What a taxable index-fund account is actually worth after expense-ratio drag and after Vermont takes its share of the gain — which, in most states, is not at the federal preferential rate.
There is no state equivalent of the federal preferential rate here — a long-term gain is charged at Vermont's normal income brackets, exactly like wages. This is the common case, and it surprises people who assume the federal 15% carries over. TREAT THE 40% WITH CARE -- IT ALMOST NEVER APPLIES TO A BROKERAGE PORTFOLIO. Vermont taxes capital gains at the ordinary rate schedule, but 32 V.S.A. 5811(21)(B)(ii) allows a subtraction of EITHER the first $5,000 of adjusted net capital gain income OR 40% of adjusted net capital gain from assets held more than three years. The 40% branch expressly EXCLUDES gains from: real estate used as a primary or non-primary residence; depreciable personal property other than farm property and standing timber; and stocks or bonds publicly traded or traded on an exchange, or any other financial instruments, regardless of whether sold by an individual or a business. So an ordinary investor selling appreciated index funds, individual stocks, or bonds gets the flat $5,000 exclusion and NOT the 40% one. The 40% branch is aimed at closely held business interests, farm property, and standing timber. Both branches are measured on adjusted net capital gain as defined in IRC section 1(h), reduced by qualified dividend income, and the total subtraction may not exceed the LESSER of 40% of federal taxable income or $350,000.
What your state actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, not a yes/no list.
2026 limits, employer match, the 60-63 super catch-up, and whether the Roth catch-up mandate applies to you.
When your RMDs start under SECURE 2.0, how much this year's is, and what missing it costs.
Vermont charges $4,664 in state income tax on a typical retirement income, $6,228 in property tax on its median home and $1,170 in insurance — $12,062 together, which is 48th of 50.
What retiring actually costs across all fifty states in 2026 — the three lines that decide it, why ranking states by income tax gets the answer wrong, the federal rules that follow you everywhere, and the decisions that are worth real money before you move.
What moving actually saves, on your own income mix rather than a headline rate — and how to establish domicile so the state you left cannot follow you.
Which account to draw first, priced. The three cliffs a withdrawal can cross without warning, the conversion window almost nobody uses, and why the order is the last big decision you can still change.