An estimated 33,725 veterans live in Vermont, making up 6.3% of the state's population or the 34th-highest of the 56 U.S. states, inhabited territories and District of Columbia.
Vermont Military and Veteran Income Taxes
Military Retiree Income Tax
Starting in the 2025 tax year, military retirement pay is exempt for residents with an adjusted gross income (AGI) of $125,000 or less and partially exempt for retirees with an AGI between $125,000 and $175,000.
Veterans -- not just military retirees -- making less than $25,000 may receive a $250 refundable tax credit, and those earning between $25,000 and $30,000 may receive a partial credit.
Active-Duty Income Tax
Active-duty pay is tax free for residents stationed outside Vermont.
Vermont Veteran Property Taxes
Certain veterans may receive an exemption of at least $10,000 off the appraised value of their home, including:
- Veterans receiving Department of Veterans Affairs (VA) disability compensation of at least 50%
- Veterans receiving VA pension
- Veterans collecting military medical retirement pay
- Surviving spouses of veterans who had received the exemption
The exemption level varies from town to town.
Vermont Military and Veteran Education Benefits
Military/Veteran Education
Veterans of World War II, Korea and Vietnam who received an honorable discharge may receive a high school diploma.
Military Dependent Education
No state benefits.
Vermont Military and Veteran Employment Benefits
Veteran Hiring Preference
State preference: Veterans applying for state jobs receive 5 points added to their employment test score, and disabled veterans receive 10 points. You must have an honorable discharge. Eligible veterans may apply for jobs that normally are available only to current state employees.
Driving: Service members who have a military CDL and have driven a commercial vehicle in the past 12 months may have their skills test waived when applying for a CDL.
Military Spouse Employment
Surviving spouses may receive the same preference as the eligible veteran.
Vermont Veteran Housing and Veterans Homes
Veterans Homes
Vermont's one veterans home is in Bennington. Vermont veterans have priority admission, but veterans from other states may apply. An honorable discharge and at least 90 days of service are required.
Gold Star parents and spouses of qualified veterans also are eligible. Veterans without Medicare, Medicaid or private insurance must pay for their care.
Homeless Veterans
Four programs help homeless veterans reintegrate into the community, providing long-term assistance:
- Canal Street Veteran Housing in Winooski
- The Dodge House in Rutland
- Veterans Inc. in Bradford
- The Veterans Place in Northfield
Adapted Housing
No state benefits.
Vermont Veteran Financial Assistance
Veterans in need may receive a one-time payment of up to $500 from the Vermont Veterans Assistance Fund.
Vermont Veteran Legal Assistance
No state-funded legal services.
Vermont Military and Veteran Recreation Benefits
Hunting/Fishing
A resident veteran with at least a 60% service-connected disability rating may receive a free combination hunting and fishing license that includes all big-game licenses.
A non-resident veteran who lives in a state that provides reciprocal privilege for Vermont residents, and who would qualify for a free license under the disabled veteran provision above if they were a Vermont resident, can get a free one-year fishing, hunting or combination hunting and fishing license.
Parks/Camping
Vermont veterans may receive the Green Mountain Passport for $2 for free day-use access to state parks and historic sites and Burlington city parks.
Vermont Veteran Transportation Benefits
No state-funded transportation benefit. Disabled American Veterans (DAV) offers van rides to VA medical centers in many states and may be available in the states without a state-funded transportation benefit.
Vermont Veteran Burial Benefits
Veterans Cemeteries
Vermont's one veterans cemetery is in Randolph Center. Veterans, spouses and unmarried minor children are eligible for burial, as are National Guard and reserve members with 20 years of service.
There is no cost for the veteran's burial and a small cost for that of dependents.
More Information
Visit the Vermont Office of Veterans Affairs website for more information on any of these programs.
-- Additional reporting by Jim Absher.
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