Vermont veteran disability benefits
State benefits that Vermont offers veterans with a service-connected disability, on top of your federal VA compensation. Each one links to its official source. This is educational information, not legal advice, and Vermont's agency makes the final eligibility call.
Disabled Veteran Property Tax Exemption (50%+)
Veterans with a 50%+ rating (or certain VA pension/military retirement) get a property tax exemption of at least $10,000, locally increasable up to $40,000.
32 V.S.A. 3802(11); minimum $10,000, towns may raise to $40,000. Primary residence.
Official source (verified 2026-06-08)Military Retirement Pay Exclusion (Act 71, 2025)
Vermont excludes military retirement pay from taxable income, subject to federal AGI limits.
Taxpayer must choose either the military-retirement or Social Security exclusion, not both. VA disability pay is not state-taxed.
Official source (verified 2026-06-08)Free Hunting or Fishing License (60%+)
Veterans with a 60%+ service-connected rating qualify for a free hunting or fishing license.
Requires a VA verification letter.
Official source (verified 2026-06-08)Vermont Veteran Tax Credit
Vermont resident veterans with AGI at or below $25,000 receive a $250 refundable income-tax credit.
Income-based, not a disability rating.
Official source (verified 2026-06-08)Most state benefits scale with your VA combined rating.
Estimate your combined rating for free, then see what you can claim to reach the thresholds above.
VA Disability Pro is an independent tool. It is not the VA, not a law firm, and not a VA-accredited representative. State benefits and eligibility change; always confirm with the official sources linked above.