Vermont Lawmakers Propose Raising Taxes on Wealthy Residents

Bills aim to address state's financial challenges and invest in key areas

Published on Feb. 21, 2026

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A group of Vermont lawmakers have introduced a package of bills that would raise taxes on residents making over $250,000 per year and those with second homes. The goal is to reclaim tax breaks given to the wealthy and use the funds to address issues like healthcare, the environment, education, and food security.

Why it matters

Vermont is seeking to 'correct an imbalance' created by federal policies that have accelerated economic inequality. The proposed tax increases on the state's wealthiest residents aim to generate revenue that can be reinvested in key priorities to benefit the broader population.

The details

Two of the bills would raise taxes on those making over $250,000 a year and on those with second homes. Another bill would use the funds raised to address needed repairs for Vermont schools. Lawmakers say the proceeds could be reinvested in areas like healthcare, the environment, education, and food security.

  • The bills were introduced by a group of lawmakers in the Vermont House and Senate.

The players

Rep. Kate Logan

A Vermont state representative from the Progressive Party who supports the tax increase proposals.

Sen. Bernie Sanders

The U.S. Senator from Vermont who has been pushing for similar tax increases on the wealthy in California.

Gavin Newsom

The Governor of California who does not support the proposed tax increases, concerned about residents leaving the state.

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What they’re saying

“It's correcting an imbalance created by our federal leadership, who have chosen to accelerate the worst economic inequality in the US since the 1920s.”

— Rep. Kate Logan, Vermont State Representative (921wvtk.com)

“The question is simple, should the top 5% contribute a little more so the bottom 95% can afford to work, live and prosper here?”

— Rep. Kate Logan, Vermont State Representative (921wvtk.com)

What’s next

The Vermont legislature will need to debate and vote on the proposed tax increase bills.

The takeaway

Vermont is seeking to address growing economic inequality by raising taxes on its wealthiest residents, with the goal of generating revenue to invest in key priorities that benefit the broader population. This reflects a broader trend of states pursuing tax increases on the wealthy to fund important public services.