Property Tax Exemption for Disabled Veterans
$10,000-$40,000 exemption off appraised home value for veterans rated 50%+ disability (amount varies by town vote).
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Apply directly through the official Vermont agency.
About this benefit
Eligibility
(a) VA disability compensation at 50% or higher; OR (b) VA non-service-connected pension; OR (c) permanent medical military retirement pay. Must own and occupy home as primary residence. Vermont residency required.
Minimum $10,000 exemption mandated by state; towns may vote to increase up to $40,000.
Deadline
Must submit annually by May 1 to VT Office of Veterans Affairs. Veterans rated totally and permanently disabled only prove eligibility the first year.
Verified against official source
Last checked 2026-05-06 against veterans.vermont.gov. Always confirm current rates and rules with the Vermont state agency before applying.
Other Vermont Tax Benefits
Military Retirement Income Tax Exemption (Act 71)
Full exemption of military retirement pay and survivor benefit income from Vermont state income tax for AGI up to $125,000.
Up to 8.75% savings on retirement pay
Vermont Veteran Tax Credit (Act 71)
Up to $250 refundable tax credit for Vermont resident veterans with AGI of $25,000 or less.
Up to $250
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