Vermont Has the Highest Effective Tax Rate of Any State
This article was written with the assistance of A.I. technology, and has been edited and fact-checked by Melly Alazraki. Vermont has the highest effective tax rate of any state, according to the Tax Foundation, an independent, nonprofit, tax policy research…
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This article was written with the assistance of A.I. technology, and has been edited and fact-checked by Melly Alazraki.
Vermont has the highest effective tax rate of any state, according to the Tax Foundation, an independent, nonprofit, tax policy research organization. Vermont’s tax collections total $6,356 per capita, or 10.3% of the state’s income per capita of $61,882. Both the dollar amount and the tax rate are the highest of all states.
Vermont has a progressive income tax structure, which means that those who earn more money pay a higher tax rate than those who earn less money. And while the state’s 6% sales tax rate ranks 35th highest of all states, the tax rate on capital gains is one of the highest. Vermont is also among a minority of states that impose an estate tax.
Vermont’s property tax rate ranked fourth highest in 2021. The combined state and local property taxes in Vermont accounted for 44.3% of state and local revenue in fiscal 2020, well above the 32.2% national average.
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Hristina Byrnes is the editor of 247Tempo.com, where she handles the site's assignments and editing. She holds a master's degree in journalism from Columbia University, which she earned in 2012, and she specializes in translating complex health data research into engaging, accessible stories for a general audience.
When she's not poring over the latest data sets or brainstorming story ideas, you can find Hristina watching tennis, playing tennis with her son, or trying to get her daughter into tennis.
