What’s the cost of living in Vermont?
When considering a move to a new state, understanding the cost of living is vital for effective budgeting and financial planning. If you’re planning a move to Vermont, here are some current statistics related to the cost of living in the state that could help you make up your mind.
The average cost of living in Vermont
Vermont is home to over 645,000 people.
According to 2021 data from the Bureau of Economic Analysis, the average cost of living in the state is $50,761.
While according to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, the state ranks 41st in a list of states with the lowest to the highest cost of living.
Housing costs in Vermont
As of March 2023, the average home value in Vermont is estimated to be around $332,149, according to the Zillow Home Value Index as of March 2023.
It’s important to note that housing prices can significantly differ across various regions within the state.
Typical Home Prices in Vermont (Zillow Data):
Burlington - $485,867
South Burlington - $441,790
Montpelier - $360,365
Barre - $267,308
Rutland - $216,918
The average price of rental apartments nationwide is $1,702. Vermont apartments vary depending on which city you live in. A one bedroom apartment in Burlington starts at $1,600.
Utility costs in Vermont
Utility costs play a significant role in Vermont's overall cost of living. According to Forbes, the average monthly cost is around $405.
Average Monthly Utility Costs in Vermont:
Phone bill - $114
Energy bill - $109.24
Natural gas - $89
Streaming - $45.50
Internet - $30
Monthly water bill - $18
Grocery and food costs in Vermont
When it comes to groceries and food costs, Vermont generally aligns with prices found elsewhere in the United States.
According to Zippia, those in Burlington pay $497 on average each month. This is one of the highest amounts in the country.
According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.
Transportation costs in Vermont
Transportation costs, including gas prices and vehicle maintenance, impact Vermont's overall cost of living.
According to MIT, a single adult with no children can expect to pay upwards of $4,400.
Gas prices in Vermont are typically in and around the national average. Vermont was at the national average at the time of writing. These prices fluctuate over time.
It is also worth noting that prices can vary across different regions within the state.
Healthcare costs in Vermont
Understanding healthcare expenses is crucial when considering the cost of living.
The specific healthcare costs in Vermont can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates.
Annual Health Expenditure in Vermont Estimated by MIT:
One adult, no children - $3,262
One adult, one child - $8,916
One adult, two children - $8,927
Two adults (one working), no children - $6,485
Two adults (one working), one child - $8,927
Two adults (one working), two children - $8,852
Two adults (two working), no children - $6,485
Two adults (two working), one child - $8,927
Two adults (two working), two children - $8,852
Childcare costs in Vermont
Families in Vermont currently pay around $10,463 per year for childcare for one child. This figure doubles for two children.
However, it's important to note that this figure can vary across the state.
Taxation in Vermont
Vermont has a marginal state income tax rate of 3.35% to 8.75%.
Taxes in Vermont compared to neighboring states:
Vermont Income Tax Rate: 3.35% to 8.75% (marginal tax rates)
New Hampshire Income Tax Rate: No state income tax
Massachusetts Income Tax Rate: 5.00% (flat tax rate)
New York Income Tax Rate: 4.00% to 8.82% (marginal tax rates)
Maine Income Tax Rate: 5.00% to 7.15% (marginal tax rates)
The sales tax rate in Vermont is currently 6%. However, it's important to note that Vermont also allows local municipalities to impose an additional local option tax on certain purchases, which can vary by location. This additional local option tax can range from 0.5% to 1.0%. Therefore, Vermont's total sales tax rate can be between 6.5% and 7%.
The bottom line
The amount of money needed to live comfortably in Vermont can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think.
It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in Vermont. In addition, consulting with a financial advisor can provide valuable insights and assistance in managing expenses and financial planning.
Whether you’re retirement planning or considering relocating to chase a new career, Unbiased can assist you with your move's financial ins and outs. Find the right advisor for your needs today.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.