Best States to Move to From Vermont
Vermont has a top income tax rate of 8.75%, making it one of the higher-tax states in the country. If you are considering a move, there are states where you could pay significantly less in income tax — or none at all. Use the ranking tool below to compare all 50 states and see how much you could save based on your actual income and filing status.
Most Tax Savings
AlaskaSave $4,085/yr
Your Tax Burden
$4,0854.08% effective state rate
Federal + FICA
$21,099Same across all states
At your income of $100,000, Vermont charges $4,085 in state income tax (4.08% effective rate).
Best option: Alaska saves you $4,085/year — With no state income tax, your take-home pay in Alaska is higher than most states. However, the cost of living — particularly housing, food, and energy — is significantly above the national average, which can offset the tax savings.
Highest tax: Oregon would cost you $3,002/year more than Vermont.
| # | State | State Tax | Eff. Rate | Total Tax | Take-Home | Annual Savings ▼ | |
|---|---|---|---|---|---|---|---|
| 1 | Alaska | $0 | 0.00% | $21,099 | $78,901 | +$4,085 | |
| 2 | Florida | $0 | 0.00% | $21,099 | $78,901 | +$4,085 | |
| 3 | Nevada | $0 | 0.00% | $21,099 | $78,901 | +$4,085 | |
| 4 | New Hampshire | $0 | 0.00% | $21,099 | $78,901 | +$4,085 | |
| 5 | South Dakota | $0 | 0.00% | $21,099 | $78,901 | +$4,085 | |
| 6 | Tennessee | $0 | 0.00% | $21,099 | $78,901 | +$4,085 | |
| 7 | Texas | $0 | 0.00% | $21,099 | $78,901 | +$4,085 | |
| 8 | Washington | $0 | 0.00% | $21,099 | $78,901 | +$4,085 | |
| 9 | Wyoming | $0 | 0.00% | $21,099 | $78,901 | +$4,085 | |
| 10 | North Dakota | $771 | 0.77% | $21,870 | $78,130 | +$3,314 | |
| 11 | Ohio | $1,601 | 1.60% | $22,700 | $77,301 | +$2,485 | |
| 12 | Arizona | $2,106 | 2.11% | $23,205 | $76,795 | +$1,979 | |
| 13 | Indiana | $2,570 | 2.57% | $23,669 | $76,331 | +$1,515 | |
| 14 | Pennsylvania | $2,586 | 2.59% | $23,685 | $76,315 | +$1,499 | |
| 15 | Louisiana | $2,999 | 3.00% | $24,098 | $75,902 | +$1,086 | |
| 16 | Arkansas | $3,208 | 3.21% | $24,307 | $75,693 | +$877 | |
| 17 | New Jersey | $3,240 | 3.24% | $24,339 | $75,661 | +$845 | |
| 18 | Rhode Island | $3,267 | 3.27% | $24,366 | $75,634 | +$818 | |
| 19 | Kentucky | $3,370 | 3.37% | $24,469 | $75,531 | +$715 | |
| 20 | West Virginia | $3,425 | 3.43% | $24,524 | $75,476 | +$660 | |
| 21 | Mississippi | $3,490 | 3.49% | $24,589 | $75,411 | +$595 | |
| 22 | Michigan | $3,581 | 3.58% | $24,680 | $75,320 | +$504 | |
| 23 | Colorado | $3,707 | 3.71% | $24,806 | $75,194 | +$378 | |
| 24 | North Carolina | $3,791 | 3.79% | $24,890 | $75,110 | +$294 | |
| 25 | Oklahoma | $3,813 | 3.81% | $24,912 | $75,088 | +$272 | |
| 26 | New Mexico | $3,849 | 3.85% | $24,948 | $75,052 | +$236 | |
| 27 | Connecticut | $3,884 | 3.88% | $24,983 | $75,017 | +$201 | |
| 28 | Utah | $3,918 | 3.92% | $25,017 | $74,983 | +$167 | |
| 29 | Missouri | $3,932 | 3.93% | $25,031 | $74,969 | +$153 | |
| 30 | Maryland | $3,949 | 3.95% | $25,048 | $74,952 | +$136 | |
| 31 | Wisconsin | $4,079 | 4.08% | $25,178 | $74,822 | +$6 | |
| 32 | VermontYour state | $4,085 | 4.08% | $25,184 | $74,816 | — | |
| 33 | Illinois | $4,170 | 4.17% | $25,269 | $74,731 | -$85 | |
| 34 | Alabama | $4,173 | 4.17% | $25,272 | $74,729 | -$88 | |
| 35 | Massachusetts | $4,213 | 4.21% | $25,312 | $74,689 | -$128 | |
| 36 | Nebraska | $4,252 | 4.25% | $25,351 | $74,649 | -$167 | |
| 37 | Kansas | $4,345 | 4.34% | $25,444 | $74,556 | -$260 | |
| 38 | California | $4,378 | 4.38% | $25,477 | $74,523 | -$293 | |
| 39 | Georgia | $4,394 | 4.39% | $25,493 | $74,507 | -$309 | |
| 40 | Iowa | $4,503 | 4.50% | $25,602 | $74,398 | -$418 | |
| 41 | Delaware | $4,544 | 4.54% | $25,643 | $74,357 | -$459 | |
| 42 | Virginia | $4,587 | 4.59% | $25,686 | $74,314 | -$502 | |
| 43 | South Carolina | $4,699 | 4.70% | $25,798 | $74,202 | -$614 | |
| 44 | Montana | $4,725 | 4.72% | $25,824 | $74,176 | -$640 | |
| 45 | New York | $4,729 | 4.73% | $25,828 | $74,172 | -$644 | |
| 46 | Idaho | $4,887 | 4.89% | $25,986 | $74,015 | -$802 | |
| 47 | Minnesota | $5,293 | 5.29% | $26,392 | $73,608 | -$1,208 | |
| 48 | Maine | $5,559 | 5.56% | $26,658 | $73,342 | -$1,474 | |
| 49 | District of Columbia | $5,561 | 5.56% | $26,660 | $73,340 | -$1,476 | |
| 50 | Hawaii | $6,204 | 6.20% | $27,303 | $72,697 | -$2,119 | |
| 51 | Oregon | $7,087 | 7.09% | $28,186 | $71,814 | -$3,002 |
About Taxes in Vermont
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
What to Consider When Moving
Tax residency rules: Most states tax you as a resident for the entire year if you live there for more than 183 days. Moving mid-year may require filing part-year returns in both states.
Remote work complication: Some states (notably New York) have a "convenience of the employer" rule — if your employer is in Vermont but you work remotely from another state, Vermont may still tax your income.
Total cost matters: A no-income-tax state saves you the full state tax amount, but higher property taxes (Texas), sales taxes (Tennessee, Washington), or cost of living can erode the savings. Compare total out-of-pocket, not just income tax.
Frequently asked questions
Which state has the lowest taxes if I move from Vermont?
States with no income tax — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming — will always offer the biggest income tax savings compared to Vermont. Use the calculator above with your actual income to see exact dollar savings.
How much would I save moving from Vermont to Texas or Florida?
Because Texas and Florida have no state income tax, your savings equal your entire Vermont state tax bill. The exact amount depends on your income and filing status. Enter your details in the calculator above for a precise estimate.
What is Vermont's income tax rate?
Vermont has a top marginal income tax rate of 8.75%. The effective rate you actually pay depends on your income level, filing status, and applicable deductions and credits.
Do all states have income tax?
No. Nine states have no individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire previously taxed interest and dividend income but has fully phased that out.
Should I consider other taxes when comparing states?
Yes. Income tax is only one part of the total tax picture. States without income tax often have higher property taxes (e.g., Texas) or sales taxes (e.g., Tennessee, Washington). A complete comparison should include property tax, sales tax, and cost of living alongside income tax.
Does this calculator include federal taxes?
The ranking focuses on state income tax differences. Federal income tax and FICA (Social Security and Medicare) are the same regardless of which state you live in, so they do not affect the state-to-state comparison.