There’s a lot of residents moving out of Vermont these days. In 2016, the state lost 16,500 residents to other states. Taxes are partially to blame, but the trend is somewhat troubling. Vermont has seen a net loss of residents for the past 10 years.
The most popular destination for people moving out of Vermont is other states in the Northeast. That’s not surprising. Most of the people moving IN to Vermont also hail from the same area. Family, work, and familiarity are likely the reason. However, there is one outlier to consider.
Welcome to Florida
In 2016, about 1,900 residents of Vermont moved to Florida; making it the second most popular destination. The two states couldn’t be any more different in terms of weather and geography. However, sunshine and sandy beaches aren’t the only reason Florida is a popular destination.
Florida has no state income tax. In 2016, residents who moved out of Vermont earned on average about $58,000 per family. Vermonters who moved to Florida averaged 50% more: $91,500.
Coincidence? Probably not. This follows a trend of residents leaving high-tax states and settling in areas with a lower cost of living. The absence of state income tax certainly impacts the average cost of living in a city.
Just how much money is leaving Vermont? No one can say. However, keep in mind those figures are from 2016 and thus before the new federal tax overhaul. Wealthy Vermont residents are used to deducting their state and local taxes (SALT) from their federal tax return.
With the new tax rules, SALT deductions are capped at $10,000 and Vermont will be a state where wealthy residents can expect a larger federal tax bill. Will this cause more residents to flee? Perhaps.
If you’ve got the itch to get out of Dodge (or Burlington), download the City vs City app. We compare your current cost of living with another city of your choosing and show you the difference a move can make.
City vs City looks at after-tax income, expenses, and all major state and local taxes to arrive at an accurate representation of your current cost of living. Compare your results with another city and see where you can save!