[NYLIER]

Does VT tax Social Security benefits for retirees? I have heard that VT is one of the few states that does but I can't find any information on the government websites.
Happy New Year to One and All!

[flu189]

Originally Posted by NYLIER

Does VT tax Social Security benefits for retirees? I have heard that VT is one of the few states that does but I can't find any information on the government websites.
Happy New Year to One and All!

Yes it does as well as taxing all other pensions be they private, government (local, county, state, fed, military), and of course other plans such as 401s and 457s. This, combined with other taxes is forcing my hand at researching other states for eventual retirement as we realize that our eventual incomes combined with other COL issues will make staying here pretty difficult. I am trying to get a balance of four seasons, access to tax free commissary/PX and VA, with a variety of other lifestyle choices and south central Pa is looking like a strong possibility. To determine what your situation would be here just go to the Vt Dept of Taxation website as it makes for fascinating reading.

[mustmove]

Vermonttiger had something on this a few months ago. In comparison to lots of places VT brutally taxes retirees. Seems cruel to me, but we are a happy place so I must be wrong.

[East Coast Wanderer]

In Pa., the only taxes I'l pay are Federal on my annunity from a former employer and any salary I draw while working part time. Social Security is NOT taxed locally, state of federally.,

[NYLIER]

Thank you for the information Flu189. I just read your post to my husband and he feels the same way about moving to a State that is easier on retirees. If we stay here, we will be taxed on our two pensions, Social Security and what little we have left in our retirement fund. My husband doesn't get veteran's exemptions anymore either. When you add it all up, it just doesn't pay to live in VT. Taxing our Social Security benefits just seems immoral. As soon as the housing market shows an improvement, we are going to have to sell this house. I am going to seriously start exploring our options.

[ex-springfielder]

Vermont should change the state motto to "If you can't pay you can't stay".

[arctichomesteader]

VT taxes everything to death.

[flu189]

Just reading some of the opinion pieces and other letters recently shows that the mentality here will continue to be tax, tax, tax. I loved the one in the Argus/Herald recently suggesting that once again that the rich need to be taxed for the benefit of all here in Vt as they have the "wherewithall". I am far from rich and being a sympathizer, but do understand that such a solution will not provide the revenue needed, but rather drive out that ready cash source and prevent many new folks from even coming here. Now we will probably see state job cuts in the name of reducing the deficit. A very quick fix to show an immediate result. However, reading numerous economists reports this will be precisely the wrong avenue for lasting savings as it will merely add to the unemployment and social services rolls not to mention drag the economy down even further. The state spends an enormous amount of money on funding programs from A to Z which could be pared down or eliminated all together. In any case as for myself and wife we always knew we would have to downsize and scale back our lifestyles, we just did not expect to have to it right at this stage in our lives. Quality of life is very important, but the notion that by paying more and more for it as so many here in Vt seem to believe is some sort of justification is just plain wrong. I appreciate the positive aspects of life we have here, I just can't afford to continue to pay for them and support myself at the same time. In any case, we all have to make decisions and life is about tradeoffs.

[NYLIER]

Is there a website that will break down how each state taxes their residents? My neighbor came over yesterday and we were discussing the tax dilemma, especially school taxes. Why is it that someone that rents a house is able to vote for the school budget? The homeowner and the renter get to cast their vote. Should a person that rents a home and doesn't pay taxes on that home have the legal right to vote on a budget that affects the homeowners wallet?
My husband just read an article in the Rutland Herald today. It seems the elected prosecutors and sheriffs who make more than $60,000 a year are taking 5% pay cuts. Are the teachers and those administrators with six figure salaries doing the same?

[Sherylcatmom]

Originally Posted by NYLIER

Is there a website that will break down how each state taxes their residents?

There are a bunch of sites that sort this info in different ways. Here are a couple:

Interactive map: States income, personal and sales taxes
Taxes by State