Side-by-side tax comparison between Pennsylvania (3.07% top rate, flat) 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.
Pennsylvania uses a flat income tax (3.07% flat + local) while Vermont has a graduated system (3.35-8.75%). On a $100K salary, Pennsylvania takes $4,570 in state and local taxes compared to Vermont’s $5,688 \u2014 a difference of $1,118.
Because Pennsylvania has flat brackets while Vermont is graduated, the gap between them changes at different income levels. Pennsylvania’s flat rate is predictable, while Vermont’s graduated brackets may benefit lower earners but penalize higher incomes.
Pennsylvania also has local income taxes (estimated at $1,500/year on $100K), which Vermont does not. This widens the gap beyond just state rates.
Pennsylvania wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Pennsylvania | Vermont | Difference | Winner |
|---|---|---|---|---|
| $40K | $32,492 | $32,045 | −$447 | Pennsylvania |
| $50K | $40,070 | $39,511 | −$559 | Pennsylvania |
| $60K | $47,648 | $46,978 | −$671 | Pennsylvania |
| $75K | $58,110 | $57,272 | −$838 | Pennsylvania |
| $100K | $74,555 | $73,438 | −$1,118 | Pennsylvania |
| $120K | $87,711 | $86,370 | −$1,341 | Pennsylvania |
| $150K | $106,896 | $105,220 | −$1,676 | Pennsylvania |
| $200K | $139,747 | $137,512 | −$2,235 | Pennsylvania |
| $250K | $171,839 | $169,045 | −$2,794 | Pennsylvania |
| $300K | $201,619 | $198,266 | −$3,353 | Pennsylvania |
Take-home pay only tells part of the story. Pennsylvania has a cost of living index of 98 while Vermont is at 105 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $76,077 in Pennsylvania 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 $80,140 in Pennsylvania and $79,023 in Vermont \u2014 a difference of $1,118. The gap remains similar regardless of filing status.
On paper, moving from Vermont to Pennsylvania would save $1,118/year on a $100K salary, or $5,588 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $1,118/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.