Vermont Guide for Canadians

Quick Facts

State Income Tax	3.35% - 8.75% progressive rate
Sales Tax	6% state + 1% local (7% total)
Driver's License Grace Period	60 days for new residents
Residency Requirement for Tax	Present in Vermont for 183+ days or domiciled in Vermont
Vehicle Registration Deadline	60 days after establishing residency
REAL ID Deadline	May 7, 2025 for domestic flights

First 90 Days Checklist

Week 1-2: Essential Documents

• Gather required documents for driver's license and REAL ID
• Open US bank account with Vermont address
• Research rural internet and utility services

Week 3-4: Official Registration

• Apply for Vermont driver's license (within 60 days)
• Register vehicle if brought from Canada
• Register to vote in Vermont

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Establish Vermont ties and documentation
• Obtain Vermont vehicle insurance and inspection

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents for REAL ID:

• Valid Canadian passport (for identity and lawful status)
• Social Security Number documentation (if applicable)
• Two documents proving Vermont residency

Testing Requirements:

• Vermont does not recognize foreign driver's licenses
• Both written knowledge test and road test required
• Vision screening required

Important Notes:

• 60-day grace period for new residents
• REAL ID required by May 7, 2025 for air travel
• Winter driving conditions require preparation

Vehicle Registration

• Register within 60 days of establishing residency
• Annual safety inspection required
• No emissions testing required statewide
• Vermont insurance required for registration
• All-wheel drive/winter tires recommended

Tax & Residency Considerations

Vermont State Tax Profile

• **Progressive income tax** 3.35% - 8.75% (top rate at $213,150+)
• **Moderate sales tax** 6% state + 1% local (7% total)
• **High property taxes** (1.86% effective rate - 3rd highest in US)
• **Homestead exemption** available for primary residences

Establishing Vermont Tax Residency

Vermont residency is based on physical presence and domicile:

• Present in Vermont for 183+ days during tax year
• Domiciled in Vermont during tax year
• Maintain principal home in Vermont

Documentation to Establish Residency

• Vermont driver's license and voter registration
• Bank accounts and utility bills in Vermont
• Employment or business activities in Vermont
• Property ownership or lease agreements

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Vermont expanded Medicaid with broad coverage
• Green Mountain Care (state insurance marketplace)
• Travel insurance recommended for visitors
• Quality medical facilities in Burlington and surrounding areas

Prescription Medications

• Bring adequate supply from Canada
• Vermont has prescription importation programs
• Rural areas may have limited pharmacy access
• Some cross-border pharmacy access

Rural Healthcare Considerations

• Specialist care may require travel to Burlington or out-of-state
• Strong community health center network
• Telehealth services widely available
• Emergency services well-distributed despite rural nature

Special Considerations for Rural Living

Climate & Seasonal Considerations

• Four distinct seasons with long, cold winters
• Heavy snowfall (75-100+ inches annually)
• Peak foliage season September-October
• Short growing season for agriculture

Cost of Living

• Above national average (10-15% higher)
• High property taxes offset by lower sales tax
• Rural areas more affordable than Burlington area
• High heating costs in winter

Employment & Economy

• Agriculture, tourism, and manufacturing key industries
• Growing remote work and tech sectors
• Lower wages than national average
• Strong emphasis on small business and entrepreneurship

Housing Market

• Limited inventory drives higher prices
• Rural properties often include significant acreage
• Seasonal rental market in ski/tourist areas
• Property taxes among highest in nation

Infrastructure & Services

• Rural internet service improving but variable
• Longer distances to services and amenities
• Well-maintained road network
• Strong local government and community services

Cultural & Lifestyle Benefits

• Strong environmental consciousness and outdoor culture
• Farm-to-table food movement
• Active arts and cultural scene
• Close proximity to Canadian border

Rural Authenticity with Modern Challenges

Vermont offers genuine rural living with strong environmental values, but high property taxes and limited job opportunities require careful financial planning. The state's progressive politics and outdoor lifestyle appeal to many Canadians.

Special Considerations for Snowbirds

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons (183-day rule)
• Maintain Canadian insurance & banking relationships
• Close proximity to Quebec facilitates Canadian ties

Border Proximity Benefits

• Multiple border crossings to Quebec
• Similar climate and culture to Eastern Canada
• French language services available in some areas
• Easy access to Montreal (1-2 hours from most of Vermont)

Seasonal Property Considerations

• Extensive winterization required for seasonal properties
• Property management services available
• High property taxes require careful budgeting
• Strong rental market near ski areas

Winter Preparedness

• Reliable heating system essential
• Emergency supplies recommended
• Snow removal equipment/services needed
• Alternative power source recommended

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Enhanced Driver's License accepted at border
• REAL ID available for domestic travel
• Multiple convenient border crossings

High Property Tax Reality

Vermont has the 3rd highest property taxes in the US. While homestead exemptions help primary residents, the tax burden significantly impacts overall cost of living. Factor this into housing decisions.

Key Contacts & Resources