State comparison
Alabama vs Vermont: which state is better to live in?
Alabama costs a median household about $4,700 a year less in state and local taxes than Vermont, mostly because property tax on a median home runs $850 a year against $6,574 in Vermont.
Alabama
Moderate tax burden · COL index 87
Wins 9 categories
Vermont
High tax burden · COL index 111
Wins 7 categories
Taxes: Alabama vs Vermont
Alabama has a graduated income tax topping out at 5%, which works out to 4.9% on a median income of $74,580, or $3,689 a year. Vermont has a graduated income tax topping out at 8.75%, which works out to 4.4% on a median income of $74,580, or $3,317 a year. Vermont wins on income tax at 2026 rates.
Property tax is 0.39% of home value a year in Alabama and 1.73% in Vermont (Tax Foundation, 2023); on each state's median home that is $850 against $6,574, so Alabama has the lower rate.
Combined state and local sales tax averages 9.22% in Alabama and 6.22% in Vermont; Vermont is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $6,602 a year in Alabama, $11,282 in Vermont. Alabama is cheaper on total state and local tax.
Housing and cost of living
Alabama's cost of living index is 87 and Vermont's is 111, where 100 is the national average; Alabama is about 28% cheaper day to day.
The median home costs $218K in Alabama and $380K in Vermont (Zillow, 2024), a $162K gap in Alabama's favor. A two-bedroom rents for about $1,050 a month in Alabama and $1,600 in Vermont.
Home insurance averages $2,400 a year in Alabama and $900 in Vermont, so Vermont is cheaper to insure.
Safety
Violent crime runs 547 incidents per 100,000 residents in Alabama and 167 in Vermont (FBI Crime Data Explorer, 2023); Vermont is the safer state by that measure, with a rate 228% lower. Property crime is 2,247 per 100,000 in Alabama against 1,390 in Vermont, again favoring Vermont.
Health
Life expectancy is 73.2 years in Alabama and 79.8 in Vermont (County Health Rankings, 2024), a 6.6-year edge for Vermont. The Commonwealth Fund's 2023 scorecard ranks Alabama's health system 41st of 50 and Vermont's 5th, so Vermont scores better on care.
11.2% of Alabama residents have no health insurance against 3.8% in Vermont, which favors Vermont. Vermont expanded Medicaid and Alabama did not.
Schools
Education Week's 2023 Quality Counts report ranks Alabama's K-12 schools 44th in the country and Vermont's 6th, 38 places apart in Vermont's favor. Both states run school-choice voucher programs.
Laws and politics
In the 2024 presidential election Alabama went to Trump by 28 points and Vermont went to Harris by 31 points.
Alabama has permitless carry and a Giffords gun-law grade of F; Vermont has permitless carry and a grade of B-, so Vermont regulates guns more tightly and Alabama is the friendlier state for gun owners.
Abortion is banned with narrow exceptions in Alabama and protected by state law in Vermont, and marijuana is medical only in Alabama and legal for adults in Vermont as of 2026. The minimum wage is $7.25 an hour in Alabama and $13.67 in Vermont.
Climate and risk
Natural disaster risk is moderate in Alabama (tornado, flood) and low in Vermont (blizzard, flood, nor-easter), so Vermont is the lower-risk state. Annual average air quality index is 38 in Alabama and 27 in Vermont (under 50 is good), favoring Vermont.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
9
Alabama
7
Vermont
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Score For My Profile →Questions people ask
Is Alabama or Vermont better to live in?
It depends on what you weigh most. Alabama on taxes ($6,602 a year for a median household against $11,282); Alabama on everyday costs (index 87 against 111); Vermont on safety (167 violent crimes per 100,000 against 547); Vermont on schools (ranked 6th against 44th).
Which is cheaper, Alabama or Vermont?
Alabama is cheaper day to day: cost of living index 87 against 111. The median home is $218K in Alabama and $380K in Vermont (2024). On state and local taxes Alabama saves a median household about $4,700 a year.
Does Alabama or Vermont have lower taxes?
Alabama. A household earning $74,580 pays about $6,602 a year in Alabama ($3,689 income tax, $850 property tax on the median home and $2,063 in sales tax) and $11,282 in Vermont ($3,317 income tax, $6,574 property tax on the median home and $1,392 in sales tax), at 2026 rates.
Which is safer, Alabama or Vermont?
Vermont, on the FBI's 2023 figures. Violent crime is 547 per 100,000 residents in Alabama and 167 in Vermont; property crime is 2,247 against 1,390.
Which has better schools, Alabama or Vermont?
Vermont. Education Week's 2023 Quality Counts report ranks Alabama 44th of 50 for K-12 and Vermont 6th.
Is Alabama or Vermont better for retirees?
Alabama is friendlier to retirees on paper. Alabama does not tax Social Security, exempts pensions and has no estate or inheritance tax; Vermont taxes Social Security, partly exempts pensions and has an estate tax. Property tax on a median home is $850 a year in Alabama and $6,574 in Vermont.