Side-by-side tax comparison between New Jersey (10.75% 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.
New Jersey uses a graduated income tax (1.4-10.75%) while Vermont has a graduated system (3.35-8.75%). On a $100K salary, New Jersey takes $6,988 in state and local taxes compared to Vermont’s $5,688 \u2014 a difference of $1,300.
Both states use graduated brackets, but New Jersey’s top rate of 10.75% 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 | New Jersey | Vermont | Difference | Winner |
|---|---|---|---|---|
| $40K | $31,525 | $32,045 | +$520 | Vermont |
| $50K | $38,861 | $39,511 | +$650 | Vermont |
| $60K | $46,198 | $46,978 | +$780 | Vermont |
| $75K | $56,297 | $57,272 | +$975 | Vermont |
| $100K | $72,138 | $73,438 | +$1,300 | Vermont |
| $120K | $84,810 | $86,370 | +$1,560 | Vermont |
| $150K | $103,270 | $105,220 | +$1,950 | Vermont |
| $200K | $134,912 | $137,512 | +$2,600 | Vermont |
| $250K | $165,795 | $169,045 | +$3,250 | Vermont |
| $300K | $194,366 | $198,266 | +$3,900 | Vermont |
Take-home pay only tells part of the story. New Jersey has a cost of living index of 115 while Vermont is at 105 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $62,728 in New Jersey vs $69,940 in Vermont. The take-home winner also wins on purchasing power.
For a single earner at $100K filing jointly, take-home becomes $77,723 in New Jersey and $79,023 in Vermont \u2014 a difference of $1,300. The gap remains similar regardless of filing status.
On paper, moving from New Jersey to Vermont would save $1,300/year on a $100K salary, or $6,500 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $1,300/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.