No. 1 Vermont

Vermont comes in at number one with an income tax that ranges from 3.55 percent to 8.95 percent and a 6 percent sales tax. Most retirement income is taxed, including Social Security. Vermont now limits deductions to $15,750 for single residents and $31,500 for married couples. Local jurisdictions can add 1 percent to the state sales tax. The median property tax on the state's median home value of $218,300 is $3,727, the ninth highest in the U.S., according to the Tax Foundation.


 

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