Vermont: The Worst State for Taxes on Retirees

The Green Mountain State's tax bite will leave many retirees seeing red.

High taxes can be a killer for people living on fixed incomes. That’s why retirees should carefully weigh a state’s tax picture before committing to live there.

We analyzed the tax policies of all 50 states and the District of Columbia to identify the worst states for retirement when it comes to taxes. We looked at state sales taxes and income taxes, including taxes on Social Security, as well as property taxes, estate taxes and inheritance taxes. Our conclusion: The Green Mountain State will leave many retirees seeing red.

Sure, it’s pretty, but Vermont levies a 6% sales tax, property taxes skew high, and most forms of retirement income are taxed. The top income tax rate is a steep 8.95%. Vermont even started taxing soft drinks in 2015. And when you die, your estate can face a tax bite of as much as 16%.

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Consider yourself warned.

See 14 more of the worst states for taxes on retirees.

David Muhlbaum
Former Senior Online Editor

In his former role as Senior Online Editor, David edited and wrote a wide range of content for With more than 20 years of experience with Kiplinger, David worked on numerous Kiplinger publications, including The Kiplinger Letter and Kiplinger’s Personal Finance magazine. He co-hosted  Your Money's Worth, Kiplinger's podcast and helped develop the Economic Forecasts feature.