What Is the Cost of Living in Vermont?

The cost of living includes expenses for housing, utilities, transportation, healthcare, and various goods and services needed to maintain a standard of living. Understanding these financial aspects is important for anyone considering residing in Vermont. Vermont’s overall cost of living is approximately 0.8% higher than the national average.

Housing Costs

Housing represents a substantial portion of living expenses, and costs in Vermont vary significantly depending on location. The average rent across Vermont is around $1,826 per month as of August 2025. In urban centers like Burlington, a one-bedroom apartment can average $1,735 per month, while a two-bedroom unit might cost about $2,467 monthly. More rural areas or cities like Rutland offer more affordable rental options, with rents starting around $1,150 per month.

For those considering homeownership, the median home sale price in Vermont was approximately $450,000 as of April 2025. This figure can be higher in popular areas, with the median home price in Burlington reaching around $527,500. Property taxes in Vermont are a significant component of homeownership costs, with an effective rate of about 1.56% on owner-occupied homes. This rate is among the highest in the nation. Additional expenses for homeowners include homeowner’s insurance and routine home maintenance.

Utilities and Groceries

Recurring household costs for utilities in Vermont range from $450 to $600 per month for essential services. When factoring in internet and phone services, the total monthly utility bill can rise to approximately $624.49. Electricity costs average around $113.21 per month. Heating expenses, a concern during Vermont’s colder months, can vary based on fuel type, with common options including oil, propane, natural gas, and wood. Natural gas costs about $14.86 per thousand cubic feet.

Grocery expenses in Vermont are among the highest in the nation. An individual’s average monthly grocery bill can be around $497.21, or even up to $680. This elevated cost reflects the state’s rural nature and the logistical challenges associated with supplying goods to smaller markets. Supporting local produce, while appealing, may also contribute to higher food costs.

Transportation Expenses

Transportation in Vermont largely relies on personal vehicles due to the state’s rural landscape and limited public transit infrastructure outside of major towns. The average price for a gallon of gasoline in Vermont is around $3.49. Car insurance premiums for full coverage range from $1,200 to $1,800 annually. Vehicle registration for a standard passenger car costs $76 annually. Starting January 1, 2025, owners of electric vehicles (EVs) will pay an additional $89 for a one-year registration, and plug-in hybrid electric vehicle (PHEV) owners will pay an extra $44.50 for a one-year registration.

While personal vehicle ownership is often necessary, some public transportation options exist. Bus services are available in several Vermont towns, including Burlington, providing local and regional routes. These services are operated by various companies such as Green Mountain Transit. However, their reach outside of more populated areas remains limited.

Healthcare and Miscellaneous Spending

Healthcare costs in Vermont are among the highest in the New England region. For individuals, average health insurance premiums can range from $400 to $600 per month, while family plans may exceed $1,100 per month. For those with employer-sponsored health insurance, the average annual cost is about $2,071. Out-of-pocket expenses, such as co-pays and deductibles, also contribute to the overall healthcare burden.

Beyond essential categories, miscellaneous spending covers a variety of personal expenses. These include clothing, personal care products, entertainment, and dining out. Childcare and education costs can also be substantial for families. For instance, annual childcare expenses for one child can be approximately $10,463, or between $1,038 and $1,742 or more per child per month.

Vermont’s Tax Structure

Vermont’s tax structure includes several state and local taxes that influence residents’ financial situations. The state imposes a progressive income tax with four brackets for the 2024 tax year, ranging from 3.35% to 8.75%. This progressive system means that higher earners face a steeper tax burden.

The amount owed is based on taxable income, factoring in deductions and exemptions. A statewide sales tax rate of 6% applies to most goods and services. Some cities and towns have enacted local option taxes, adding an additional 1%, bringing the combined sales tax rate to as high as 7%. Vermont also levies various excise taxes on specific products and services. These include gasoline at $0.3261 per gallon, cigarettes at $2.75 to $3.08 per pack, and alcoholic beverages such as liquor at $7.68 per gallon and beer at $0.27 per gallon. Excise taxes are typically included in the product’s price, indirectly impacting consumers.