Vermont Tax Burden Rose Significantly Since FY2021
State self-remitted tax collections grew by 58.3 percent between fiscal years 2021 and 2025.
Updated on Oct. 13, 2026 in Taxes
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Vermont saw its per-return tax burden increase from $3,678.73 in FY2021 to $5,822.71 in FY2025. This 58.3 percent growth in self-remitted taxes represents the 3rd highest increase nationally.
Why it matters
The surge in per-return tax burdens moved Vermont from 37th to 22nd in national rankings for tax costs. This growth rate reached nearly double the national average of 30.6 percent for the same period.
Total state self-remitted tax collections climbed from $1.2 billion in FY2021 to $1.9 billion in FY2025. This represents a per-return increase of $2,143.97 over the four-year period.
The players
Vermont
Vermont is the state being analyzed for shifts in self-remitted tax collections and individual tax burdens.
The details
The analysis calculated per-return figures by using FY2025 total individual return counts as a constant denominator for both fiscal years. Vermont outperformed the Northeast regional average growth rate of 36.0 percent during this timeframe.
Timeline
FY2021 served as the baseline period for the tax data comparison.
FY2025 marked the end period for the comparative tax data.
Market Dynamics
Vermont's tax growth significantly exceeds the national 30.6 percent average, mirroring an aggressive fiscal trajectory that diverges from many other states. This shift highlights a departure from typical regional benchmarks within the Northeast.
The substantial rise in per-return tax burdens directly increases the annual tax liability for individual Vermont taxpayers. Residents may need to adjust their personal savings strategies or 401(k) allocations to account for the $2,143.97 average increase per return.
The takeaway
Taxpayers should review their recent financial filings to understand how their specific tax liabilities have evolved relative to state trends. Identifying these shifts early allows for more precise budgeting in future fiscal years.
Further reading
For more information on state fiscal policies, see Vermont Taxes.
Source note: This article includes information reported by Vermont Business Magazine.
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