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Vermont
Military Benefits

Vermont fully exempts military retirement pay from state income tax and provides strong protections for active duty servicemembers and veterans. From Burlington to Colchester, Vermont's National Guard communities benefit from robust state and federal safeguards.

Income tax
Military retirement fully exempt from income tax
Property tax
Veterans property tax exemption
Highlight
National Guard education benefits
Protections
Strong SCRA tenant protections

Key Military Benefits

Overview of Vermont's major financial and legal protections for servicemembers and veterans.

Military Retirement Tax Exempt

Vermont fully exempts military retirement pay from state income tax. Enacted in 2022, this makes Vermont one of the most veteran-friendly states in New England for retirees.

Property Tax Exemptions

Qualifying veterans receive a $40,000 assessed value exemption on their primary residence. Veterans with 100% permanent and total disability pay zero property tax on their home.

National Guard Tuition Benefit

Vermont National Guard members can receive up to $10,000 per year in tuition assistance at Vermont public or private colleges. This benefit supports career development while serving.

SCRA Protections

Federal SCRA protections apply fully in Vermont, including lease termination with 30-day notice, 6% interest rate cap, and foreclosure protections.

Spouse License Reciprocity

Vermont offers expedited professional license endorsement for military spouses. Covered professions include nursing, teaching, and many others.

Veterans Hiring Preference

Vermont provides hiring preference for veterans in state civil service positions, supporting career transitions for separating servicemembers.

Tax Benefits

Vermont has significantly expanded military tax relief in recent years. Here is what servicemembers and veterans can expect when filing in Vermont.

Military Retirement Pay

Vermont fully exempts all military retirement pay from state income tax, effective tax year 2022. This applies to retired pay from all branches of the U.S. Armed Forces, including the National Guard and Reserves. Vermont joins a growing number of states recognizing the value of attracting military retirees to their communities.

Active Duty Pay

Active duty servicemembers domiciled in Vermont but stationed outside the state are exempt from Vermont income tax on their military pay. Vermont residency rules follow standard domicile principles. Servicemembers should consult the Vermont Department of Taxes or a JAG attorney for guidance on maintaining Vermont domicile while stationed elsewhere.

Property Tax Exemptions

Qualifying Vermont veterans receive a $40,000 assessed value exemption on their primary residence. This reduces the taxable assessed value of the home, directly lowering property tax bills. Veterans with a 100% permanent and total disability rating from the VA receive a full property tax exemption on their primary residence. Applications are filed with the local town assessor.

Education and Licensing

Vermont invests in Guard member education and makes it easier for military spouses to continue their careers after a PCS move.

Vermont National Guard Tuition Benefit

Vermont National Guard members in good standing may receive up to $10,000 per year in tuition assistance for courses at Vermont public or private colleges and universities. This benefit can be used for undergraduate or graduate coursework. Members should contact the Vermont National Guard Education Office at 802-338-3385 to confirm eligibility requirements and application procedures.

Spouse Professional License Reciprocity

Vermont participates in an expedited endorsement process for military spouses holding professional licenses from other states. Covered professions include registered nursing, licensed practical nursing, teaching, and a range of other licensed trades and professions. Military spouses should contact the Vermont Department of Labor at 802-828-4000 to begin the reciprocity process. Processing times are typically faster than standard out-of-state applicants.

Key Vermont Military Resources

These Vermont state agencies and military offices are your primary contacts for benefits, licensing, taxes, and legal assistance. All services are free to eligible servicemembers and veterans.

Vermont Office of Veterans Affairs

802-828-3379

Veterans benefits, property tax exemption applications

Vermont Department of Taxes

802-828-2865

Income tax exemptions, military pay filing

Vermont DMV Military Services

802-828-2000

License, registration, veteran plates

JAG Legal Assistance VT National Guard

802-338-3173

SCRA, lease issues, legal assistance

VT National Guard Education Office

802-338-3385

Tuition assistance, education benefits

Vermont Dept of Labor (Licensing)

802-828-4000

Spouse professional license reciprocity

Free For Military Families

School Liaison Officers in Vermont

School Liaison Officers (SLOs) are free Department of Defense resources for military families navigating school transitions. Vermont SLOs assist with school enrollment, records transfer, special education services, extracurricular eligibility, and connecting families to community resources around Burlington ANG and Camp Johnson.

Vermont National Guard / Burlington ANG

DSN
312-636-3364
Hours
Mon to Fri 7:30 a.m. to 4:00 p.m.

DSN numbers are for on-base or Defense Switched Network calls. Hours are local time and subject to change for federal holidays and training days.

PCSing to Vermont?

Vermont fully exempts military retirement pay and offers strong property tax protections. Our verified Vermont agents know the Burlington and Colchester communities near the National Guard installations.

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