Vermont state and local taxes as a share of family income, by tax, by quintile, 2024

Vermont’s state and local tax system is less regressive than most states’, but middle-income Vermonters still pay a bigger share in taxes than the richest. Vermonters pay taxes in three big categories: on income, consumption, and property. The state income tax is progressive (higher-income Vermonters pay a bigger share of their income), while the sales tax is regressive—it takes a bigger bite out of lower-income people’s budgets. Property taxes are progressive up to the middle level of income and become regressive at the high end.