Quick Vermont Tax Stats
| Tax Type | Rate / Info |
|---|---|
| Income Tax | Progressive 3.35% – 8.75% (top marginal) |
| Sales Tax | 6% statewide |
| Jock Tax | Vermont taxes income earned from work performed in the state |
| Cost of Living (Range) | $75,000 – $155,000+ annual for single-person moderate-to-high lifestyle (Burlington area) |
| Average Home Price | ~$350,000 – $450,000 (3-bed/2-bath home) |
Income Tax in Vermont
Vermont imposes a progressive income tax on earned income, with rates ranging from 3.35% in lower brackets, up to 8.75% at the top marginal rate.
This applies to all salary wages, bonuses, sponsorships and any/all other gross income earned from services performed in the state.
For professional athletes:
- Top marginal rates are substantial, particularly for athletes with high single-year earnings.
- Residence vs jock tax planning matters: athletes domiciled outside Vermont may still owe tax on income earned in the state.
- Combined federal + state burden becomes especially meaningful for players earning millions.
Example
An NFL player earning $18 million and domiciled in Vermont could face up to ~$1.58 million or more, in state tax alone at peak marginal rates.
This is before federal obligations, reducing net take-home compared with low/no-income-tax states.
Because Vermont’s top bracket is relatively high compared with many states, income tax liability becomes an important factor in residency decisions for professional athletes.
Sales Tax
Vermont has a 6% statewide sales tax on most goods and services.
There are no local add-ons, meaning the tax is consistent across the state.
For athletes and high earners:
- Consumption tax applies to large purchases (vehicles, gear, luxuries).
- Sales tax can be considered in lifestyle and expenditure planning.
Example
A $120,000 purchase of luxury equipment in Burlington would incur $7,200 in sales tax, a meaningful cost on discretionary spending for high-income individuals.
This also means that depreication occurs faster than in states with no sales tax, but slower than high sales tax states like Washington or California.
While lower than some states’ combined sales tax rates, Vermont’s consumption tax still contributes to the overall tax footprint for athletes.
Jock Tax
Vermont taxes income earned from work performed within the state, regardless of domicile.
- Athletes earning game, event, or performance, income in Vermont owe tax on those earnings.
- Residency outside Vermont does not eliminate tax owed on apportioned earnings tied to events or competitions held in the state.
Example
An NBA player traveling to play an away game in Burlington will owe a prorated share of income tax to Vermont for that game’s earnings, in addition to any liability in their home state.
Understanding Vermont’s jock tax application is critical for multi-state athletes with diverse competitive calendars.
Cost of Living and Housing
The cost of living in Vermont is moderate compared with major coastal markets, with variability depending on location:
- Burlington / Chittenden County: A professional athlete lifestyle, including housing, services, and transport, can run $100k–$155k+ annually.
- Smaller towns: Cost of living is lower, but amenities and access vary.
Housing
- Average 3-bed/2-bath home in Burlington metro ranges from $350,000 – $450,000, with variation based on neighborhood and proximity to lakes or mountains.
- Seasonally popular or resort areas (Stowe, Sugarbush) command higher property values.
Housing and living costs are meaningful considerations for athletes domiciling in Vermont, but moderate compared with top coastal metro markets.
Property Tax
Vermont has the highest property tax rate in the entire United States, with an effective rate of 1.42% as of 2026, holding a median of $4,648 in annual payments.
While Vermont has a relatively low cost of living compared to other coastal states, the property tax rate can make purchasing real estate in the state a less valued option than say in Florida or the Carolinas.
Residency Rules
Athletes domiciled in Vermont owe tax on all income earned within VT.
Establishing domicile in Vermont requires:
- Vermont driver’s license/state ID
- Documentation of primary residence
- Voter registration
- Physical presence and utility records
Residency carries implications for net earnings, as Vermont taxes worldwide income for domiciled residents.
Example
A college athlete domiciled in Vermont entering a professional career will owe Vermont income tax on guaranteed earnings, even when playing outside the state, making cross-state planning essential.
Why Vermont Matters for Athletes
- Top marginal income tax (8.75%) can significantly reduce net earnings
- Consistent 6% sales tax affects discretionary spending
- Jock tax rules apply to income earned in the state regardless of domicile
- Moderate cost of living but still meaningful for higher lifestyles
- Residency status significantly impacts net tax burden
Athletes competing in events across New England must understand Vermont’s tax regime as part of broader net-income planning strategies.
Want Every APSM Report In One Place?
The APSM Master Report Bundle includes all current APSM reports:
- Why $100M Pro Contract Only Nets $35-$55M
- 7 Ways Athletes Go Broke Within 5-Years
- 7 Ways Athletes Build Generational Wealth
- (Will Include future additions of reports as APSM grows)
You’ll Get:
- Deep financial literacy designed through a sports lens
- Net worth projections, contract forecasts & tax modeling
- Wealth frameworks & risk analysis
- Lifetime value mapping for both athletes and professionals
The most valuable way to learn the game of money through APSM.
Next Athlete State Tax Reads
- Washington D.C (U.S Capital) Athlete Taxes
- Virginia State Athlete Taxes
- New Hampshire State Athlete Taxes
- Maryland State Athlete Taxes
- Rhode Island State Athlete Taxes
Next Reads
- Inside the Washington Commanders’ Stadium Fight
- Inside Tyrese Haliburton’s $3.2 Million Indianapolis Mansion
- Why NHL Players Flock to Florida Teams: Taxes & Take-Home Pay
- Should MLB Introduce a Salary Cap
- 2025 NBA Rookie Contracts Summary
Credits
Sources: Vermont Department of Taxes, Tax Foundation: State Tax Rates & Structure 2025, Zillow / Redfin Housing Data, APSM Financial Research
Disclaimer: This article contains general financial information for educational purposes and does not constitute professional advice.
Apostle Sports Media 