| Military retirement pay | Mostly exempt. If your federal AGI is $125,000 or less, military retired pay is fully exempt from Vermont income tax. Between $125,000 and $175,000 the exempt share shrinks, and above $175,000 there is no exemption. Survivor Benefit Plan annuities follow the same rule. Thrift Savings Plan withdrawals are taxed. |
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| Property tax | Veterans rated 50% or more by the VA, veterans on a non-service-connected VA pension, veterans with a permanent medical retirement, and their unremarried surviving spouses or minor children can exempt $10,000 of the appraised value of their primary home. Towns may vote to raise the exemption up to $40,000. Renters are not eligible. Most veterans must file each year before May 1; contact the Vermont Office of Veterans Affairs at 888-666-9844. |
| Veteran property tax exemption Taxes | $10,000 off appraised value of your home for veterans rated 50%+, with towns allowed to increase it to $40,000. |
| Military retirement income exemption Taxes | Retired pay is fully exempt at federal AGI up to $125,000, phasing out to $175,000. |
| Vermont Veterans' Home Health & Homes | Veterans home in Bennington; Vermont residents get admission priority. |
| Vermont Veterans Memorial Cemetery Burial | State cemetery in Randolph Center with no charge for the veteran in the government-marker section. |
| Free lifetime hunting and fishing license Recreation | Vermont residents rated 60%+ get a free permanent hunting, fishing or combination license. |
| Vermont Armed Services Scholarship Education | Aid for children, stepchildren and surviving spouses of certain service members who died on active or inactive duty. |
| Military and veteran plates Vehicles & ID | Thirteen military and veteran plates and six combat theater plates, using a Vermont Certificate of Veteran Status and your DD-214. |
| State hiring preference Jobs | Veterans with 90+ days of service and an honorable discharge, and some spouses, get preference points on state hiring. |
Last checked 2026-11. State rules change often; confirm with Vermont Office of Veterans Affairs before you rely on any benefit.