Vermont

Social Security benefits aren’t taxed for joint filers that have a federal adjusted gross income of $60,000 or less, and neither for taxpayers with a federal AGI of $45,000 or less. But taxpayers that qualify for these income limits may qualify for a partial exemption on their benefits.

While groceries and clothing are fully exempt, on motor vehicles, there is an exemption from ordinary sales tax, but taxable under special 6% purchase and use tax. The income tax range goes as low as 3.35%, on up to $40,950 of taxable income for those who are single and up to $68,400 for joint filers.