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Vermont — Veteran Benefits

Complete reference covering 58 benefit categories across 14 service tiers. Verify current eligibility with your County VSO before filing.

At a Glance — What Unlocks by Status / Rating

Veteran benefits unlocked at each service status and disability rating in Vermont
Status / Rating Headline Benefits Unlocked
Active Duty Military pay earned outside VT fully exempt from VT income tax; combat-zone pay exempt; DL extension up to 4 years; CDL skills-test waiver; free hunting/fishing license (120+ consecutive days activation); professional license fee waiver; in-state tuition at VT public colleges
Guard / Reserve Up to $2,000 VT military pay exemption (AGI < $50K); National Guard Tuition Benefit Program (interest-free forgivable loan, up to full tuition); free hunting/fishing (120+ days activated); employment job-restoration and 15-day training-leave protection
Military Retiree Military retirement pay fully exempt if AGI ≤ $125,000; partial exemption phased out to $175,000 (Act 71, TY2025); SBP annuity same mirrored exemption; Veteran Tax Credit ($250 if AGI ≤ $25,000)
Veteran (honorable, no rating) $250 refundable Veteran Tax Credit (AGI ≤ $25,000, phased out to $30,000); Green Mountain Passport ($2 lifetime day-use parks pass); VETERAN designation on DL/ID (no fee); 5-pt state hiring preference; in-state tuition (GI Bill users); vital records fee waiver; Armed Services Scholarship (survivors of killed members); state veterans cemetery
0% SC Same as no-rating tier; no additional rating-triggered benefits
10–20% Same as no-rating tier; property tax exemption not yet triggered (requires 50%+ or VA pension/DIC)
30–40% Same as above; still below property-tax threshold
50–60% **Property tax exemption begins** — minimum $10,000 off appraised value (both grand lists); towns may increase municipal-list portion to $40,000; all prior tiers
70–90% Property tax exemption ($10K–$40K); 10-pt hiring preference if disability is service-connected; free permanent hunting/fishing/combo license (threshold is 60%+ SC, so 70%+ qualifies); all prior
100% schedular All prior; vehicle registration/sales-tax/license-fee waiver on VA-financed or VA-adapted vehicles; Vermont Veterans' Home priority admission
TDIU Same benefits as 100% schedular for most purposes; property tax via VA pension ("pension for disability" qualifies under 32 VSA 3802(11))
P&T Same as TDIU/100%; property tax re-application only required first year (P&T = permanent; exemption stays until title transfers); surviving spouse retains exemption upon death
SMC (Housebound/A&A) All prior; Vermont Veterans' Home priority; emergency financial assistance ($500 one-time); Veterans Memorial Cemetery
Surviving spouse / dependents Property tax exemption (unremarried spouse, same $10K–$40K, no compensation required); Armed Services Scholarship (full public-college tuition for qualifying survivors); state veterans cemetery (nominal fee for non-veteran family members)

Taxes

1. Property Tax — Primary Residence

Vermont resident veteran (or surviving unremarried spouse/minor child of a qualifying veteran) who owns and occupies the property as primary residence AND meets one of the following compensation tests: - VA disability compensation at **50% or greater** service-connected rating - VA Non-Service-Connected Pension (Improved Pension) - VA Dependency and Indemnity Compensation (DIC) - Permanent military retirement pay for a medical military retirement
Verify locally: **Amounts:** | Grand list | Minimum | Town may increase to | |---|---|---| | Municipal grand list | $10,000 off appraised value | $40,000 (by majority town vote) | | Education grand list | $10,000 off appraised value | $10,000 (state sets this; no local increase) | Contact your town assessor to confirm the local municipal-list amount — it varies by town. gov/property-tax-exemption **Action item:** Contact your town assessor to confirm the local municipal-list exemption amount ($10K–$40K).

Authority: 32 V.S.A. § 3802(11); veterans.vermont.gov/property-tax-exemption

2. Property Tax — Vehicle / Personal Property

Vermont does not levy a statewide or municipal vehicle personal-property tax. There is nothing to exempt.

3. Vehicle Sales / Use Tax

Veterans who: - Received a motor vehicle with VA financial assistance (VA Form 21-4502 required), OR - Are replacing a vehicle previously acquired with VA financial assistance, OR - Received a specially adapted vehicle (altered controls for service-connected disability, paid for by VA)

Authority: 32 V.S.A. Chapter 219; dmv.vermont.gov/tax-title/vehicle-taxation/exemptions

4. State Income Tax — Active Duty Military Pay

**Full exemption:** Vermont resident serving **outside Vermont on full-time active duty** — all military pay earned during that service is exempt from Vermont income tax.

Authority: 32 V.S.A. § 5823; tax.vermont.gov/military-personnel

5. State Income Tax — Military Retirement Pay

**New law — Act 71 (S.51), signed June 25, 2025; effective tax year 2025 (filed in 2026):**

Authority: S.51 / Act 71 (2025); tax.vermont.gov/military-personnel

6. State Income Tax — SBP Annuity

**Same Act 71 (TY2025) exemption applies to survivor annuities:**

Authority: S.51 / Act 71 (2025); ljfo.vermont.gov (S.51 as passed)

7. State Income Tax — General

**VA disability compensation:** Fully exempt from federal income tax by federal law; Vermont conforms — not taxable regardless of rating or amount.
Verify locally: 51, TY2025, filed in 2026):** - AGI $25,000 or less: **$250 refundable credit** - AGI $25,001 – $29,999: $250 minus $5 per $100 of AGI over $25,000 (phase-out) - AGI $30,000 or more: ineligible - Eligibility: Vermont resident or part-year resident with DD-214 or separation record verifying active-duty service **Combat-zone filing extensions:** 180-day automatic extension for Vermont income tax returns.

Authority: S.51 / Act 71 (2025); 32 V.S.A. § 5823

8. Sales Tax Exemption

Vermont does not issue a veteran sales tax exemption card for general retail purchases. Vermont's 6% sales tax has no broad veteran exemption. The only veteran-specific sales/use tax benefit is the vehicle Purchase and Use Tax exemption for VA-financed or VA-adapted vehicles (see §3).

9. Other State Tax Breaks

**Property tax — combat-zone hardship:** Town may waive property tax penalties for deployed service members for up to 180 days.

Vehicle, Travel & ID

10. Vehicle Registration Fee

**Waiver — VA-financed or VA-adapted vehicle only:** No registration fees for an honorably discharged Vermont resident veteran who acquired a motor vehicle with VA financial assistance (VA Form 21-4502), or whose vehicle was modified for a service-connected disability and paid for by VA.
Verify locally: ⚠️ verify locally when filing.

Authority: dmv.vermont.gov/military; 23 V.S.A. (vehicle statutes)

11. Disabled Veteran License Plates

Service-connected disabled veteran; must submit Universal Medical Evaluation/Progress Report (VT DMV form) plus OVA certification.

Authority: dmv.vermont.gov/military/military-license-plates

12. Other Veteran / Military Specialty Plates

Vermont offers **13 specialty military/veteran plate designs**, including: - U.S. Veteran plate - Purple Heart plate - Gold Star Family plate - Combat theater plates (OEF, OIF, and others — 6 designs) - National Guard plate and Reserve plate

Authority: dmv.vermont.gov/military/military-license-plates

13. Toll Road / Bridge Exemption

Vermont has no statewide electronic toll system and very few toll facilities. No veteran toll exemption program exists because the toll infrastructure is essentially absent.

14. Public Transit Discount

No statewide veteran free-transit program identified. Vermont's public transit (Green Mountain Transit in Chittenden County, rural transit systems) is limited. ⚠️ verify locally with your regional transit authority for any local veteran discount.

15. Disabled Parking Privileges

Any person with an ambulatory disability or blindness, including disabled veterans; requires Universal Medical Evaluation/Progress Report signed by a licensed physician, PA, or APRN.

Authority: dmv.vermont.gov/registrations/license-plates/disabled-plates-placards

16. Driver License / State ID Fee

**VETERAN designation (confirmed no fee):** Any honorably discharged veteran may add "VETERAN" to their Vermont DL or ID at no additional charge. Requires a completed Vermont Certificate of Veteran Status (Form VG-168) certified by OVA.
Verify locally: **VETERAN designation (confirmed no fee):** Any honorably discharged veteran may add "VETERAN" to their Vermont DL or ID at no additional charge.

Authority: dmv.vermont.gov/military

17. CDL Fee / Skills-Test Waiver

Vermont resident applicant for a commercial driver's license who operated a military vehicle equivalent to a commercial motor vehicle within the past 12 months of discharge, with a clean driving record.

Authority: 23 V.S.A. § 4108; dmv.vermont.gov/military/military-test-waiver

18. Veteran Designation on DL / ID

Covered fully under §16. VETERAN designation is available on both DL and state ID at no fee. Process: Form VG-168 certified by OVA, submitted to DMV with a new credential application.

Outdoor Recreation

19. Hunting License

**Veteran eligibility:** Vermont resident veteran with a **60% or greater service-connected disability** rating (current or historical — statute says "is, or ever has been, 60% disabled") receives a free **permanent hunting license** including all big-game privileges (moose license excluded).
Verify locally: Bring a VA letter confirming 60%+ SC rating.

Authority: 10 V.S.A. § 4255; vtfishandwildlife.com/permanent-licenses-disabilities

How to apply: Call Vermont Fish and Wildlife Licensing Unit: 802-828-1190. Bring a VA letter confirming 60%+ SC rating.

20. Fishing License — Freshwater

**Same 60%+ SC disability threshold as §19:** Free permanent freshwater fishing license for qualifying veterans.

Authority: 10 V.S.A. § 4255

21. Fishing License — Saltwater

Vermont is landlocked. No saltwater fishing license program exists.

22. Combination Hunt/Fish License

Same 60%+ SC disability threshold (veteran) or paraplegia/severe mobility disability.

Authority: 10 V.S.A. § 4255; vtfishandwildlife.com/permanent-licenses-disabilities

23. Trapping License

**Unavailable as a veteran-specific benefit** — no documented free or discounted trapping license for veterans found in Vermont statute or OVA program list. Standard trapping license fees apply. ⚠️ verify with VT Fish and Wildlife (802-828-1190) in case a local program exists.
Verify locally: ⚠️ verify with VT Fish and Wildlife (802-828-1190) in case a local program exists.

24. State Parks — Day Use / Entrance

Vermont resident honorably discharged from active duty in U.S. Armed Forces - **Benefit:** Lifetime free day-use admission to all Vermont State Parks and Vermont State Historic Sites - **Cost:** One-time $2 administrative fee (paid at town clerk) - **Where to apply:** Your local Town Clerk's office. Bring proof of Vermont residency and DD-214. - **Exclusions:** Does NOT cover overnight camping fees, equipment rentals, or other park fees

Authority: veterans.vermont.gov/programs-administered; vtstateparks.com

25. State Parks — Camping

**Unavailable as a veteran-specific discount** — the Green Mountain Passport covers day use only. Overnight camping fees are charged at standard rates for all visitors, including veterans. ⚠️ verify with Vermont State Parks (888-409-7579) to confirm no veteran camping discount was added in 2026.
Verify locally: ⚠️ verify with Vermont State Parks (888-409-7579) to confirm no veteran camping discount was added in 2026.

26. State Parks — Annual / Lifetime Pass

The Green Mountain Passport (§24) functions as a **lifetime day-use pass** for a one-time $2 fee. No separate annual parks pass or veteran camping pass has been identified beyond this program.

27. Boat / Watercraft Registration

**Unavailable as a veteran-specific exemption** — no documented veteran boat registration fee waiver exists in Vermont law. Standard motorboat registration fees ($33–$305 based on vessel length) apply. The vehicle Purchase and Use Tax exemption (§3) is specific to motor vehicles acquired with VA assistance; its application to boats is unconfirmed. ⚠️ verify with VT DMV if you received a boat via VA financial assistance.
Verify locally: The vehicle Purchase and Use Tax exemption (§3) is specific to motor vehicles acquired with VA assistance; its application to boats is unconfirmed. ⚠️ verify with VT DMV if you received a boat via VA financial assistance.

Education

28. In-State Tuition

**Veterans using GI Bill benefits:** All honorably discharged veterans using any GI Bill program who **live in Vermont** qualify for in-state tuition at Vermont public institutions, regardless of formal state of legal domicile — federal Section 702 of the Choice Act requires this of all Vermont public schools (Vermont State University system, University of Vermont, Community College of Vermont).

Authority: Federal Choice Act § 702; uvm.edu/policies/tuition-billing; northernvermont.edu/in-state-tuition

29. Tuition Waiver — Disabled Veteran

**Unavailable as a standalone Vermont state program** — Vermont does not have a dedicated disabled-veteran tuition waiver separate from the in-state tuition guarantee (§28) and the National Guard benefit (§32). Disabled veterans use §28 plus federal VA Vocational Rehabilitation (Ch. 31) and GI Bill programs. Proposed "Green Mountain Dependent's Scholarship" legislation for 100% P&T veterans' dependents has been discussed but was not enacted as of 2026-05-30. ⚠️ verify with OVA whether any change was passed in the 2026 legislative session.
Verify locally: ⚠️ verify with OVA whether any change was passed in the 2026 legislative session.

30. Dependent Education Benefit

Children, stepchildren, or spouses of: - U.S. active-duty members who died on active duty after January 1, 2001 (must be Vermont resident at death, or VTNG/Vermont-based Reserve unit member), OR - Vermont National Guard members killed while serving at any time since 1955 - **Amount:** Full tuition at Vermont public colleges (Vermont State University, UVM, CCV) — up to 18 credits per semester, up to 130 total credits (undergraduate). Pell Grant amount is deducted from award. Vermont private colleges: partial tuition up to the equivalent of in-state public-college tuition. - **Application:** Unified Scholarship Application via VSAC; first-come, first-served - **Contact:** VSAC: 800-882-4166; vsac.org

Authority: vsac.org/pay/student-aid-options/scholarships/military-servicemembers

31. Spouse Education Benefit

**Vermont Armed Services Scholarship** (same as §30): Surviving spouses of qualifying killed members are eligible under the same program. No separate spouse tuition benefit exists for spouses of living veterans or currently serving members (beyond in-state tuition under §28 and VSAC scholarship opportunities).

32. National Guard / Reserve Tuition Assistance

Active Vermont National Guard members in good standing - **Benefit:** Interest-free, forgivable loan covering tuition only (not room/board/fees) - Vermont public colleges: up to full tuition at Vermont State University or UVM rate - Vermont private or out-of-state institutions: up to UVM's in-state tuition rate - **Forgiveness:** 2 years of VTNG service per full-time (12+ credits) academic year funded; 6 months of service per certificate program - **Priority deadline:** Typically February of each academic year via VSAC Unified Scholarship Application (2026–27 deadline was February 11, 2026) - **Federal benefits first:** GI Bill, Chapter 33, etc. must be used first; VNGTBP fills remaining tuition gap - **Contact:** VSAC: 800-882-4166; vsac.org/vermont-national-guard-tuition-benefit-program; VTNG Education Office: vt.public.ng.mil

Authority: 16 V.S.A. § 2857

33. K-12 Support

**Interstate Compact on Educational Opportunity for Military Children (MIC3):** Vermont participates. Removes enrollment barriers for military-connected K-12 students during PCS moves — covers enrollment, placement, graduation credits, and extracurricular eligibility. Contact: Vermont Agency of Education, 802-828-6956.

34. State Student Loan / Scholarship

**VSAC Scholarships:** VSAC manages a portfolio of privately funded scholarships for veterans and military families; amounts and eligibility vary. See vsac.org.

Employment & Licensing

35. Veterans Hiring Preference

90+ days active duty plus honorable discharge; disability-rated veterans for 10-point preference - **Special access:** Eligible veterans may apply for Vermont state positions that are normally restricted to current state employees (internal-promotion-only competitions opened to qualifying veterans)

Authority: 20 V.S.A. § 1543; humanresources.vermont.gov/veterans-preference

36. Professional License Fee Waiver

**Application fee waiver:** Vermont Secretary of State's office waives professional license application fees for qualified military members and military spouses upon request.
Verify locally: ⚠️ verify current ASE equivalency requirements with VT DMV.

Authority: 26 V.S.A. § 1401a; 3 V.S.A. § 125; professionals.vermont.gov

37. Professional License Reciprocity — Military Spouse

Vermont allows expedited licensure for military spouses who hold a current license in another state and relocate to Vermont on PCS orders. The Department of Professional Regulation waives standard waiting periods and certain requirements for equivalent out-of-state licenses. Application fee waiver applies (§36).

Authority: 3 V.S.A. § 125; professionals.vermont.gov

38. Business License Fee Break

**Unavailable as a veteran-specific program** — Vermont does not impose a general statewide business license, so there is no fee to waive. Profession-specific licensing is covered under §36. ⚠️ verify with the Vermont Secretary of State for any 2026 legislative changes to veteran-owned business registration.
Verify locally: ⚠️ verify with the Vermont Secretary of State for any 2026 legislative changes to veteran-owned business registration.

39. Civil Service / Retirement Credit

**Military Training Leave:** Employers must grant up to **15 days per year** of unpaid leave for Guard or Reserve training; job, seniority, and benefits protected (21 V.S.A. § 491).
Verify locally: **Vermont State Employees Retirement System (VSERS) military service credit:** ⚠️ No standalone Vermont state pension credit for military service confirmed beyond USERRA protections. Verify locally.

Authority: 21 V.S.A. § 491 (training leave); USERRA (federal)

Housing & Financial

40. State Home Loan / Down-Payment Assistance

**No Vermont-exclusive veteran state home loan** — Vermont relies on the federal VA Loan guaranty for veterans.
Verify locally: **Vermont Housing Finance Agency (VHFA) ASSIST Program:** - Up to **$10,000** in down payment and closing cost assistance as a 0% second mortgage (non-amortizing) - Must be used with a VHFA first mortgage through an approved lender - Income limits approximately $110,000–$180,000 (household size and county dependent; verify with VHFA for current year limits) - Not veteran-exclusive; veterans qualify on the same income/purchase-price basis as other first-time homebuyers - Contact: VHFA, 802-864-5743; vhfa.

41. Financial Assistance / Emergency Relief

Vermont resident veteran facing financial hardship; no specific income cap documented but program is needs-based - **Application:** Phone call (~10 minutes); call OVA: 888-666-9844 (in-state) or 802-828-3379

Authority: veterans.vermont.gov/emergency-financial-assistance

42. State Veteran Bonus

Vermont does not have an active wartime service bonus, enlistment bonus, or deployment bonus program. Historical bonuses were paid after WWII/Korea/Vietnam but no current program exists. ⚠️ verify with OVA (888-666-9844) for any pending 2026 legislation.

43. Specially Adapted Housing — State Supplement

**Unavailable as a Vermont-specific state grant** — no Vermont state adapted-housing supplement program was identified. Federal VA programs available to Vermont veterans: - **SAH Grant:** Up to $126,526 (FY2026 limit) for veterans with permanent total SC disability affecting mobility - **SHA Grant:** Up to $25,350 (FY2026 limit) for veterans with certain SC disabilities - Apply: VA Form 26-4555

44. Utility / Heating Assistance

**Vermont Fuel Assistance (LIHEAP):** Income-based; veterans qualify on the same basis as other low-income Vermonters. Not veteran-specific.
Verify locally: ⚠️ verify with OVA (888-666-9844) whether additional programs were added in 2025–2026 budget cycles.

Health & Support

45. State Veterans Home / Nursing Home

- Honorably discharged veteran who served at least **90 consecutive days** on active duty (unless earlier discharge was due to a service-connected disability) - Medically in need of skilled nursing level of care - Vermont residency not required, but Vermont residents have **priority admission** - Spouses, widows/widowers, and Gold Star parents of qualifying veterans may also be eligible - **Services:** Skilled nursing, long-term care, post-operative care, IV medications, physical/occupational/speech therapy, certified dementia/Alzheimer's unit - **Cost (2026):** $2,291–$10,737/month (average approximately $6,514/month as of February 2026) - **Payment:** Private pay, Medicare, Vermont Medicaid, VA (veterans with 70%+ disability rating) - Staff assists with enrollment in all available insurance programs

Authority: vvh.vermont.gov; veterans.vermont.gov/long-term-care

46. Behavioral / Mental Health Programs

**VA White River Junction Healthcare System:** Full behavioral health program; VA PTSD National Center headquarters on campus. Outpatient mental health, telehealth, inpatient services. Community-Based Outpatient Clinics (CBOCs) in Bennington and Colchester; community partnerships in Newport and St. Johnsbury.

47. Dental / Vision / Health Programs

**Unavailable as a Vermont state program** — Vermont has no standalone state dental or vision benefit for veterans. Veterans access dental and vision through federal VA eligibility (service-connected conditions), the VA Dental Insurance Program (VADIP), or Medicaid/marketplace coverage. Vermont Medicaid (Green Mountain Care) covers dental for eligible low-income Vermonters including veterans. ⚠️ verify with OVA whether any state supplement was added in recent budget cycles.
Verify locally: ⚠️ verify with OVA whether any state supplement was added in recent budget cycles.

48. Long-Term Care / Aid & Attendance Supplement

Vermont Veterans' Home (§45) is the primary state long-term care resource. Vermont has no state-level Aid and Attendance supplement separate from the federal VA Aid and Attendance pension benefit. Veterans apply for federal VA A&A through a VSO or OVA.

49. Free Legal Aid / Veteran Treatment Courts

**South Royalton Legal Clinic — Vermont Law and Graduate School:** - Represents veterans in VA benefits claims/appeals, discharge upgrades, bankruptcy, SSI/SSDI, foreclosure, landlord-tenant, expungement - Free to eligible veterans; student clinicians supervised by licensed attorneys - Phone: 802-831-1500; vermontlaw.edu/south-royalton-legal-clinic

50. Concealed Carry / Firearms Fee Waiver

**Vermont is a constitutional-carry state** — no permit is required for concealed or open carry by any person who can legally possess a firearm. There is no CCW permit, no permit fee, and no veteran-specific fee waiver because no permit exists.

51. Vital Records / Notary Fee Waiver

**Vital records fee waiver:** No fees charged to honorably discharged veterans (or their dependents/beneficiaries) for copies of vital records needed to pursue any claim for benefits from the U.S. government or any state agency.

Authority: 32 V.S.A. Chapter 17; healthvermont.gov/vital-records

Legal & Administrative

52. Unique State Programs

**Vermont State Military Medals:** - Veterans Medal — awarded to honorably discharged Vermont veterans - Distinguished Service Medal — combat service plus honorable discharge - Patriots Medal — awarded to next of kin of service members killed in action Apply through Vermont Office of Veterans Affairs.

Survivor Benefits

53. Surviving Spouse — Property Tax

Unremarried widow/widower of a veteran who met the property tax exemption criteria (50%+ SC, VA pension, or DIC) at time of death. Must continue to own and occupy the property as primary residence. Must not remarry.

Authority: 32 V.S.A. § 3802(11); veterans.vermont.gov/property-tax-exemption

54. Surviving Spouse — Education

**Vermont Armed Services Scholarship** (§30/§31): Surviving spouses of qualifying service members killed on active duty (post-2001) or VTNG members killed while serving receive full tuition at Vermont public colleges, partial coverage at Vermont private colleges. Up to 130 credits (undergraduate only).

55. Dependent / Survivor State Benefit

**No Vermont state-level DIC equivalent** exists — Dependency and Indemnity Compensation is a federal VA benefit. Vermont OVA assists survivors in filing federal DIC claims.

Memorial & Burial

56. State Veterans Cemetery

Same as VA national cemetery — honorably discharged veteran, active-duty service member who dies while serving, and certain National Guard/Reserve members. Spouses and eligible dependents may also be interred (fees apply for non-veteran family members). - **Features:** Perpetual care of grave lot; government-issued headstone/marker at no charge; non-denominational chapel; memorial garden

57. Burial Allowance / Plot

**Vermont state burial guarantee for destitute veterans:** Vermont law provides that when an honorably discharged veteran dies without sufficient known assets to cover burial costs, the Vermont Department for Children and Families shall arrange and pay for burial. The exact maximum dollar amount is set by departmental rule. ⚠️ verify current amount with Vermont Economic Services Division: 800-479-6151.
Verify locally: ⚠️ verify current amount with Vermont Economic Services Division: 800-479-6151.

58. Headstone / Memorial / Honors

**Military Funeral Honors:** - Vermont National Guard Honor Guard performs: rifle salute, flag folding, flag presentation, and Taps - Contact: Vermont National Guard Funeral Honors, 802-338-3490 - Available to any eligible veteran (honorable discharge)