Side-by-side tax comparison between Minnesota (9.85% 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.
Minnesota uses a graduated income tax (5.35-9.85%) while Vermont has a graduated system (3.35-8.75%). On a $100K salary, Minnesota takes $6,402 in state and local taxes compared to Vermont’s $5,688 \u2014 a difference of $715.
Both states use graduated brackets, but Minnesota’s top rate of 9.85% 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 | Minnesota | Vermont | Difference | Winner |
|---|---|---|---|---|
| $40K | $31,759 | $32,045 | +$286 | Vermont |
| $50K | $39,154 | $39,511 | +$358 | Vermont |
| $60K | $46,549 | $46,978 | +$429 | Vermont |
| $75K | $56,736 | $57,272 | +$536 | Vermont |
| $100K | $72,723 | $73,438 | +$715 | Vermont |
| $120K | $85,512 | $86,370 | +$858 | Vermont |
| $150K | $104,147 | $105,220 | +$1,073 | Vermont |
| $200K | $136,082 | $137,512 | +$1,430 | Vermont |
| $250K | $167,258 | $169,045 | +$1,788 | Vermont |
| $300K | $196,121 | $198,266 | +$2,145 | Vermont |
Take-home pay only tells part of the story. Minnesota has a cost of living index of 99 while Vermont is at 105 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $73,457 in Minnesota vs $69,940 in Vermont. However, Minnesota actually provides better purchasing power despite Vermont’s take-home advantage.
For a single earner at $100K filing jointly, take-home becomes $78,308 in Minnesota and $79,023 in Vermont \u2014 a difference of $715. The gap remains similar regardless of filing status.
On paper, moving from Minnesota to Vermont would save $715/year on a $100K salary, or $3,575 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $715/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.