VermontMoney Index August 2026
"Green hills, deep blue taxes."
Vermont — Money Index — Key Facts
- Affordability: 4/10. Vermont sits in the middle of the affordability pack (4/10).
- Business Climate: 5/10. Vermont scores 5/10 on business climate with 7/10 for remote work — moderate runway for entrepreneurs.
- Northeast Money Profile. Vermont sits in the Northeast — and its personality is "The Tax Burden". High marginal rates demand precision: deductions, retirement accounts, and discipline.
- The Short Answer. Vermont pairs America's highest taxes with elite-tier cost of living — wealth is built here on income, not lifestyle arbitrage.
- Banking Access: 6/10. Vermont scores 6/10 on banking access — fine for everyday accounts, worth shopping online HYSA rates to beat local offers.
- Inflation Resilience: 5/10. Vermont scores 5/10 on inflation resilience — middle of the national pack.
- Retirement: 5/10. Vermont is workable for retirees (5/10) but not at the top of the pack.
- Tax Friendliness: 3/10. Vermont has one of the heaviest state income-tax burdens (3/10). Maxing 401(k)/IRA matters more here than almost anywhere.
- Ranked #43 of 50. Vermont ranks #43 of 50 on the PickYourBank US State Money Index — a blend of taxes, affordability, retirement, business climate and remote-work fit.
- Remote Work: 7/10. Vermont scores 7/10 for remote work — solid but not stand-out.
Vermont pairs America's highest taxes with elite-tier cost of living — wealth is built here on income, not lifestyle arbitrage.
On our 1-10 money scorecards, Vermont ranks 3/10 on tax friendliness, 4/10 on cost of living, and 5/10 on retirement — placing it #43 of 50 states overall.
How Vermont scores across the board
Seven dimensions of household finance, scored 1-10. Higher is better in every category.
Money personality: The Tax Burden
High marginal rates demand precision: deductions, retirement accounts, and discipline.
Four Vermont money truths
Vermont has one of the heaviest state income tax burdens (3/10) — maxing tax-advantaged accounts matters more here than almost anywhere.
Cost of living scores 4/10 — Vermont sits in the middle of the affordability pack.
Retirement friendliness 5/10 — workable for retirees but not at the top of the pack.
Business climate 5/10 with 7/10 for remote work — moderate runway for entrepreneurs and laptop-class earners.
"Vermont's high tax, high quality of life shapes how residents save and invest — small policy choices compound into big lifestyle differences."
Money lessons from Vermont
- 1
High-tax states demand maxed-out 401(k)/IRA contributions — every dollar deferred is a 35%+ instant return
- 2
State tax policy is part of your investment strategy — not just where you live
Find your next account
Compare the best savings, checking, business and CD rates — all ranked monthly, all in one place.
Explore financial categories
← Swipe to explore →
Vermont money FAQ
Is Vermont a good state for keeping your money?+
Vermont scores 34 on our composite money index, with a the tax burden profile. Vermont pairs America's highest taxes with elite-tier cost of living — wealth is built here on income, not lifestyle arbitrage.
What is the state income tax in Vermont?+
Vermont has one of the heaviest state income tax burdens in the country. On our 1-10 tax-friendliness scale (10 = no income tax), Vermont scores 3.
Is Vermont good for retirement?+
Vermont scores 5/10 on retirement friendliness, factoring in tax treatment of Social Security and pension income, healthcare costs, and overall affordability for fixed-income households.
Is Vermont good for business owners and remote workers?+
Vermont scores 5/10 on business climate and 7/10 on remote-work suitability — covering tax incentives, talent pools, infrastructure and cost of doing business.
How affordable is Vermont?+
Vermont scores 4/10 on cost of living (10 = cheapest). Combined with 5/10 inflation resilience, that shapes how far paychecks stretch here.
What money personality fits Vermont?+
The Tax Burden — High marginal rates demand precision: deductions, retirement accounts, and discipline.
What's surprising about money in Vermont?+
Vermont's high tax, high quality of life shapes how residents save and invest — small policy choices compound into big lifestyle differences.
