Median family income in Vermont rose to a record high of $68,555 in 2008, according to The Vermont Economy Newsletter’s annual analysis of just-released Vermont Tax Department data. After adjusting for inflation, the income earned by the median family (half of all families earn more and half earn less than the median) rose by $300, or 0.4 percent in 2008.
“The rise in income in 2008 was very small, but it was still positive. Given that the economy was in a recession, it’s somewhat surprising” noted Art Woolf, co-author of the analysis and editor of The Vermont Economy Newsletter. “From 2003, when income growth bottomed out after the last recession, to 2008, real median family income grew by just over $4,000. And since 1975, the first year that we have data, the real income for a typical Vermont family has grown by more than $25,000.”
”During 2009, by contrast, the full force of the recession was felt by most Vermonters. Job losses and income declines were pervasive throughout this past year, and we expect median family income to do worse in 2009,” continued Woolf.
“Jobs declined throughout 2009 and won’t begin growing until early 2010,” said Richard Heaps, the study’s other co-author. “We expect the median family income to fall in nominal dollars. After adjusting for the expected decline in overall prices we project real median family income will fall by 2.5 percent, the biggest drop since 1991,” he continued.
The Vermont Tax Department data are the most comprehensive data available on Vermont family income. All other data sources are based on a small sample of Vermonters. The Tax Department data is based on the complete universe of more than 125,000 Vermont families with both a husband and wife present.
Family income data for 2009, based on tax returns that Vermonters will file next year, will be available in December 2010.
Actual Data:
Nominal Income
Inflation Adjusted Income
1975
$12,036
$42,810
1976
$13,440
$45,210
1977
$14,466
$45,741
1978
$16,533
$50,074
1979
$17,967
$49,661
1980
$19,193
$47,748
1981
$20,622
$46,844
1982
$21,019
$45,029
1983
$22,510
$46,249
1984
$23,609
$46,599
1985
$25,343
$48,361
1986
$27,347
$51,257
1987
$30,618
$55,513
1988
$32,750
$57,276
1989
$34,680
$58,143
1990
$35,399
$56,531
1991
$35,460
$54,668
1992
$36,953
$55,561
1993
$37,557
$55,107
1994
$38,755
$55,676
1995
$40,407
$56,685
1996
$42,262
$57,750
1997
$44,516
$59,543
1998
$47,309
$62,408
1999
$49,578
$64,064
2000
$52,387
$65,499
2001
$53,609
$65,197
2002
$53,790
$64,377
2003
$54,958
$64,338
2004
$57,677
$65,744
2005
$59,959
$66,128
2006
$62,912
$67,183
2007
$65,786
$68,314
2008
$68,555
$68,555
2009F
$66,498
$66,833
Source: Northern Economic Consulting, Westford, VT. 12.15.2009.