Retirement Calculator for Vermont (VT) — Free Calculator

Retirement Calculator for Vermont

Vermont's small-town charm, natural beauty, excellent healthcare, and strong community life make it attractive for certain retirees. However, the high income tax rates, cold winters, and limited healthcare options outside Burlington are important considerations.

Vermont Retirement Data

Data Point	Value
Average Retirement Savings (55-64 age group)	$110,000
Median Household Income	$66,234
Vermont Tax on Retirement Income	Vermont taxes Social Security benefits for higher-income residents, though lower and middle-income retirees may receive full or partial exemptions.

How Vermont Taxes Your Retirement Income

Vermont taxes Social Security benefits for higher-income residents, though lower and middle-income retirees may receive full or partial exemptions. Vermont income tax rates range from 3.35% to 8.75%, and Vermont taxes most other retirement income as ordinary income.

How Much Do You Need to Retire in Vermont?

The average Vermont household nearing retirement (ages 55-64) has approximately $110,000 in retirement savings. Financial planners commonly recommend having 10-12x your final salary saved by retirement age. For the median Vermont income of $66,234, that suggests a target of roughly $662,340 to $794,808.

Use CalcuWealth's retirement calculator to model your specific situation — including your expected Social Security, any Vermont pension, and your investment portfolio — to find your personal retirement number.

Data: US Census Bureau ACS 2023, Zillow (2024), Vanguard How America Saves (2023), NCES. Updated 2024–2025. Figures reflect state averages — consult a licensed financial advisor for personalized guidance.

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Frequently Asked Questions

Does Vermont tax retirement income?

Vermont has its own rules regarding taxation of retirement income including Social Security benefits, pensions, and retirement account withdrawals. Some states fully tax this income while others exempt part or all of it. Check with a Vermont tax professional for current rules specific to your situation.

What is the cost of living for retirees in Vermont?

The cost of living in Vermont varies by city and region. Housing, healthcare, transportation, and everyday expenses can differ significantly from the national average. Use cost of living comparisons to understand how far your retirement savings will stretch in different parts of Vermont.

Are there senior tax exemptions in Vermont?

Many states including Vermont may offer property tax exemptions, income tax credits, or other benefits for senior citizens. These can include homestead exemptions, senior freezes on property assessments, and additional standard deductions for taxpayers over 65. Check Vermont revenue department resources for current senior benefits.