How Much Does It Cost to Live in Vermont?

Vermont presents a unique cost structure that influences daily expenditures. The state’s predominantly rural landscape shapes its economy and lifestyle. An emphasis on locally sourced products, from agricultural goods to artisan crafts, is common, which can affect pricing. Vermont’s climate, marked by cold, snowy winters and warm summers, also plays a role in household budgets, particularly concerning heating and cooling needs. These elements collectively contribute to the overall financial environment residents experience.

Housing Expenses

Housing costs in Vermont vary significantly by whether one rents or owns, and by location. As of late 2024 to mid-2025, average rent across all property types ranges from $1,560 to $2,200 per month. Renting in urban centers like Burlington can be higher, with one-bedroom apartments averaging $1,700 to $2,050 monthly. Rural areas or smaller towns like St. Johnsbury or Barre typically offer more affordable options.

For homeownership, the median home price in Vermont was around $421,400 in April 2024, decreasing to $414,400 by January 2025. Some 2025 estimates place it around $375,000. Home prices in Burlington often exceed $500,000, contrasting with rural properties found for under $300,000.

Utility costs are a substantial part of housing expenses, particularly due to Vermont’s climate. Total monthly utility bills, including heating fuel, electricity, and water/sewer, can range from $324.49 to $600. Estimates are often higher than the national average due to significant heating demands. Heating primarily uses oil, propane, or natural gas, with wood also being common.

Heating oil averages around $3.42 per gallon, while propane typically costs between $3.68 and $3.71 per gallon. Natural gas prices for residential consumers have been reported around $18.78 to $20.20 per thousand cubic feet. Electricity bills average $96 to $135.06 monthly for residential users. Water and sewer services contribute further, with a monthly water bill estimate around $18.

Everyday Necessities

Groceries represent a notable expenditure, with Vermont frequently ranking among the states with the highest food costs, sometimes second only to Hawaii. Residents typically spend around $497.21 monthly on groceries, which is higher than the national average. Individuals might budget approximately $370 per month for food and groceries, reflecting the impact of Vermont’s rural nature and its emphasis on local and organic products.

Utilities not directly tied to the home’s physical structure are also part of daily budgets. Internet services in Vermont have a broad range of costs, with average monthly prices varying from $48 to $151.85. Introductory plans can be found for $30 to $40 per month. Fiber optic options are increasingly available. Mobile phone services offer diverse plans, with basic options starting around $5 per month, and comprehensive unlimited data plans available from major carriers.

General personal care items, household supplies, and basic clothing costs in Vermont generally align with national averages. These categories are often part of broader household expenditure calculations.

Dining out is another component of everyday spending. In 2023, Vermont recorded some of the lowest dining-out expenditures nationally, averaging $290 per household monthly. A single person who frequently dines out might anticipate an average daily food cost of around $105. Individual meals can range from $10 to $31 for breakfast, $16 to $42 for lunch, and $31 to $73 for dinner, depending on the restaurant type.

Transportation Costs

Navigating Vermont often necessitates car ownership due to the state’s rural character and limited public transportation options outside of populated areas. Gasoline prices generally hover around $3.09 to $3.11 per gallon, influencing vehicle operational costs. This remains a consistent expense for most residents who rely on personal vehicles.

Vehicle insurance in Vermont is comparatively affordable. Full coverage car insurance typically costs between $1,398 and $1,491 annually, or $117 to $124 per month. Minimum coverage ranges from $329 to $405 yearly. These rates are lower than national averages.

Beyond fuel and insurance, vehicle registration is a recurring expense. For passenger vehicles, the annual fee is $91, or $167 for two years, with electric vehicles incurring slightly lower fees. Maintenance and repairs can add to expenses, with hourly labor rates around $125.

Public transportation is an option in select areas, primarily in and around Burlington, served by Green Mountain Transit (GMT). A single bus fare is $2, with a daily fare cap of $4 and a monthly cap of $50 for regular riders. Discounted fares are available for eligible individuals. Outside of these localized services, comprehensive public transit networks are not widespread, underscoring reliance on personal vehicles for most Vermonters.

Healthcare and Insurance

Healthcare costs in Vermont are among the highest in the nation for individual health insurance premiums. An average individual plan can range from $760 to $1,157 per month, equating to an annual cost of $9,120 to $13,884. For a family of four, the annual cost can exceed $32,000.

Vermont Health Connect serves as the state’s health insurance marketplace, offering plans from private carriers such as Blue Cross Blue Shield of Vermont and MVP. This platform is crucial for accessing financial assistance, which can substantially reduce the effective cost of health insurance. Federal Advanced Premium Tax Credits and state-funded subsidies are available, potentially lowering monthly premiums to an average of $178 or, for some income-eligible individuals, even to $0 for Bronze plans.

Out-of-pocket medical expenses, including deductibles and co-payments, are influenced by the plan selected. Enhanced Silver plans, available through Vermont Health Connect, provide lower out-of-pocket costs, with actuarial values ranging from 73% to 94%. This means the plan covers a higher percentage of medical expenses after the deductible is met.

Beyond health coverage, other insurance types contribute to household expenses. Homeowner’s insurance in Vermont is affordable, with average annual premiums ranging from $831 to $985, lower than the national average. Renter’s insurance averages between $166 and $188 annually, or about $14 to $16 per month. These rates provide protection for property and liability.

Taxation in Vermont

Vermont’s tax structure significantly impacts the overall cost of living, featuring a progressive state income tax system. For the 2024 tax year, income tax rates range from 3.35% to 8.75%, with the highest marginal rate applying to higher income brackets. This progressive design means a larger percentage is paid in state income tax as taxable income increases.

Property taxes in Vermont are a notable expense, often ranking among the highest nationwide. The state employs a two-part property tax system: a municipal portion for local services and an education portion for public schools. The average effective property tax rate on owner-occupied homes ranges from 1.56% to 1.78% of the property’s assessed value. These rates vary by municipality and property valuation, with an average annual property tax bill around $4,859. Homeowners must file a Homestead Declaration annually to receive the appropriate tax rate for their primary residence.

The state sales tax rate in Vermont is 6%. Some local municipalities can levy an additional 1% sales tax, resulting in a combined rate of up to 7%. Certain essential items are exempt from sales tax, including most food products, clothing, and prescription drugs.

Beyond these primary taxes, residents encounter other state and local levies. A gasoline tax of 32.61 cents per gallon is applied to fuel purchases, and a cigarette excise tax of $3.08 per pack is in effect. Vermont also imposes a purchase and use tax, typically 6% of the net taxable cost, on certain items like vehicles. For residents who earn income in another state or a Canadian province and pay taxes there, Vermont provides a credit against their state income tax liability to prevent double taxation.