Vermont again ranks near bottom in taxes

Vermont continues to rank behind most other states when it comes to tax burden, according to a report by 24/7 Wall Street.

Two lists were compiled for this study: one that looks at overall state taxes, and another that focuses on property taxes.

Flickr/401kcalculator.org

HIGH TAXES: While not the worst state in the union, Vermont consistently ranks as one of the most expensive states to live in by a variety of metrics.

In the report, tax burdens vary widely from state to state.

“While all Americans are generally subject to the same federal tax code, each of the 50 states has broad authority to levy its own sales, income, and property taxes — or not,” it states. “No two state tax structures are exactly the same.”

The data for the study came from the tax policy group the Tax Foundation. 24/7 Wall Street considered a handful of variables for its state rankings.

Property taxes are the largest revenue source for local governments, according to the report.

“Depending on where you live, property taxes can be either a trivial expense or a major financial burden,” it states.

Vermont ranks fifth in the nation for high property taxes. The report gives an overview of the key numbers: Vermont’s effective property tax rate is 1.72 percent, and the state collects a per capita property tax of $2,541.72 — the fifth highest in the nation. Median household income in the state is $57,513, the 24th lowest.

On property taxes, the neighbors to the east in New Hampshire are even worse off, posting the third highest property tax burden in the nation. The Granite State’s per capita property tax is $3,054.30, the second highest in the nation. The effective property tax rate is 1.99 percent. The median household income is $73,381, the sixth highest in the nation.

The highest property tax burden in the nation can be found in New Jersey, where residents pay 2.16 percent of their income, or $3,074.43 per capita. Their situation is largely mitigated by the second highest median household income in the nation at $80,088.

24/7 Wall Street’s other list ranks states for most taxes overall. Vermont also didn’t fare so well in this one.

11. Vermont
Taxes paid as pct. of income: 10.3%
Income per capita: $52,225 (19th highest)
Income tax collections per capita: $1,171 (15th highest)
Property tax collections per capita: $2,542 (5th highest)
General sales tax collections per capita: $596 (11th lowest)

In the Vermont Statehouse, Democrats and Progressives have a supermajority, representing more than two-thirds of all members. This means Gov. Phil Scott, a fiscally conservative Republican, can do little to stop increases in the tax burden which might result from a new paid family leave program, a health insurance mandate and other social program expansions.

New Hampshire, in overall tax burden, fared much better than Vermont. The state ranks 44th in the nation when it comes to highest state taxes. Their taxes paid as a percentage of income is is 7.9 percent.

Maine did not fare so well, with the 14th highest overall state taxes. Like Vermont, it has high taxes paid as a percentage of income, at 10.2 percent. Residents pay $2,055 in property taxes per capita. The income per capita in Maine is $46,455.

New York has the highest state taxes in the nation. New Yorkers pay 12.7 percent of their income on taxes. Income tax collections per capital is $2,345. Not all is bad news for the Empire State — it has hey have the third highest income per capita at $64,540.

The state with the least state tax burden in the nation is Alaska, where residents pay just 6.5 percent of income on state taxes. Alaska does not have personal income or sales taxes.

Alaska is not alone in going without certain state taxes. The study notes that four states, including New Hampshire, do not charge sales taxes. Seven states don’t tax personal income.

“In some states, residents pay as little as 6.5 percent of their annual income in state and local taxes,” the report states. “In others, residents pay nearly double that amount. In the states where people pay the most in taxes, incomes also tend to be high.”

Michael Bielawski is a reporter for True North Reports. Send him news tips at bielawski82@yahoo.com and follow him on Twitter @TrueNorthMikeB.

Image courtesy of Flickr/401kcalculator.org

19 thoughts on “Vermont again ranks near bottom in taxes

  1. This article is a very incorrect analysis. It does not include fees and state mandated cost of living costs. When one calculates disposable income after taxes, fees, and state imposed costs of living, and compares it to other states, the difference is thousands per year that are not accounted for in the article analysis.

    I once calculated my disposable retirement income in Vermont, vs. Tennessee or Georgia. The difference is $1000 a month. I grew up here, but as soon as the house is ready to be on the market, I’m leaving.

    • I’ve been coming to AL, just west of Pensacola FL since 2001. Nice to see that white crap on TV. Looking for property. BUT so many are moving here, a house doesn’t stay on the market a month. This area is really nice, in the country and little travel to any shopping area and the gas is far cheaper than VT. My RV rent is $300 per month with all utilities and sewage. A laid back life. Hope the VA medical system is as good as WRJ, closest is Biloxi MS, 2 1/2 hours. Medical is a serious consideration.

      I have a cousin also here winters from my town in VT, looking to settle here. There’s so much to do and see, Nice people and being single, the gals are nice with nice attitudes. My brother in upper VT considering on moving out as well. There’s no roots in VT to consider when the Libs have ruined all family aspects. And it’s a struggle to live there. VT in my rear view mirror. I have great mobility, nothing set in concrete.

      I like the Bristol TN area, looks like VT, but is a colder climate. Those people are nice also, fell like being in VT. Some areas of NC are good, many Vt’ers settled there. Again it’s like VT. I’ve traveled the country in it’s entirety and know many places. SD is a wonderful state, but too cold. Have friends there I visit often. Stay away fro tornado alley!

  2. Tn looks better and better all the time. No income tax, low property tax in my county and we do have a high sales tax 9.25 but that is preferable to an income tax.

    • I’m thinking on Florida, raisin’ hawgs, figs & avocados.
      Them Burmese pythons grow pretty big, carry a bounty, and one will feed a few hawgs and chickens for a week. In spare time, ya can charter fish for marlin out in the Gulf Stream.

    • “Tn looks better and better ”

      And 6cent per Khr electricity with the new (2years ago) nuke reactor at Watts Bar…to say nothing
      of the warmer climate and very little white crap that covers the ground here. Your making me wish I didn’t live in my family’s house from 1873..

  3. Income tax, property tax, sales tax, gasoline tax, surtax on electric bills and telephone bills., What’s next? Just a little ole 1% here and a 1% there. No one will notice. The tax and spend Lib/Dem/Progs could care less about the folks as they fund their funky agenda.

  4. Stated: ” the state collects a per capita property tax of $2,541.72 — the fifth highest in the nation. Median household income in the state is $57,513,”

    A few questions: I consider the “income ” figure mainly comprises of those in the major populated areas; Chittenden County, Rutland, Windsor (people work in NH), Washington and to a lesser extent Bennington & Windham counties. There’s a large employment in government (to include the educational systems in most of each town). If you drive the state through the small towns and the highways you’ll see disrepair of towns, homes, farms. I can show you homes that are falling down. The values herein noted do not present a true picture of the economics of VT. Property taxes are forcing people to leave. So Montpelier is enticing people to return with a $500K “bribe”, 50 families at $10K per. The state will get that back by taxing them, if they take the bogus offer. Boy, that’s an inducement!!!!

    What business in VT pays that scale, other than all VT governments? On top of that if a VT resident works out of state, VT taxes their income. It’s captive slavery just for the “benefit” of living in VT. The taxation octopus tentacles of Montpelier reaches into every home and person and is corrupt / controlling.

    The saying is appropriate “Figures don’t lie (reality), but liars can figure”. After ALL the VT taxes, income (net income) has to be reduced by 50%. So a McDonald’s (most type of work) employee might make $25K (full time) their net might be more like $13K. If their wage goes up to $15 per hour, a higher tax for the feds and the state. They might be worse off. Government doesn’t work, just demand to be paid. Bernie likes the higher wage.

  5. AOC’s mother had to leave NY because “taxes were so high” she couldn’t afford to live there anymore! She took her mother to Fl with her, where she is happy getting to keep more of her money! I fear she ain’t seen nothin yet with her daughter and the new crop of Socialists who seem extreme even to Bernie!

    • I have read many articles wherein liberals leaving states that they ruined because of their liberal thinking / policies. Texas, Colorado and other alike states are complaining about the influx of the liberals. The trouble is, they are bringing their liberal ways attempting to change their “new found states” from what they “escaped” from.

      It’s happening in NH. 40 new Liberal Legislators into government. Mostly in the southern portions, south of Route 4, being close to MA. Because of it, NH is changing. The idiots don’t learn. They want a better life and freedom, but they do the opposite. I’m happy with a dirt road, they want paved roads with a gold stripe in the middle. They move next to a dairy farm, knowing of the smells (that I like, being raised and working around). Then they complain about the farm odors and try to put the farmer out of business. Then comes the developer buying out the farmer and walla, housing developments, more liberals, more crime, bigger government, known as “progress”.

      I heard that some liberals will argue that milk comes from a grocery store, not from cows. I was raised on raw cow milk, the best, directly from a farmer.

      Ah Liberals, how to transform them to reality?

      • Down in my neck of the woods, a liberal down here wold be considered a right wing fanatic in VT. I kid you not.

  6. Vermont’s cash cow ” Property Owners ” and then the Governor wonders why people are
    leaving the state, why the younger generation head to greener pastures……………..

    The Progressive DemocRATs the leaders in the state house will willfully tax its citizens to death
    in order to fund there, foolishness and the Governor has no veto power, what a sad state of affairs.

    We elect our officials to be fiscally responsible for the well being of its citizens apparently Montpelier
    has forgotten that responsibility.

    Vermonter’s must have the heads in the sand or there stupid, why would you re-elect this fools year after year ??

    • Some great questions…..I think some of the reason is we don’t know better. We probably have the most controlled press of any state in the nation. In reality it’s a socialists dream. Nobody is doing a comparison between states.

      Nobody is doing exit interviews, how is it in your new state? What do you miss about Vermont? What are the benefits?

      Burlington is in it’s only little world, subsidized by the rest of the state. The lot tax to pay for their sewer systems is but one example. Do they take care of their own trash? Own windmills? Own solar panels? Own septic systems? No, they rely on the rest of the state for that.

      It’s so bad, people don’t know what they don’t know. We’ve been so indoctrinated we can’t fathom doing something different or question what is going on.

      Do people know we have one of the lowest ethical grades in the entire nation? One of the big criteria about ethics is being able to find out what is really going on and you can’t do it. When you do, people won’t report on it. A classic example is Peter Shumlin’s land deal…friends of mine had been submitting this story to anyone who would listen, nobody would even investigate. Finally somebody said something, about 2-3 month, maybe more and it got some coverage.

      Look at Coventry scandal…1.3 million swindled from the tax payers, couldn’t do anything for years?????

      EB-5, will be the largest scandal in the United States, BUT NO government official got so much as a needs improvement on their review, when in fact the SOLE job of the state was just to make sure money stayed in the account until it was built.

      Then we have rampant censor ship, commentators being removed, selective editing, staged debates and questions that are all the same to fill the same agenda. The Smear by Sheryl Atkisson shed’s light on our national problem, Vermont is on steroids. One of the most influential, informative and captivating book an American citizen can read…..it lays out Vermont’s problem…it’s a national problem, we’re just at the spear tip of socialism.

      • I emailed Sheryl Atkisson’s Full Measure about the EB-5 situation in VT and how foreign investors lost millions on the Jay Peak and Burke Mt ski areas. And there’s a huge blocked off area in downtown Newport for a business that didn’t develop that was suppose to be a part of the projects. That involved Leaky Leahy and Shumlin involvement and how they had their presents in many photo opts,media exposure times. It can be Googled search to see. When the scandal became headlines, they scattered like cockroaches when the light hit the scene. I figured it’s a money grabbing event for them, otherwise show up? $500K for a foreigner to get a green card. One developer was from FL and had a corrupt history as articles mention.

        Sheryl hasn’t produced a program about it, wonder why. I’m very familiar with these VT NE Kingdom’s areas having lived there and see them first hand. Been on Jay & Burke Mt many times. My uncle helped to build the ski slopes on Burke.

        • It’s really tough to get through to these high profile people, I’m not sure how to do it, I certainly haven’t had any luck emailing any national news or profiles, I think the get way too much emails.

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