State comparison
Vermont vs Alabama: which state is better to live in?
Alabama costs a median household about $4,800 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.
Vermont
High tax burden · COL index 111
Wins 7 categories
Alabama
Moderate tax burden · COL index 87
Wins 9 categories
Taxes: Vermont vs Alabama
Vermont has a graduated income tax topping out at 8.75%, which works out to 4.6% on a median income of $74,580, or $3,447 a year. 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 wins on income tax at 2026 rates.
Property tax is 1.73% of home value a year in Vermont and 0.39% in Alabama (Tax Foundation, 2023); on each state's median home that is $6,574 against $850, so Alabama has the lower rate.
Combined state and local sales tax averages 6.22% in Vermont and 9.22% in Alabama; Vermont is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $11,412 a year in Vermont, $6,602 in Alabama. Alabama is cheaper on total state and local tax.
Housing and cost of living
Vermont's cost of living index is 111 and Alabama's is 87, where 100 is the national average; Alabama is about 28% cheaper day to day.
The median home costs $380K in Vermont and $218K in Alabama (Zillow, 2024), a $162K gap in Alabama's favor. A two-bedroom rents for about $1,600 a month in Vermont and $1,050 in Alabama.
Home insurance averages $900 a year in Vermont and $2,400 in Alabama, so Vermont is cheaper to insure.
Safety
Violent crime runs 167 incidents per 100,000 residents in Vermont and 547 in Alabama (FBI Crime Data Explorer, 2023); Vermont is the safer state by that measure, with a rate 228% lower. Property crime is 1,390 per 100,000 in Vermont against 2,247 in Alabama, again favoring Vermont.
Health
Life expectancy is 79.8 years in Vermont and 73.2 in Alabama (County Health Rankings, 2024), a 6.6-year edge for Vermont. The Commonwealth Fund's 2023 scorecard ranks Vermont's health system 5th of 50 and Alabama's 41st, so Vermont scores better on care.
3.8% of Vermont residents have no health insurance against 11.2% in Alabama, which favors Vermont. Vermont expanded Medicaid and Alabama did not.
Schools
Education Week's 2023 Quality Counts report ranks Vermont's K-12 schools 6th in the country and Alabama's 44th, 38 places apart in Vermont's favor. Both states run school-choice voucher programs.
Laws and politics
In the 2024 presidential election Vermont went to Harris by 31 points and Alabama went to Trump by 28 points.
Vermont has permitless carry and a Giffords gun-law grade of B-; Alabama has permitless carry and a grade of F, so Vermont regulates guns more tightly and Alabama is the friendlier state for gun owners.
Abortion is protected by state law in Vermont and banned with narrow exceptions in Alabama, and marijuana is legal for adults in Vermont and medical only in Alabama as of 2026. The minimum wage is $13.67 an hour in Vermont and $7.25 in Alabama.
Climate and risk
Natural disaster risk is low in Vermont (blizzard, flood, nor-easter) and moderate in Alabama (tornado, flood), so Vermont is the lower-risk state. Annual average air quality index is 27 in Vermont and 38 in Alabama (under 50 is good), favoring Vermont.
Tax figures use a household earning the national median income and owning each state's median home, at rates in force as of 2026-09-04. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
7
Vermont
9
Alabama
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Score For My Profile →Questions people ask
Is Vermont or Alabama better to live in?
It depends on what you weigh most. Alabama on taxes ($6,602 a year for a median household against $11,412); 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, Vermont or Alabama?
Alabama is cheaper day to day: cost of living index 87 against 111. The median home is $380K in Vermont and $218K in Alabama (2024). On state and local taxes Alabama saves a median household about $4,800 a year.
Does Vermont or Alabama have lower taxes?
Alabama. A household earning $74,580 pays about $11,412 a year in Vermont ($3,447 income tax, $6,574 property tax on the median home and $1,392 in sales tax) and $6,602 in Alabama ($3,689 income tax, $850 property tax on the median home and $2,063 in sales tax), at 2026 rates.
Which is safer, Vermont or Alabama?
Vermont, on the FBI's 2023 figures. Violent crime is 167 per 100,000 residents in Vermont and 547 in Alabama; property crime is 1,390 against 2,247.
Which has better schools, Vermont or Alabama?
Vermont. Education Week's 2023 Quality Counts report ranks Vermont 6th of 50 for K-12 and Alabama 44th.
Is Vermont or Alabama better for retirees?
Alabama is friendlier to retirees on paper. Vermont taxes Social Security, partly exempts pensions and has an estate tax; Alabama does not tax Social Security, exempts pensions and has no estate or inheritance tax. Property tax on a median home is $6,574 a year in Vermont and $850 in Alabama.