Connecticut has a reputation for having a stunning shoreline, esteemed universities, and a strong economy, but it has also come under fire for having a high cost of living. But is it actually the state with the highest taxes in the union? Let’s investigate this issue and contrast it with the close-by states of Vermont and New Hampshire.
With an average state and local tax rate of 10.19%, Connecticut is rated fifth in terms of overall tax burden, according to latest statistics from WalletHub. This is still higher than the tax rates in New Hampshire (8.47%) and Vermont (9.23%), which are both in the top 44. Despite having a lower average tax rate than most other states, New Hampshire does not have a state income tax, which has a big impact on how much residents pay in taxes.
The highest property tax rate in New England is found in Vermont, where the average rate is 1.86%. The average property tax rate in Connecticut is 1.63%, whereas New Hampshire has a slightly lower rate of 1.86%. Property taxes, however, might differ greatly based on the town or city in which you reside.
In terms of retirement, Vermont and New Hampshire are both well-liked locations for retirees because of their outstanding natural beauty, plenty of outdoor activity, and high standard of living. However, Vermont has a tendency to have a little higher cost of living than New Hampshire. The average yearly cost of living in Vermont is $54,595 compared to $50,874 in New Hampshire, according to a recent analysis by GoBankingRates.
The advantages of living in Vermont outweigh the higher cost of living. With a strong sense of community and dedication to sustainability, it consistently rates as one of the healthiest and happiest states in the nation. The state also provides a wide range of cultural and recreational options, including museum visits and music festivals, as well as mountain hikes and skiing.
It’s crucial to understand that the cost of living in Vermont varies based on where you reside if you’re thinking about moving there. Numbeo estimates that the average monthly cost of living for a single person in Montpelier, Vermont is $1,099.13 while it is $1,276.87 in Burlington, Vermont. In order to live comfortably in Vermont, you should earn at least $50,000 a year.
In conclusion, it’s crucial to take other considerations like property taxes and cost of living into account when comparing states, even though Connecticut does have a higher overall tax rate than Vermont and New Hampshire. Although Vermont is a little more expensive than New Hampshire, its citizens highly value the distinctive quality of life it offers. In the end, where you live should depend on your individual priorities and tastes.