Vermont veteran benefits

Vermont fully exempts military retired pay from state income tax for households with federal AGI of $125,000 or less, and phases the break out up to $175,000. Veterans rated 50% or more get a property tax exemption, and the state has a veterans home in Bennington and a veterans cemetery in Randolph Center.

Military retirement payMostly 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.
Property taxVeterans 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.

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