#7 Vermont

The state income tax ranges from 3.35% to 8.75%. The 3.35% applies to married couples that are filing jointly and have a taxable income of a maximum of $68,400 or to married individuals that are filing separately and individual filers that have a taxable income of a maximum of $40,950.

The 8.75% applies to married couples that are filing jointly that have a taxable income of a maximum of $251,950 or to married individuals that are filing separately and individual filers that have a taxable income of a maximum of $206,950. 

In Vermont, your tax bill will require a significant sum of cash. Most retirement income is taxed in the Green Mountain State because of its high top income tax rate. If a resident’s federal adjusted gross earnings exceed a specific threshold, the state may also tax all or a portion of their Social Security payments.

At least Vermont has a moderate sales tax. The burden of this tax is minimized by the fact that the average total state and local tax rate is only 6.24% and that clothing and food for domestic usage are excluded.