Updated January 2026
Vermont Veteran Benefits 2026
Vermont offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in VT for 2026.
Vermont Highlights
- Partial military retirement exemption
- Local property tax exemptions for veterans
- Free state park access for disabled veterans
- Vermont Veterans Home
Income Tax Treatment
Vermont has a state income tax.
Military Retirement Pay: Vermont exempts up to $10,000 of military retirement pay for those with AGI under $50,000.
Active Duty Pay: Active duty pay earned outside Vermont may be exempt.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Vermont does not tax VA disability payments.
Property Tax Exemption for Veterans
Disabled veterans may receive property tax exemptions at the local level. Amounts vary by town.
Maximum Benefit: Varies by municipality
To apply for property tax exemptions in Vermont, contact your county assessor's office or the Vermont Department of Veterans Affairs. You will typically need your VA disability rating letter and proof of residence.
VA Healthcare in Vermont
Vermont has approximately 1 VA medical center along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.