Retire in Vermont: Cost, Taxes & FIRE Number for 2026
Retiring in Vermont costs about $60,000 a year on average, earning a D retirement tax grade and a #5 healthcare ranking. Here's the full breakdown — cost, taxes, and how much you actually need saved.
What It Costs to Retire in Vermont
The average retiree in Vermont spends about $60,000 a year ($5,000/month), based on BLS spending data for households 65 and older, adjusted for Vermont's cost of living. That works out to a standard retirement number of $1,500,000 under the 4% rule, or $1.71M for early retirees using the more conservative 3.5% FIRE withdrawal rate.
How the numbers below are calculated:
Annual cost = BLS Consumer Expenditure Survey 2024 (65+ household spending) × Vermont's cost-of-living index (MERIC Q3 2025).
Standard Retirement Number = Annual Cost ÷ 0.04 (4% rule, ~30-year horizon)
FIRE Number = Annual Cost ÷ 0.035 (3.5% rule, 40–50+ year horizon for early retirees)
Vermont earns a D retirement tax grade from Plootus Research and ranks #5 of 50 states for healthcare quality. Combined with an average annual salary of $59,620 for working residents (median $50,240), that gives a fuller picture of what building — and eventually spending down — a nest egg looks like here.
Vermont Retirement at a Glance
| Average annual retirement cost | $60,000/yr ($5,000/mo) |
| Standard Retirement Number (4% rule) | $1,500,000 |
| FIRE Number (3.5% SWR) | $1.71M |
| Retirement Tax Grade | D |
| State Income Tax | 8.75% max |
| Social Security Tax | ⚠️ Caution |
| Healthcare Quality Rank | #5 of 50 |
| FIRE-Friendliness Rating | ★★☆☆☆ |
| Avg. Annual Salary (working residents) | $59,620 |
| Median Annual Salary (working residents) | $50,240 |
Sources: BLS CES 2024 (65+); MERIC Q3 2025; BLS OEWS May 2024; Plootus Research 2026.
Your Vermont-Adjusted Retirement Number
Pre-filled with Vermont's average retirement spending — adjust for your own situation.
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How Vermont Compares to Nearby States
| State | Annual Cost | Retirement Number | Tax Grade | HC Rank |
|---|---|---|---|---|
| Vermont | $60,000 | $1,500,000 | D | #5 |
| Maine | $59,000 | $1,475,000 | C | #15 |
| New Hampshire | $63,000 | $1,575,000 | A | #3 |
| Rhode Island | $64,000 | $1,600,000 | D | #17 |
How Vermont Treats Retirees on Taxes and Healthcare
Vermont carries a D retirement tax grade from Plootus Research — one of the less tax-friendly states for retirees, largely driven by its income tax rate.
State Income Tax
Vermont's state income tax tops out at 8.75% max. Check current brackets and any retirement-income deductions before you file.
Social Security Tax
Vermont is flagged for caution on Social Security and other retirement-income taxation — confirm current rules with a tax professional before relying on this state for planning.
Vermont ranks #5 nationally for healthcare quality — one of the stronger states for retirees who prioritize access to care.
Frequently Asked Questions: Retiring in Vermont
Vermont earns a D retirement tax grade and ranks #5 of 50 for healthcare quality. Average annual retirement spending runs about $60,000, requiring roughly $1,500,000 in savings under the standard 4% withdrawal rule. Whether it's a good fit depends on your priorities — Vermont's state income tax is 8.75% max, and it warrants caution on Social Security/retirement-income taxation.
Vermont is flagged for caution on Social Security and other retirement-income taxation — confirm current rules with a tax professional before relying on this state for planning. Check current thresholds directly with the state, since exemptions often apply below certain income levels.
Using the standard 4% rule, retiring in Vermont on its average annual cost of $60,000 requires approximately $1,500,000 in savings. That figure excludes Social Security, which most retirees layer on top to reduce the amount they need from their own portfolio.
At a 3.5% safe withdrawal rate — the more conservative rate recommended for early retirees facing a 40–50+ year horizon — Vermont's FIRE number is approximately $1.71M, based on its $60,000/year average cost. Early retirees should also budget separately for healthcare before Medicare eligibility at 65.
Sources
- Bureau of Labor Statistics, Consumer Expenditure Survey 2024 (65+ age group)
- Missouri Economic Research and Information Center (MERIC), Cost of Living Index Q3 2025
- Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS) May 2024
- Kiplinger, Retirement Taxes 2026; WalletHub Best States to Retire 2026
- Plootus Research 2026 (tax grades, healthcare rank, FIRE ratings)
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