Vermont Veteran Benefits: Complete Guide for 2026
Vermont provides 12 documented state-level benefits for disabled veterans across 8 categories. Notable programs include a homestead property tax exemption worth up to $10,000, income tax relief (full retirement exemption (agi<$125k) + $250 vet tax credit), 2 vehicle-related benefits including Vehicle Tax & Fee Exemptions (VA-Modified Vehicles). VT also provides hunting and fishing license benefits, additional benefits, small business benefits, state parks and recreation benefits. Below is a detailed breakdown of every verified benefit available to disabled veterans in Vermont as of 2026.
Key Takeaways for VT Veterans
- Vermont offers 12 documented state-specific veteran benefits as of 2026
- Property Tax Exemption — $10,000-$40,000 (50%+ Disabled): worth up to $10,000/year
- Military Retirement Pay — State Income Tax Exempt (AGI < $125K): full retirement exemption (agi<$125k) + $250 vet tax credit
- Vehicle benefits: Vehicle Tax & Fee Exemptions (VA-Modified Vehicles), Disabled Veteran License Plates & Registration Fee Exemption
- Free Hunting or Fishing License (60%+)
- Employment: State Employment Preference Points (5 or 10 Points)
12
State Benefits
8
Categories
50+
Federal Benefits
415+
Discounts
See exactly what Vermont benefits add up to for you.
Get StartedVermont State-Specific Benefits
Vermont Employment Benefits (1)
State Employment Preference Points (5 or 10 Points)
Vermont grants 5 preference points on state classified-position examinations for veterans and 10 points for disabled veterans. This preference helps qualified veterans rank higher on hiring lists for Vermont state government jobs.
Vermont Hunting & Fishing (1)
Free Hunting or Fishing License (60%+)
Vermont veterans with a 60%+ service-connected disability are eligible for a free hunting or fishing license. Requires a VA summary of benefits letter for verification.
Vermont Income Tax Benefits (1)
Military Retirement Pay — State Income Tax Exempt (AGI < $125K)
Vermont exempts military retirement and survivor benefit income for taxpayers with AGI of $125,000 or less. Phases out between $125K-$175K. A $250 refundable veteran tax credit is also available for veterans with AGI of $25,000 or less.
Vermont Other Benefits (2)
Vermont Other Veteran Benefits
Employment preference
Vermont Income Tax Benefits
Military pay exempt
Vermont Property Tax Exemptions (2)
Vermont Property Tax Exemption
$10,000+ exemption on primary residence
Property Tax Exemption — $10,000-$40,000 (50%+ Disabled)
Vermont veterans with a 50%+ disability rating, non-service-connected pension, or medical military retirement may receive a property tax exemption on their primary residence. State mandates $10,000 minimum; towns may vote to increase up to $40,000. Apply to VT Office of Veterans Affairs by May 1.
Vermont Small Business Benefits (1)
Vermont Veteran Business Resources
Vermont has no statewide procurement preference for veteran-owned businesses; veteran inclusion applies mainly on federally funded municipal contracts. Register on VTBuys and monitor Buildings & General Services bids; use the Vermont SBDC and APEX Accelerator for contracting help.
Vermont State Parks & Recreation (2)
Green Mountain Passport — $2 Lifetime State Parks Pass
The Green Mountain Passport provides lifetime day-entry access to all Vermont state parks and historic sites for a one-time fee of $2. Available to Vermont residents who are veterans with a permanent disability. Covers day-use fees only; camping fees still apply at reduced rates.
Free Lifetime State Park Day-Entry Pass
All honorably discharged Vermont veterans are eligible for a lifetime free day-entry pass to Vermont State Parks via the Green Mountain Passport, available through local town clerks.
Vermont Vehicle Benefits (2)
Vehicle Tax & Fee Exemptions (VA-Modified Vehicles)
Disabled veterans who own a vehicle modified to accommodate their disability with VA funding are exempt from vehicle sales tax, registration fees, and license fees. This benefit is specifically for VA-funded vehicle modifications.
Disabled Veteran License Plates & Registration Fee Exemption
Vermont issues special Disabled Veteran license plates to veterans with a VA-rated service-connected disability. Veterans rated 100% permanently and totally disabled are exempt from the vehicle registration fee. Plates feature the DV designation.
How Vermont Benefits Stack With Federal VA Compensation
Vermont state benefits are separate from and stack on top of your federal VA disability compensation. The federal compensation rate table below shows what you receive from the VA — your VT state benefits add to that total. For a 100%-rated veteran in VT, this means federal compensation plus the Property Tax Exemption — $10,000-$40,000 (50%+ Disabled) (up to $10,000/year) and 11 other state benefits — all at no additional cost. Some VT benefits are available to all veterans regardless of disability percentage, while others require a rating of up to 60%. To see your personalized combined federal-plus-Vermont benefits package, create a free account.
2026 Federal Compensation Rates (Veteran Alone)
These federal rates apply to all Vermont veterans with service-connected disabilities. Vermont state benefits are received in addition to these amounts.
Compare Property Tax Exemptions
See how Vermont's property tax exemptions compare to other veteran-friendly states:
Frequently Asked Questions About Vermont Veteran Benefits
What veteran benefits does Vermont offer in 2026?
Vermont offers 12 state-specific veteran benefits across 8 categories, such as Property Tax Exemption — $10,000-$40,000 (50%+ Disabled), Military Retirement Pay — State Income Tax Exempt (AGI < $125K), Disabled Veteran License Plates & Registration Fee Exemption. These cover employment benefits, hunting and fishing license benefits, income tax benefits, additional benefits, and more — all in addition to federal VA disability compensation and healthcare.
Does Vermont offer property tax exemptions for disabled veterans?
Yes. Vermont offers 2 property tax benefits for disabled veterans. Some exemptions are available at any disability rating. The Property Tax Exemption — $10,000-$40,000 (50%+ Disabled) can be worth up to $10,000 per year depending on assessed home value. Contact your county assessor for filing instructions.
Is military retirement pay taxable in Vermont?
Federal VA disability compensation is tax-free nationwide. Beyond that, Vermont offers 1 additional income tax benefit: the Military Retirement Pay — State Income Tax Exempt (AGI < $125K). These may further reduce your VT state tax burden on military retirement pay or veteran-related income.
Does Vermont offer vehicle-related benefits for disabled veterans?
Yes. Vermont provides 2 vehicle-related benefits: Vehicle Tax & Fee Exemptions (VA-Modified Vehicles), Disabled Veteran License Plates & Registration Fee Exemption. Eligibility varies by disability rating and benefit type.
How do I apply for Vermont veteran benefits?
Most Vermont benefits require proof of your VA disability rating, available through VA.gov or your eBenefits account. Contact your local VT Department of Veterans Affairs or county veterans service office for application help.
Can I receive both Vermont state and federal VA benefits at the same time?
Absolutely. Vermont state veteran benefits are separate from and stack on top of federal VA disability compensation, healthcare, and other federal programs. For example, a 100%-rated veteran in VT receives federal compensation plus the Property Tax Exemption — $10,000-$40,000 (50%+ Disabled) (up to $10,000/year) and all other eligible state programs.
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Benefits by VA Disability Rating
Your disability rating determines which federal and Vermont state benefits you qualify for: