Vermont Tax Strategy: Green Mountain Freedom Planning
Vermont has a progressive income tax up to 8.75%. Combined with federal taxes, over 45% can go to government. Section 7702 provides complete tax freedom.
The Vermont Tax Challenge
Vermont's 8.75% top rate is among the highest in America. Combined with federal taxes, the burden on retirement income is severe despite the beautiful setting.
✅ The Good News
- Beautiful natural environment
- Strong quality of life metrics
- Growing remote work destination
⚠️ The Challenge
- Top income rate 8.75%—among highest nationally
- Combined state/federal can exceed 45%
- High cost of living compounds burden
Vermont Tax By The Numbers
Section 7702: Your Tax Freedom Solution
Section 7702 of the IRS tax code creates a powerful opportunity: access your retirement funds through policy loans that are completely tax-free—at both federal and state levels. For Vermont residents, this means escaping both the state tax burden and federal taxation entirely.
Federal Tax-Free
Policy loans bypass federal income tax entirely. No 22-37% federal tax on your retirement income.
State Tax-Free
No Vermont state income tax on policy loans. Your retirement income stays tax-free at the state level.
Vermont Professionals We Typically Serve
Remote Tech Workers
High earners working remotely from Vermont
Healthcare Professionals
UVM Medical Center specialists
Resort Industry Leaders
Stowe and ski industry executives
Relocation Retirees
Those drawn by Vermont quality of life
Vermont Areas We Serve
Matt Nye's Recommendation
"Vermont is gorgeous—the Green Mountains, the covered bridges, the fall foliage. But 8.75% state taxes plus federal means over 45% of your 401(k) goes to government."
"I understand why people love Vermont and refuse to leave. The seasons, the community, the quality of life—it is special. But those taxes can force people out in retirement."
"Section 7702 is how you stay in Vermont without the tax devastation. For remote workers, healthcare professionals, and resort executives, tax-free retirement income means you can afford the Green Mountain lifestyle you have earned."
— Matt Nye, 20-Year Industry Veteran
Frequently Asked Questions
How does Section 7702 help Vermont residents?
Section 7702 allows you to access retirement funds completely tax-free—avoiding Vermont's steep 8.75% rate plus federal taxes. This can mean 45%+ more retirement income.
Vermont taxes are high. Should I just leave?
Many do—but Section 7702 means you can stay. Tax-free retirement income makes Vermont affordable. Keep the mountains, the seasons, and the community you love.
I moved here to work remotely. Does this strategy still help?
Especially so. Remote workers often have high incomes facing Vermont's full tax rate. Section 7702 provides tax-free retirement income regardless of where you earned it.
Stowe and ski country are expensive. Can I afford to stay?
With Section 7702, yes. Tax-free retirement income means more cash flow for Vermont living costs. Every dollar saved on taxes is a dollar for the lifestyle.
Ready for Vermont Tax Freedom?
Discover how Section 7702 can eliminate both state and federal taxes on your retirement income. Schedule your free analysis today.
Schedule Your Vermont Tax Analysis →Free 30-minute consultation. No obligation. No sales pressure.