Is Vermont Expensive? The Cost of Living in 2026, by the Numbers

Updated September 28, 2026 by Tony Walton, Principal Broker, New England Landmark Realty

Quick Answer

Yes. Vermont's overall cost of living was 13.4% above the national average in the second quarter of 2026, according to the Missouri Economic Research and Information Center (MERIC). Housing (28.2% above average), utilities, and health care drive the difference, while groceries cost about the same as the national average. MIT's living wage calculator puts the basic cost of living for a two-earner family of four in Vermont at $140,205 a year before taxes, and $51,831 for a single adult.

Key Takeaways

Two-Sentence Summary

Vermont costs more than most of the country mainly because of housing, heating, and health insurance, not everyday spending. Where you live in Vermont changes the math more than anything else: town medians this year ranged from under $300,000 to more than $1.2 million.

If You Only Remember 3 Things

1. Health insurance is the biggest surprise: the 2026 benchmark marketplace plan for a 40-year-old costs $1,299 a month in Vermont before subsidies, about twice the U.S. average of $625.
2. Heating is a real budget line. At March 2026 prices, every 100 gallons of heating oil cost about $556.
3. File a Homestead Declaration every year for your primary home. It keeps you on the lower homestead education tax rate and makes you eligible for the property tax credit.

Quick Facts

Housing: The Biggest Variable in Vermont's Cost of Living

Vermont's statewide median sale price was $438,280 in August 2026, up 0.8% from a year earlier (Redfin). But the statewide number hides huge local differences. For single-family homes in the first half of 2026, the median was $577,000 in Chittenden County, $530,000 in Lamoille County, and $400,000 in Washington County.

Town by town, the spread is even wider. Single-family medians for 2026 sales through late September:

• Barre City: $299,750
• Montpelier: $477,500
• Waterbury: $573,800
• Burlington: $606,500
• Stowe: $1,285,000

What a median home costs per month: on a $438,280 home with 20% down, principal and interest come to about $2,340 a month at the 7.03% average 30-year rate from September 24, 2026. Property taxes at Vermont's 1.51% average effective rate add about $550 a month, for roughly $2,890 before homeowners insurance.

Renting: HUD's 2026 fair market rent for a two-bedroom is $1,684 a month statewide and $2,140 in the Burlington-South Burlington area. To afford the statewide figure without spending more than 30% of income on rent, a household needs to earn $32.38 an hour, according to the National Low Income Housing Coalition.

Heating and Utilities: Plan for Winter

MERIC's utilities index for Vermont was 113.7 in the second quarter of 2026, 13.7% above the national average. Winter heating is the main reason. Many Vermont homes heat with fuel oil or propane, often with a wood stove or heat pumps as well.

At the end of the 2025-2026 heating season (March 30, 2026), Vermont residential heating oil averaged $5.558 a gallon and propane $3.733 a gallon (U.S. Energy Information Administration). That's about $556 for every 100 gallons of oil and $373 for every 100 gallons of propane. How many gallons a home burns depends on its size, age, and insulation, so ask the seller for the last year's fuel usage before you buy.

Efficiency Vermont offers rebates and programs for insulation, air sealing, and heat pumps that can bring heating costs down.

Health Insurance and Child Care

Health insurance is where Vermont stands out most. In 2026, the benchmark (second-lowest-cost silver) marketplace plan for a 40-year-old averaged $1,299 a month in Vermont, compared with $625 nationally. The lowest-cost bronze plan averaged $824 in Vermont versus $456 nationally (KFF). Those are prices before any premium tax credit; many households qualify for help through Vermont Health Connect. Most people with employer coverage pay a share of the premium instead.

Child care costs more relative to income in Vermont than in the country as a whole. Center-based infant care averages 14.0% of a married couple's median income in Vermont, versus 12.1% nationally (Child Care Aware of America, 2025). Vermont's Child Care Financial Assistance Program helps eligible families pay for care.

Vermont Taxes

• Income tax: graduated rates from 3.35% to 8.75% (tax year 2025).
• Sales tax: 6%, plus a 1% local option tax in some towns. Vermont also charges meals and rooms taxes.
• Property tax: a town (municipal) tax plus a state education tax. The average effective rate is about 1.51% of home value (Tax Foundation), but bills vary widely by town. A primary home with a filed Homestead Declaration pays the homestead education rate, and households with income of $115,400 or less (2025 tax year) may qualify for a property tax credit. See Vermont Property Taxes Explained.
• Transfer tax when you buy: 0.5% on the first $200,000 of a primary residence and 1.47% above that, or 3.62% for a second home. On a $438,280 primary home, that's about $4,500.

How Much Income Do You Need to Live in Vermont?

MIT's Living Wage Calculator estimates what it costs to cover basic needs (housing, food, child care, health care, transportation, and taxes) without public assistance. For Vermont, as of February 2026:

• Single adult, no children: $51,831 a year before taxes
• Two working adults, no children: $70,800
• Two adults, one working, two children: $90,720
• Two working adults, two children: $140,205 (higher than the one-earner family mainly because of child care)

These are basic budgets, not comfortable ones, and they're statewide averages. Buying a home in Chittenden County or a resort town takes more. Buying in Central Vermont or the Northeast Kingdom can take less.

Who Vermont Works Best For, Financially

Vermont tends to work well for households that bring their income with them: remote workers, dual-income professional couples, and retirees with home equity from a higher-priced market. Buyers coming from Boston, New York, or Connecticut often find Vermont housing reasonable by comparison, even though it's above the national average.

It's harder for households depending on a single entry-level wage, or anyone buying their own health insurance without a subsidy. If you're weighing a move, compare specific towns, not the state as a whole: the difference between a Barre City budget and a Stowe budget is bigger than the difference between Vermont and most other states.

Frequently Asked Questions

Is Vermont expensive to live in?

Yes. Vermont's cost of living was 13.4% above the national average in the second quarter of 2026 (MERIC), driven by housing, utilities, and health care. Groceries cost about the same as the national average.

What salary do you need to live in Vermont?

MIT's living wage calculator puts Vermont's basic cost of living at $51,831 a year for a single adult and $140,205 for a family of four with two working adults (February 2026). Buying a home in higher-priced towns takes more.

How much is health insurance in Vermont?

In 2026, the benchmark silver marketplace plan for a 40-year-old averaged $1,299 a month in Vermont before subsidies, about twice the U.S. average of $625 (KFF). Many households qualify for premium tax credits through Vermont Health Connect.

How much does it cost to heat a home in Vermont?

It depends on the home and fuel. At March 2026 prices, heating oil averaged $5.558 a gallon and propane $3.733 a gallon in Vermont, or about $556 and $373 per 100 gallons. Ask for a home's past fuel usage before you buy.

Is Vermont cheaper than New Hampshire?

For taxes, usually not: New Hampshire has no income tax on wages and no sales tax. For housing, often yes: Vermont's median sale price was $438,280 in August 2026, compared with $548,028 in New Hampshire in July 2026. See our Vermont vs. New Hampshire comparison.

How much are closing costs in Vermont?

On a $420,000 primary home, most buyers should expect roughly $8,000 to $17,000 in closing costs before the down payment, including about $4,234 in property transfer tax. See our Vermont closing costs guide.

What to Do Next

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The cost of living in Vermont depends on the town you choose. We can help you compare towns, tax bills, and heating costs before you buy. Call our office at 802-253-4711, reach Tony Walton directly at 802-233-4107, or contact us.

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• Moving to Vermont: The Complete Relocation Guide
• Vermont Real Estate Market Report
• Vermont Home Buying Guide
• Vermont Home Cost Calculator

Sources

• MERIC, Cost of Living Data Series (Second Quarter 2026): overall, housing, utilities, grocery indexes
• MIT Living Wage Calculator, Vermont (updated February 15, 2026)
• Redfin, Vermont Housing Market (August 2026 data): statewide median sale price
• Coldwell Banker Hickok & Boardman, Mid-Year 2026 Market Report (NEREN data): county single-family medians, January to June 2026
• Town medians: New England Landmark Realty from MLS single-family sales, January 1 to late September 2026
• Freddie Mac Primary Mortgage Market Survey, September 24, 2026
• National Low Income Housing Coalition, Out of Reach 2026: Vermont (HUD fair market rents, housing wage)
• U.S. Energy Information Administration, Vermont Weekly Heating Oil and Propane Prices (March 30, 2026)
• KFF, Average Marketplace Premiums by Metal Tier (2026)
• America's Health Rankings, Infant Child Care in Vermont (Child Care Aware of America, 2025)
• Vermont Department of Taxes, Tax Year 2025 Rate Schedules
• Vermont Department of Taxes, Sales and Use Tax
• Vermont Department of Taxes, Property Tax Credit
• Vermont Department of Taxes, Property Transfer Tax
• Tax Foundation, Vermont (effective property tax rate)
• Monthly payment, property tax, transfer tax, and per-100-gallon figures calculated by New England Landmark Realty from the sources above