermont — FAQ
What is Vermont's income tax rate?
Vermont has a top income tax rate of 8.75%.
Is Vermont affordable?
Vermont has a cost of living index of 113, about 13% above the national average.