Best Cities for Small Business in Vermont

Vermont ranks #20 out of 50 for small business owners and entrepreneurs, offering a favorable climate for new ventures. The state's fiscal health score of 51/100 is adequate, though fiscal conditions aren't a standout advantage.

Tax policy directly impacts the bottom line. Vermont's overall tax burden is 11.53% of income, with a 8.75% income tax rate that applies to both personal and pass-through business income. The 6.39% combined sales tax rate is moderate and worth factoring into pricing strategy. The economic environment (score: 63/100) with 2.7% unemployment indicates tight labor markets — good for consumer spending but potentially challenging for hiring.

Declining population (-0.3%) is a headwind for customer-dependent businesses, though it can reduce competition. The education system (score: 74/100) produces a reasonably well-prepared workforce. Housing at $388,000 median is manageable for employees at typical small-business salary levels.