Vermont VA Disability Benefits & Resources for Veterans

In Vermont, veterans apply for the property tax exemption through the state Office of Veterans Affairs, not their town. Each town sets the amount somewhere between the $10,000 state minimum and $40,000. Starting in tax year 2025, Act 71 also exempts military retirement pay for most filers and adds a $250 credit for lower-income veterans.

State benefit details verified against official state sources on September 27, 2026.

Key Vermont Benefits at a Glance

Property Tax Exemption (32 V.S.A. § 3802(11))

Who qualifies, according to the Vermont Office of Veterans Affairs:

• Veterans receiving VA disability compensation at 50% or higher
• Veterans receiving VA non-service-connected (Improved) Pension
• Veterans receiving permanent military retirement pay for a medical retirement
• Surviving spouses of veterans who had received the exemption

Amount: State law requires at least $10,000 off the appraised value. Towns can raise it to $40,000 by voter approval. For example, a $200,000 home in a town with a $20,000 exemption is taxed as a $180,000 home. The exemption applies only to a home the veteran or survivor owns and lives in as a primary residence. Renters can’t pass it to a landlord. If you want your town to raise the exemption, use your town’s process to put it on the local ballot.

How to apply:

1. Ask VA for a benefits letter confirming your eligibility. The Office recommends doing this by April 1, by phone or online.
2. Send the letter and the current-year application to the Vermont Office of Veterans Affairs, 118 State Street, Montpelier, VT 05620-4401 (phone 802-828-3379 or 888-666-9844 toll-free in Vermont).
3. The Office must receive it before May 1. Most veterans reapply every year. Veterans rated permanently and totally disabled file once, and file again only if they move to a home in a different town.

Vermont Income Taxes

• Military retirement (Act 71): Starting with tax year 2025, all military retirement and survivor benefit income is exempt for any filing status if adjusted gross income is $125,000 or less. The exempt amount shrinks between $125,000 and $175,000, and nothing is exempt at $175,000 or more. If you also get Social Security, choose either the Social Security exemption or the military retirement exemption. You can’t take both.
• Vermont Veteran Tax Credit: Starting with tax year 2025, veterans with adjusted gross income of $25,000 or less can claim a $250 refundable credit. The credit shrinks between $25,000 and $30,000. You need a discharge or separation record showing active-duty service.
• VA disability compensation: VA pays disability compensation tax-free.

Vehicles, Licenses, and Hunting and Fishing

• Registration and sales tax: Only veterans whose vehicle was modified for their disability with VA paying for it are exempt from vehicle sales tax, registration fees, and license fees. The Vermont Office of Veterans Affairs says all other veterans pay standard fees, including veterans rated 100%.
• Plates and license designation: The DMV offers veterans plates and a veteran status label on your license or non-driver ID at no additional charge. The Vermont Office of Veterans Affairs verifies your DD214. Its office is next door to the Montpelier DMV. Purple Heart, Former Prisoner of War, and Pearl Harbor Survivor plates are handled directly by the DMV.
• Hunting and fishing: Resident veterans who are, or ever have been, 60% disabled from a service-connected disability get a free permanent fishing, hunting, or combination license. It includes all big game licenses except moose. You need a VA letter confirming the rating. For eligibility questions, call Vermont Fish and Wildlife at 802-828-1190. Disabled veterans from New Hampshire and Maine can get a free one-year license through reciprocity.

Education Benefits

The Vermont Office of Veterans Affairs notes that most veteran education benefits in Vermont come from VA through the GI Bill. Vermont National Guard members have their own state tuition assistance programs. The Vermont Student Assistance Corporation (VSAC) offers grants, loans, and a few private scholarships for veterans and their families. Before you enroll, ask the school’s VA certifying official whether your program is GI Bill-approved. For help with trade school programs, call the Office’s education consultant at 802-828-1082.

State Veterans Home

The Vermont Veterans’ Home is at 325 North Street, Bennington. According to the Office of Veterans Affairs, it has 177 beds and offers skilled nursing and other care to veterans, their spouses, and Gold Star parents. It accepts Medicare, Medicaid, and private insurance, and staff help residents use whatever coverage they qualify for.

State Employment Preference

Under 20 V.S.A. § 1543 and 3 V.S.A. § 310(f), veterans get preference points for state jobs. In general, you qualify if you served at least 90 days and were separated under honorable conditions. Veterans with a service-connected disability, spouses of totally disabled service-connected veterans, and unmarried widows or widowers of veterans can claim more points. Preference-eligible veterans can also apply for “State promotional only” jobs, which are normally open only to current state employees.

VA Regional Office and Medical Centers

White River Junction VA Regional Benefit Office: 163 Veterans Drive, White River Junction, VT 05001. The VA benefits hotline is 800-827-1000.

VA medical center and clinics in Vermont (VA White River Junction Health Care):

• White River Junction VA Medical Center, White River Junction
• Bennington VA Clinic, Bennington
• Brattleboro VA Clinic, Brattleboro
• Burlington Lakeside VA Clinic, Burlington
• Newport VA Clinic, Newport
• Rutland VA Clinic, Rutland

The same health care system also runs clinics in Keene and Littleton, New Hampshire.

Filing a Federal VA Claim

The federal VA claim process works the same way in every state. See How to File a VA Claim, Check Your Claim Status, and 2026 VA Disability Rates. For free help in Vermont, call the State of Vermont Veteran Service Officer Program at 888-666-9844. Its officers travel statewide. The American Legion (802-296-5166), DAV (802-296-5167), and VFW (802-296-5168) also have service officers in White River Junction.

Crisis Support

Veterans Crisis Line: dial 988 then press 1, or text 838255.