Side-by-side tax comparison between Hawaii (11% top rate, graduated) and Vermont (8.75% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Hawaii uses a graduated income tax (1.4-11%) while Vermont has a graduated system (3.35-8.75%). On a $100K salary, Hawaii takes $7,150 in state and local taxes compared to Vermont’s $5,688 \u2014 a difference of $1,463.
Both states use graduated brackets, but Hawaii’s top rate of 11% is higher than Vermont’s 8.75%.
Vermont wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Hawaii | Vermont | Difference | Winner |
|---|---|---|---|---|
| $40K | $31,460 | $32,045 | +$585 | Vermont |
| $50K | $38,780 | $39,511 | +$731 | Vermont |
| $60K | $46,100 | $46,978 | +$878 | Vermont |
| $75K | $56,175 | $57,272 | +$1,097 | Vermont |
| $100K | $71,975 | $73,438 | +$1,463 | Vermont |
| $120K | $84,615 | $86,370 | +$1,755 | Vermont |
| $150K | $103,026 | $105,220 | +$2,194 | Vermont |
| $200K | $134,587 | $137,512 | +$2,925 | Vermont |
| $250K | $165,389 | $169,045 | +$3,656 | Vermont |
| $300K | $193,879 | $198,266 | +$4,388 | Vermont |
Take-home pay only tells part of the story. Hawaii has a cost of living index of 192 while Vermont is at 105 (national average = 100).
This is a substantial difference. After adjusting for cost of living, $100K in Hawaii has purchasing power of $37,487 compared to $69,940 in Vermont. Vermont wins on both raw take-home and cost-adjusted purchasing power, making it the clear winner for a $100K earner.
For a single earner at $100K filing jointly, take-home becomes $77,560 in Hawaii and $79,023 in Vermont \u2014 a difference of $1,463. The gap remains similar regardless of filing status.
On paper, moving from Hawaii to Vermont would save $1,463/year on a $100K salary, or $7,313 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $1,463/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.