Vermont’s top state income tax is 8.95 percent, and the state does tax most retirement income, including Social Security benefits. Property taxes are among some of the nation’s highest, though veterans may see some exemptions.
If these financial concerns won’t affect your retirement, the state does offer a number of perks for retirees. Communities like the college town of Burlington and the state capital, Montpelier offer a number of cultural attractions, and outdoor activities are numerous, particularly for those who enjoy winter sports, like skiing or snowshoeing.
Con: High cost of living, taxes on Social Security benefits
Best For: Winter sports enthusiasts
Cost of Living: 17% higher than national average
Median Home Cost: $229,900
Top State Income Tax: 8.95%
Vermont’s Green Mountains are not only scenic, they also offer folks the chance to ski, hike, or fish in streams. Boaters and anglers might also pay a visit to Lake Champlain in Vermont’s northwest, where they’ll find excellent fishing and boating, as well as a number of annual festivals.
Foodies are also drawn to Vermont. Agriculture is a mainstay for many of the state’s residents, and many food producers have created a wealth of locally produced milk and butter, artisanal cheeses and ice cream, and of course, authentic Vermont maple syrup.
Retirees should also be prepared for the weather in Vermont. Though summers are mild and pleasant, winters can be fiercely cold and snowy.