How to Retire Well in Vermont

After the Von Trapps fled their Austrian home, the family that inspired The Sound of Music decided to settle and ultimately retire in Stowe, Vermont. While Georg, Maria, and their melodic progeny were fleeing Nazi persecution, most retirees these days arriving in the state under less dramatic circumstances. Here’s how to retire well in Vermont:

How to Retire Well in Vermont

Like any state, retiring in Vermont comes with its joys and pains. The cost of living in Vermont tends to run higher than many other states, with the top ten cities averaging about 20 percent above the national average for life’s basics.

Vermont might not be the place for prosperous golden-agers looking for a land of low tax rates. The Green Mountain state charges between 3.35 percent to 8.75 percent for income tax – especially impactful for those with higher retirement incomes.

Before passing over this major producer of maple syrup, you’ll want to know this state’s tax system is sympathetic to low to middle-income Americans. With a more modest income factored in, Vermont comes in under the national average.

However, most types of retirement income are taxed, which starts adding up when you factor in other kinds of tax. For example, the average combined state and local sales tax is 6.22. While Vermont’s revenue collecting schemes might give you sticker shock, the sales tax does come in below the national average.

Where to Retire Well in Vermont

Vermont is all about New England charm and rolling, verdant hills. The state attracts hardy souls who enjoy nature-oriented endeavors, small businesses, and scenic, little towns, like these four options:


It’s a picture-perfect town with an appreciation for the aesthetic. Recognized in John Villani’s famous book The 100 Best Art Towns in America, it’s a popular place for the silver fox set to retire and partake of all the culture this place has to offer. Over 11,000 people call this place home, and the median income is $241,760. According to, the cost of living sits 17 percent above the national average. It’s not the most affordable, but if you wanted a second career opening your gallery, this is the place for you. Likely, you won’t be alone either. Over 20 percent of the town’s population is 65 years and over.


It’s another stately small town complete with quaint covered bridges and white church steeples. Over 15,000 people call Rutland home, and those enjoying their golden years can choose from the area’s two ski resorts, multiple golf courses, and 4,000 acres of national forest. The median home price is $137,900, and the cost of living is 9.9 percent higher than the national average. Over 21 percent of the population are seniors, so retirees will find a lively, like-minded community of individuals to spend time within the town.


As the capital of Vermont, this little gem nestles in the north-central area of the Green Mountain State. Like many other centers, classic architecture and an abundance of wilderness-related activities are hallmarks of this city. The population hovers around 7,300, with more than 20 percent being or retirement age. The median home price is 250,200, and the cost of living is 21 percent higher than the national average.

Read More:

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Should You Rent or Own in Retirement?

What is the Average Retirement Savings for Those Over 60?

Photo by Vladimir Soares on Unsplash