Updated August 2026

Vermont Veteran Benefits 2026

The Green Mountain Boys started something — Vermont keeps it going.

Vermont’s benefits are quietly generous: a two-dollar lifetime parks passport and free licenses at 60%. Verified against Vermont statutes and agencies, claim by claim.

Vermont Highlights

Full military retirement exemption (AGI-conditioned)
Local property tax exemptions for veterans
No purchase-and-use tax and no registration fees on vehicles bought with a VA automobile grant
$2 Green Mountain Passport: lifetime free state park day use for honorably discharged resident veterans
Free permanent hunting & fishing license at 60%+ service-connected disability (big game included; moose excluded)
Vermont National Guard Tuition Benefit Program (in-state tuition at UVM & Vermont State Colleges)
Vermont Veterans Home

Wooden covered bridge with autumn foliage on the hillside behind it in rural Vermont — Covered bridge in rural Vermont. Carol M. Highsmith, Library of Congress

Income Tax Treatment

Vermont has a state income tax.

Military Retirement Pay: Starting with the 2025 tax year, Vermont fully exempts military retirement pay for retirees with federal AGI of $125,000 or less, phasing out between $125,000 and $175,000.

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 Disabled Veterans in Vermont

Type: Varies by city/county

Vermont sets a state MINIMUM disabled-veteran property-tax exemption of $10,000 of appraised value (applied to both the municipal and the statewide education grand lists). A town MAY vote (majority at an annual/special meeting) to increase the MUNICIPAL portion of the exemption up to $40,000 of appraised value. Eligibility requires the veteran (or qualifying family member) to be receiving VA disability compensation for at least 50% disability, OR death compensation / dependency and indemnity compensation (DIC), OR a non-service-connected VA disability pension. Administered via the Vermont Office of Veterans Affairs.

VA disability rating / category	What you get
At least 50% VA disability (or receiving death compensation, DIC, or a VA disability pension)	Minimum $10,000 of appraised value exempt statewide; town may vote to increase the municipal-grand-list portion up to $40,000 of appraised value.Must be a Vermont resident with the property as the primary residence/homestead. Apply through the Vermont Office of Veterans Affairs by May 1 of the first year sought; exemption then remains until the property title transfers. The increase above $10,000 (up to $40,000) applies only to the municipal grand list and only if the town has voted for it.

VA disability rating / category

What you get

At least 50% VA disability (or receiving death compensation, DIC, or a VA disability pension)

Minimum $10,000 of appraised value exempt statewide; town may vote to increase the municipal-grand-list portion up to $40,000 of appraised value.Must be a Vermont resident with the property as the primary residence/homestead. Apply through the Vermont Office of Veterans Affairs by May 1 of the first year sought; exemption then remains until the property title transfers. The increase above $10,000 (up to $40,000) applies only to the municipal grand list and only if the town has voted for it.

Income limit: None
Age requirement: None
Surviving spouse: An unremarried widow or widower of a previously qualified veteran is entitled to the exemption WHETHER OR NOT the survivor is receiving government compensation or pension. A child of a qualifying disabled veteran may also be a qualifying family member under the statute.
Counts being paid at 100% via unemployability (TDIU)? Yes — being paid at the 100% rate via Individual Unemployability (TDIU) qualifies

Recent change: Statutory structure ($10,000 minimum, up to $40,000 by town vote, 50% threshold) is longstanding and current for the 2025 assessment year per 32 V.S.A. 3802(11). No major 2023-2026 change to the dollar bands identified; confirm no recent legislative amendment.

Before you rely on a dollar figure: this benefit is set locally and the exact amount depends on your city/county. Confirm with your county assessor or the Vermont Department of Veterans Affairs using the source link below.

Source: 32 V.S.A. 3802(11) and a second official source. Verified June 2026 against primary sources.

To apply, contact your county assessor's office or the Vermont Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.

Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.

Check your exemption by rating & state →

Vehicle & Registration Benefits

Purchase & use tax exemption (VA auto grant): Vermont’s motor vehicle purchase and use tax does not apply to “a motor vehicle acquired by a veteran with financial assistance from the U.S. Department of Veterans Affairs, or a vehicle obtained as a replacement to one acquired with such assistance” under 32 V.S.A. § 8911(14). To claim it, include a copy of your approved VA Form 21-4502 (the VA automobile-allowance certification) with your application. A separate, non-veteran-specific clause — 32 V.S.A. § 8911(12) — also exempts one vehicle owned or leased by a person with a permanent physical disability whose controls have been altered to enable the person to drive (or fitted with a mechanical lifting device), if the Commissioner of Motor Vehicles certifies the exemption under 32 V.S.A. § 8901.

Free registration for VA-assisted vehicles: Under 23 V.S.A. § 378 (as amended effective July 1, 2025), no registration fees — including the annual emissions fee and the electric vehicle infrastructure fees — may be charged to a Vermont-resident veteran who received a discharge under other than dishonorable conditions for the registration of a motor vehicle the veteran acquired with financial assistance from the U.S. Department of Veterans Affairs, or of a replacement vehicle the veteran owns during the veteran’s lifetime. The application must be accompanied by a copy of an approved VA Form 21-4502. Note the scope: this covers the VA-grant vehicle (or its replacement) — it is not a blanket free-registration benefit for all disabled veterans.

Military & veteran license plates: Any veteran may apply for Vermont’s Veterans’ Plate (American flag with “V” designation). The DMV also issues Disabled Veteran, Purple Heart, Gold Star Family and Next-of-Kin, Former POW, Pearl Harbor Survivor, Air Medal, Bronze Star (including with Valor), U.S. Veteran, Vermont National Guard, VFW, and Vietnam Veterans of America plates, plus “In Theater” plates (World War II, Korean War, Vietnam War, Gulf War, Iraq War, Afghanistan) that require “boots on the ground” service in that theater. Every plate on the DMV’s military list requires a Vermont Certificate of Veteran Status (form VG-168) certified by the Vermont Office of Veterans Affairs; the Disabled Veteran plate also requires a medical evaluation (form VS-113) unless one is on file from the last four years. Plates can go on vehicles registered at the pleasure-car rate and trucks under 26,001 lbs., cannot be personalized, and some organization plates (VFW, VVA) carry a one-time fee — the Office of Veterans Affairs notes there is no additional charge for the standard Veterans plate or for adding a VETERAN designation to your Vermont driver’s license or ID. Details: Vermont DMV military license plates and the Office of Veterans Affairs programs page.

Recreation: Parks, Hunting & Fishing

Green Mountain Passport — lifetime free state park day use: Vermont residents who are honorably discharged veterans (or who are age 62 or older) qualify for the Green Mountain Passport: lifetime free day-use entry to Vermont State Parks. Buy it for $2.00 at your local town clerk’s office — see the Vermont State Parks fees & passes page and the Office of Veterans Affairs programs page. It covers day-use admission only, not camping fees.

Free hunting & fishing license — 60%+ disabled veterans: Under 10 V.S.A. § 4255(c)(4), a Vermont resident who is a veteran of the U.S. Armed Forces and who is, or ever has been, 60 percent disabled as a result of a service-connected disability may receive a free fishing, hunting, or combination hunting and fishing license that includes all big game licenses except a moose license. Fish & Wildlife issues it as a free permanent license on presentation of a VA certification — the Office of Veterans Affairs says to request a VA verification (summary of benefits) letter at 800-827-1000. Nonresident veterans from states with reciprocal privileges (presently New Hampshire and Maine, per Vermont Fish & Wildlife) can get a free one-year license.

Active duty: A Vermont resident serving on active duty — or performing, or under orders to perform, a homeland defense or state-side contingency operation for 120 or more consecutive days — may obtain a free hunting, fishing, or combination license and keep it until it expires, even after leaving the service. Nonresident members on active duty stationed at a military post or base in Vermont may buy licenses at the resident fee. Source: Vermont Fish & Wildlife licenses for military personnel.

Veteran moose-permit set-aside: If a moose season is held, 10 V.S.A. § 4254(i)(2) sets aside up to 10 percent of annual moose permits (no more than six) for Vermont-resident veterans who served on active duty and did not receive a dishonorable discharge; winners must hold a valid Vermont hunting or combination license to purchase the permit.

Education & Other Vermont Benefits

Vermont National Guard Tuition Benefit Program: Under 16 V.S.A. § 2857, an active member of the Vermont National Guard (resident or nonresident) who has completed basic training is entitled to a tuition benefit for up to full-time attendance: the in-state tuition rate at any Vermont State College institution or UVM, the UVM in-state rate at eligible Vermont private colleges (and at out-of-state Title IV institutions when the degree program is not available in Vermont), and the lower of standard tuition or the UVM in-state rate for certificate and other nondegree training. The benefit is paid on the member’s behalf by VSAC, subject to legislative appropriation, and members must first use available post-9/11 federal tuition benefits and military tuition assistance (with statutory exceptions). The commitment: two years of Vermont National Guard service for each full academic year of benefit, backed by an interest-free promissory note requiring pro-rata repayment if the service commitment is not completed; total benefits are capped at twice UVM’s full-time in-state tuition for an undergraduate degree.

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.

Official Vermont Veterans Resources

Frequently Asked Questions

Does Vermont tax military retirement pay?

Starting with the 2025 tax year, Vermont fully exempts military retirement pay for retirees with federal AGI of $125,000 or less, phasing out between $125,000 and $175,000.

Does Vermont offer property tax exemptions for disabled veterans?

Does Vermont have a state income tax?

Vermont has a state income tax. Starting with the 2025 tax year, Vermont fully exempts military retirement pay for retirees with federal AGI of $125,000 or less, phasing out between $125,000 and $175,000.

Does Vermont exempt disabled veterans from vehicle taxes or registration fees?

Vermont's exemptions are tied to VA vehicle assistance rather than a disability rating alone. Under 32 V.S.A. 8911(14), the motor vehicle purchase and use tax does not apply to a vehicle a veteran acquired with financial assistance from the U.S. Department of Veterans Affairs (or its replacement), documented with an approved VA Form 21-4502. Under 23 V.S.A. 378, a Vermont-resident veteran discharged under other than dishonorable conditions pays no registration fees (including the annual emissions fee and EV infrastructure fees) on that VA-assisted vehicle or a replacement owned during the veteran's lifetime.

Do disabled veterans get free hunting and fishing licenses in Vermont?

Yes. Under 10 V.S.A. 4255(c)(4), a Vermont resident veteran who is, or ever has been, 60 percent disabled from a service-connected disability may receive a free fishing, hunting, or combination license that includes all big game licenses except a moose license; Vermont Fish and Wildlife issues it as a free permanent license upon VA certification. Vermont residents on active duty, or on homeland defense or state-side contingency orders of 120 or more consecutive days, can also get a free hunting or fishing license.

Do veterans get free entry to Vermont State Parks?

Yes. Vermont residents who are honorably discharged veterans (or age 62 or older) can buy the Green Mountain Passport for $2.00 at their local town clerk's office. It provides lifetime free day-use entry to Vermont State Parks; camping fees are not included.