Vermont Disabled Veteran Benefits

If you are a disabled veteran living in Vermont, or thinking about moving here, this page puts every state-level benefit tied to your VA (U.S. Department of Veterans Affairs) disability rating in one place: the property tax exemption, state income tax breaks, vehicle and plate perks, parks and hunting/fishing, education for you and your family, the state veterans' home, hiring preference, and burial. Every dollar figure, deadline, and form name below comes from an official Vermont source, and I link that source so you can check it yourself. Where the state's own pages leave a number unsettled, I tell you to confirm it rather than guess.

Plain-language promise: I keep the how-to steps here so you can act. The only thing I route out is filing or increasing a VA claim, because that is free claims work best handled by an accredited Veterans Service Officer (VSO), never a paid company.

New for tax year 2025 (first claimed on returns filed in 2026) — Vermont now exempts military retirement pay and adds a veteran tax credit. A 2025 state law, signed June 25, 2025, created two income-tax breaks: a tiered exemption for military retirement and Survivor Benefit Plan income, and a refundable Vermont Veteran Tax Credit of up to $250. Both take effect for the 2025 tax year and are first claimed when you file in 2026. Details and income limits are in the State income tax section below.

Sources the 2025 law · Dept. of Taxes guidance

Property tax exemption

What it is: Vermont gives qualifying disabled veterans (and their survivors) a reduction in the assessed value of their home before property tax is calculated. It is run jointly by the Vermont Office of Veterans Affairs (OVA) and the Vermont Department of Taxes. It is not automatic — you have to apply for it, and how often you re-file depends on your qualifying basis (spelled out below).

Important — there is no full (100%) property-tax exemption for disabled veterans in Vermont. Unlike some states, Vermont's benefit is a partial reduction, not a wipe-out of the whole tax bill. State law sets a minimum $10,000 exemption off the appraised value of your home; a town may vote to raise its local exemption up to $40,000, so the amount varies town by town (confirm your town's adopted amount with your local listers/assessor). If a page or salesperson tells you Vermont has a 100% veteran property-tax exemption, that is wrong — the routes below are the only ones the law provides.

Every way to qualify (you need to meet just one of these):

• Route 1 — VA disability compensation at 50% or higher. You receive VA service-connected disability compensation at a combined rating of 50% or more. (This is the route that also covers a 100% rating, Permanent & Total (P&T), and Individual Unemployability (IU) paid at the 100% rate — they all clear the 50% floor.)
• Route 2 — VA Non-Service-Connected (Improved) Pension. You receive the VA's needs-based Veterans Pension for a non-service-connected disability. This route does not depend on a service-connected rating percentage.
• Route 3 — permanent medical military retirement. You receive military retirement pay for a permanent medical military retirement.
• Route 4 — unremarried surviving spouse (and minor children). The unremarried widow or widower of a veteran who qualified is entitled to the exemption, and the law is explicit that they keep it whether or not the survivor personally receives VA compensation or pension. Minor children of a qualified veteran are also covered.

Homestead / primary-residence requirement: the exemption applies only to a home owned by the veteran (or survivor) and used as their primary residence. It cannot be applied to a rental you occupy as a tenant.

1. Get your VA Summary of Benefits Letter (download it from your VA.gov account, or call the VA at 1-800-827-1000) showing your 50%+ rating, pension, or medical-retirement status.
2. Download and complete the OVA application: Property Tax Exemption — Application for Eligibility (fillable PDF). Always pull the current-year form from the OVA property-tax page in case it is updated.
3. Submit the application together with your Summary of Benefits Letter to the Vermont Office of Veterans Affairs, 118 State Street, Montpelier, VT 05620-4401, by May 1. Miss May 1 and you lose the exemption for that year.
4. Know your re-filing rule (a lot of veterans are told this wrong). If your exemption is based on a permanent disability — for example a 100% permanent rating, Permanent & Total (P&T), or a permanent medical military retirement — you file with OVA only once, before May 1 of the first year, and the exemption then stays on the town grand list until title to the home is transferred. You do not have to re-apply every year. If your qualifying basis is not permanent (a rating or pension that could change), the law requires you to file proof that the compensation or pension is still being paid before May 1 each year. If you are unsure how OVA has you classified, call OVA to confirm.
5. Ask your town listers/assessor what dollar amount your town has adopted (anywhere from the $10,000 floor to the $40,000 town-option ceiling), and check your next tax bill for the exemption line to confirm it posted.

Sources Vermont OVA · Dept. of Taxes · fact sheet · the statute

State income tax

What it is: Vermont does not tax your VA disability compensation, and as of the 2025 tax year it exempts military retirement pay (up to income limits) and adds a small refundable veteran credit.

• VA disability compensation is federally tax-free, and Vermont starts from your federal income — so it is not taxed by Vermont either. (General federal rule; confirm your specific situation with a tax preparer.)
• Military retirement & Survivor Benefit Plan (SBP) exemption (effective tax year 2025): full exemption of military retirement and SBP income if your federal Adjusted Gross Income (AGI) is $125,000 or less (any filing status); a partial, phased-down exemption for AGI between $125,000 and $175,000; and no exemption once AGI is $175,000 or more. Note: Vermont lets you claim only one of its retirement-income exemptions (Social Security, Military Retirement, Civil Service Retirement System, or Other Retirement System) even if more than one could apply — so if you also get Social Security, you pick whichever exemption helps most. Confirm the current-year mechanics before filing.
• Vermont Veteran Tax Credit (effective tax year 2025): a refundable credit for a Vermont resident or part-year resident who has a discharge record or other proof of separation from the uniformed services. It is $250 at AGI of $25,000 or less, phases down for AGI between $25,000 and $30,000, and is gone at AGI of $30,000 or more. Confirm the exact phase-out and which line to use each filing season.

1. Confirm your VA disability compensation never shows up as taxable income on your Vermont return (it should not appear on your federal return either, and Vermont starts from your federal figures).
2. If you receive military retirement pay or SBP, claim the exemption using the worksheet in the instructions for Schedule IN-112 (Vermont Tax Adjustments and Credits) and file it with your Form IN-111 (Vermont Income Tax Return). Get the current-year forms and instructions before you file.
3. If you qualify for the $250 Veteran Tax Credit, claim it on the same return; verify the exact schedule/line for the filing year, since form layouts change.
4. If a prior return taxed your VA compensation or military retirement in error, fix it with a tax preparer familiar with military filings or by contacting the Vermont Dept. of Taxes — this is a filing mechanic, not claims work.

Sources Dept. of Taxes · the 2025 law

Vehicles, plates & tolls

What it is: the Vermont Department of Motor Vehicles (DMV) waives registration and license fees for veterans who bought a vehicle with VA financial assistance, and issues a Disabled Veteran plate. Vermont has no state toll roads, so there is no toll benefit to claim.

• Registration fee waiver: no registration fee is charged to an honorably discharged Vermont-resident veteran for a motor vehicle acquired with financial assistance from the VA (the VA automobile grant), or for a replacement vehicle obtained later during the veteran's lifetime, when the application includes a copy of the approved VA Form 21-4502 (Application for Automobile or Other Conveyance and Adaptive Equipment). VA Form 21-4502 — VA.gov.
• Driver's license fee waiver: likewise, no fee is charged for a driver's license for an honorably discharged veteran who acquired a vehicle with that VA financial assistance and is otherwise eligible to be licensed, again with the approved VA Form 21-4502.
• Disabled Veteran (DV) license plate: Vermont issues a Disabled Veteran plate. You provide the required veteran documentation plus a completed Vermont DMV Universal Medical Evaluation/Progress Report (Form VS-113, PDF), unless a qualifying medical has already been filed within the last four years. Proof of veteran status can be established with the Vermont Certificate of Veteran Status (Form VG-168, PDF). Apply at any local Vermont DMV office or through the Vermont Office of Veterans Affairs.

1. If you received the VA automobile grant, locate your approved VA Form 21-4502 — it is what unlocks the registration and license fee waivers.
2. Visit a Vermont DMV office with your VA Form 21-4502 and your title/registration paperwork, and ask for the fee-waived registration (and, if you want it, the Disabled Veteran plate).
3. For the DV plate, bring the completed Universal Medical Evaluation/Progress Report (Form VS-113) and your proof of veteran status (Form VG-168). Confirm at the counter that the fees are waived before you pay.

Sources Vermont DMV · DMV license plates

Recreation: parks, hunting & fishing

What it is: a nearly free lifetime state-parks pass for Vermont veterans, and a free hunting/fishing license for veterans rated 60% or more.

• Green Mountain Passport (state parks & historic sites): any Vermont resident who is a veteran of the uniformed services (any age) can buy a one-time $2, lifetime Green Mountain Passport, which gives free day-use admission to Vermont State Parks and State Historic Sites. Overnight camping and other add-on fees are not included. It is issued only by your local Town Clerk, not by the parks themselves. (Vermont residents 62+ qualify under the same program.)
• Free hunting / fishing / combination license (60%+ disabled): a Vermont resident veteran who is, or ever has been, 60% or more disabled as a result of a service-connected disability may receive a free fishing, hunting, or combination license — and it includes all big-game licenses except a moose license — on presenting a VA certificate/Summary of Benefits Letter. It is issued through the Vermont Fish & Wildlife Department. To claim it, complete the Disabled Veteran Free License Application (PDF).

1. For the Green Mountain Passport, go to your Town Clerk's office with proof of Vermont residency and veteran status, pay the one-time $2, and keep the card — it is good for life.
2. For the free hunting/fishing license, get your VA Summary of Benefits Letter showing a service-connected rating of 60% or more (current or ever), then complete the Disabled Veteran Free License Application and submit it to Vermont Fish & Wildlife per the instructions on the program page.

Sources Vermont State Parks · Vermont OVA · Fish & Wildlife · the statute

Education for you & your family

What it is: in-state tuition for veterans using GI Bill benefits, a National Guard tuition program, and a scholarship for the families of service members who died on duty. Vermont's state education agency for this is the Vermont Student Assistance Corporation (VSAC).

• In-state tuition for GI Bill users: under federal law, a public college must charge the in-state tuition rate to a veteran (and certain dependents) using GI Bill benefits, regardless of how long you have lived in the state. This applies at Vermont's public institutions — the University of Vermont (UVM), Vermont State University, and the Community College of Vermont.
• Vermont National Guard Tuition Benefit Program: for active Vermont National Guard members in good standing (not the general disabled-veteran population), this covers up to full tuition at Vermont State University or UVM (or up to the UVM rate elsewhere), delivered as an interest-free loan that is forgiven with continued service.
• Armed Services Scholarship (for dependents): a VSAC scholarship that pays tuition at a public Vermont college for a child, stepchild, or spouse of a service member who died on active or inactive duty (Vermont National Guard, U.S. active reserve, or active armed forces, within the periods the program sets). Note: as written this benefit keys on a service member's death on duty, not on a living veteran's disability rating — if you are a living, permanently and totally disabled veteran, ask VSAC directly whether any parallel dependent benefit exists.
• Federal fallback for your family — Survivors' and Dependents' Educational Assistance (DEA, Chapter 35): if you are rated permanently and totally (P&T) disabled from a service-connected condition, your spouse and children may qualify for this federal VA education benefit (this is not a Vermont program).

1. If you are the veteran using the GI Bill, tell your school's veteran/certifying official you want the in-state tuition rate.
2. If you are an active Vermont Guard member, apply for the National Guard Tuition Benefit through VSAC and the Guard.
3. For a dependent whose service-member parent/spouse died on duty, apply for the Armed Services Scholarship through VSAC (1-800-642-3177).
4. If you are P&T, have your spouse/children check federal DEA (Chapter 35) eligibility at VA.gov.

Sources Vermont OVA · in-state tuition (VA.gov) · VSAC Guard program · the statute · VSAC scholarship · DEA Chapter 35 (VA.gov)

State Veterans' Homes & long-term care

What it is: Vermont operates one state veterans' home — the Vermont Veterans' Home (VVH) in Bennington — providing skilled nursing, rehabilitation, and memory care for veterans, their spouses, and Gold Star parents.

• Who can be admitted: veterans who served at least 90 days in the U.S. Armed Forces and were discharged under honorable conditions; their spouses; and Gold Star parents. Vermont veterans have admission priority.
• Cost: the Home accepts Medicare, Medicaid, VA per-diem payments, and private insurance; for higher-rated service-connected veterans the VA often covers much or all of the cost of nursing care. Confirm your specific situation with the VVH admissions office before you rely on any figure.

1. Review the VVH eligibility page and confirm you meet the service, discharge, and care-need requirements.
2. Call the VVH admissions office in Bennington to request the application and physician's-statement packet, and ask what your out-of-pocket cost would be given your VA rating and insurance.
3. Have your discharge document (DD Form 214) and VA rating letter ready to submit with the application.

Sources Vermont Veterans' Home · eligibility · Vermont OVA

State hiring & civil service

What it is: Vermont adds points to the scores of eligible veterans on point-based state-job examinations, with extra points for service-connected disabled veterans and certain family members.

• Base veteran preference — 5 points: a veteran who meets the requirements for an open competitive, point-based examination and gets a passing score has 5 points added to that rating.
• Enhanced preference — 10 points: a service-connected disabled veteran, a veteran's unremarried widow or widower, and the spouse of a totally service-connected disabled veteran who passes the examination has 10 points added instead.

1. When you apply for a Vermont state job that uses a point-based exam, claim veteran status and, if you have a service-connected disability, claim the enhanced (10-point) preference.
2. Have your DD Form 214 and VA rating letter ready to document eligibility, and ask Vermont Recruitment Services if you have questions about how the points are applied to a specific posting.

Sources Dept. of Human Resources · Vermont Careers · the statute

Other: burial & military honors

What it is: a state veterans' cemetery, a guarantee of burial for a destitute veteran, and military funeral honors.

• Vermont Veterans Memorial Cemetery (Randolph Center): open to veterans who met a minimum active-duty service requirement and were discharged under conditions other than dishonorable, plus eligible spouses and dependents. There is no cost to bury the veteran in the government-marker sections; there is an opening/closing charge for a spouse or dependent (confirm the current amount with the cemetery).
• Burial for a destitute veteran: the State of Vermont guarantees an appropriate burial for a veteran who dies destitute — contact the local Economic Services Division office (1-800-479-6151).
• Military funeral honors: the Vermont National Guard honor guard performs military honors (flag folding and presentation, Taps) on request.

1. For burial at the Vermont Veterans Memorial Cemetery, contact the cemetery through the OVA cemetery page and have the veteran's DD Form 214 ready to establish eligibility.
2. For a destitute-veteran burial or to arrange military honors, call the Vermont Office of Veterans Affairs (below), which coordinates both.

Sources Vermont OVA · the cemetery

Who to call

The Vermont Office of Veterans Affairs (OVA) is your single front door for the state programs above, and it can connect you with a free accredited VSO to help with a VA claim, a rating, or applying for any of these benefits.

• Website: veterans.vermont.gov
• Address: 118 State Street, Montpelier, VT 05620-4401
• Phone: (802) 828-3379 · In-state toll-free: 1-888-666-9844
• Property-tax questions: your local town listers/assessor (they set the town's adopted amount) and the Vermont Dept. of Taxes

1. Anything tied to your actual VA rating — filing a new claim, appealing, or arguing for a higher percentage — goes to a free accredited VSO. Call the Vermont OVA at 1-888-666-9844 or find a VSO at VA.gov. Never pay a private company for basic claims help.
2. State-program questions (property tax, plates, parks, education, the veterans' home, hiring, burial) go to the specific office linked in that section, or start at veterans.vermont.gov.

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