Vermont
Military Benefits

Military Retirement, Income Limit

Starting with tax year 2025, Act 71 exempts military retirement and survivor benefits when federal adjusted gross income is $125,000 or less. The exemption phases out above that and ends at $175,000.

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.

Military Retirement Pay

Starting with tax year 2025, Act 71 (signed June 25, 2025) exempts military retirement and survivor benefit income when federal adjusted gross income is $125,000 or less. The threshold is the same for every filing status. If AGI is over $125,000 and under $175,000, the exempt share shrinks as income rises. The 2025 Schedule IN-112 instructions subtract AGI from $175,000, divide by $50,000, round to two decimal places, and multiply that fraction by the taxable military retirement and survivor income. At $175,000 or more, none of it is exempt. The exemption covers retired pay under Title 10, including the armed forces, National Guard, Space Force, and the commissioned corps of the Public Health Service and NOAA. Claim it on Schedule IN-112. Vermont Department of Taxes: https://tax.vermont.gov/individuals/income-tax-returns/who-needs-to-file/military-personnel

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.

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.

SCRA Protections

The Servicemembers Civil Relief Act (SCRA) applies in full force in Vermont. Key protections include: residential lease termination with 30 days written notice and a copy of military orders; a 6% interest rate cap on debts incurred before active duty service; protection from default civil court judgments while deployed; and foreclosure protections. Vermont courts recognize SCRA claims and JAG legal assistance attorneys at 802-338-3173 can provide guidance.

UOCAVA Absentee Voting

Vermont fully complies with the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA), which guarantees absentee voting rights for servicemembers and their dependents stationed outside Vermont. Vermont sends absentee ballots electronically upon request and accepts ballots by mail. Vermont National Guard members can request assistance through the unit voting assistance officer.

Additional Protections

Vermont law also prohibits the termination of utility services for the primary residence of a deployed servicemember when a family member remains in the home and requests a service continuation. Vermont also recognizes the federal protections against eviction for servicemembers paying rent at or below the federally established threshold (adjusted periodically).

Vermont Office of Veterans Affairs

Veterans benefits, property tax exemption applications

Vermont Department of Taxes

Income tax exemptions, military pay filing

Vermont DMV Military Services

License, registration, veteran plates

JAG Legal Assistance VT National Guard

SCRA, lease issues, legal assistance

VT National Guard Education Office

Tuition assistance, education benefits

Vermont Dept of Labor (Licensing)

Spouse professional license reciprocity

Vermont National Guard / Burlington ANG

Phone

802-338-3364

DSN

312-636-3364

Hours

Mon to Fri 7:30 a.m. to 4:00 p.m.