Is $40,000 a good salary in Vermont?

$40,000 in Vermont provides a monthly take-home of approximately $2,742 after taxes. Across major Vermont cities, this salary is rated manageable, with an average monthly surplus of $180.

What is the cost of living on $40,000 in Vermont?

The average monthly living cost across major Vermont cities is approximately $2,562 for a single adult (rent, food, transport, utilities, healthcare). On $40,000 take-home pay of $2,742/month, you would have roughly $180/month remaining.

Living in Vermont · 2026

Is $40,000 enough to live in Vermont?

Single adult · VT · 2026 tax brackets · Real cost-of-living data

Statewide verdict:Manageable

Monthly take-home

$2,742

Avg monthly expenses

$2,562

Avg monthly surplus

$180

Savings potential

~7%

After-tax take-home in Vermont

Gross salary$40,000

Federal income tax− $2,694

State income tax− $1,340

Social Security− $2,480

Medicare− $580

Annual take-home$32,906

Effective tax rate17.73%

How $40,000 feels in Vermont cities

Rent: HUD FMR 2026 · Food: USDA Low-Cost Plan × COL · Transport/Utilities/Healthcare: BLS CES × COL

Burlington

COL index: 1.28× national avg

Very tight

Rent (1BR)

$1,800

Food

$537

Transport

$224

Utilities

$211

Healthcare

$256

Total: $3,028/mo

Surplus: $-286/mo

Rent burden: 65.6% — Unaffordable (> 50%)

Full Burlington analysis →

South Burlington

COL index: 1.25× national avg

Very tight

Rent (1BR)

$1,750

Food

$528

Transport

$219

Utilities

$206

Healthcare

$250

Total: $2,953/mo

Surplus: $-211/mo

Rent burden: 63.8% — Unaffordable (> 50%)

Full South Burlington analysis →

Rutland

COL index: 0.98× national avg

Comfortable

Rent (1BR)

$1,200

Food

$462

Transport

$172

Utilities

$162

Healthcare

$196

Total: $2,192/mo

Surplus: $550/mo

Rent burden: 43.8% — High (35–50%)

Full Rutland analysis →

Barre

COL index: 0.93× national avg

Comfortable

Rent (1BR)

$1,100

Food

$440

Transport

$163

Utilities

$153

Healthcare

$186

Total: $2,042/mo

Surplus: $700/mo

Rent burden: 40.1% — High (35–50%)

Full Barre analysis →

Montpelier

COL index: 1.05× national avg

Manageable

Rent (1BR)

$1,350

Food

$484

Transport

$184

Utilities

$173

Healthcare

$210

Total: $2,401/mo

Surplus: $341/mo

Rent burden: 49.2% — High (35–50%)

Full Montpelier analysis →

Winooski

COL index: 1.18× national avg

Very tight

Rent (1BR)

$1,600

Food

$519

Transport

$207

Utilities

$195

Healthcare

$236

Total: $2,757/mo

Surplus: $-15/mo

Rent burden: 58.3% — Unaffordable (> 50%)

Full Winooski analysis →

50 / 30 / 20 Budget Planner

Based on your monthly take-home of $2,742 ($32,904/yr)

Needs 50%Wants 30%Savings 20%

Needs50%

$1,371

per month

›Rent / mortgage
›Groceries
›Utilities
›Insurance
›Minimum debt payments
›Transportation

Wants30%

$823

per month

›Dining out
›Streaming services
›Gym
›Hobbies
›Travel
›Shopping

Savings20%

$548

per month

›Emergency fund
›401(k) / IRA
›Investments
›Down payment fund
›Debt payoff (extra)

Needs / year

$16,452

Wants / year

$9,871

Savings / year

$6,581

Salary Intelligence

Financial pressure in Burlington

Rent alone would take 66% of take-home income. This salary creates significant financial pressure in this city — a $72,000 annual income or lower rent is needed to reach affordability.

Lifestyle score: 1.4/10 (Difficult)

Lifestyle Assessment

A $40,000 salary does not fully cover typical living expenses for a single adult in Burlington, Vermont. Monthly costs exceed take-home pay by $286, indicating this income is insufficient for an independent lifestyle here without additional income or reduced spending.

Purchasing Power

Burlington's above-average cost of living (index: 1.28) means $40,000 provides the purchasing power of roughly $31,250 in an average-cost US city, or $36,875 in Austin. Moving to a lower-cost state could effectively increase your take-home by thousands.

State & National Benchmark

$40,000 is 10% below the Vermont individual median of $44,500. Consider negotiating a higher salary or exploring higher-paying roles in this state.

State individual median

$44,500

-10%

State household median

$76,643

-48%

Tax reduction strategies

Maximize 401(k) Contributions — Up to $5,170 in federal tax (22% bracket)

Contribute to a Traditional IRA — Up to $1,540 in federal tax (22% bracket)

$40,000 vs. Vermont income benchmarks

Individual median (Vermont)

$44,500

-10% vs. this salary

Household median (Vermont)

$76,643

-48% vs. this salary

Source: US Census Bureau ACS 2023

Related salary insights

Explore other salary levels in Vermont

$40,000 $60,000 $100,000 $150,000 $200,000 $300,000

Reviewed by

Finance Editor

CPA, 10+ years in personal finance

Data Sources

•Tax calculations: IRS federal tax tables
•Rent data: HUD Fair Market Rents
•Cost-of-living index: C2ER / ACCRA Cost of Living Index

Data updated monthly using government datasets.