Vermont Veteran Tax Credit (Act 71)
Up to $250 refundable tax credit for Vermont resident veterans with AGI of $25,000 or less.
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Apply directly through the official Vermont agency.
About this benefit
Eligibility
Vermont resident or part-year resident veteran with a discharge record. AGI of $25,000 or less receives the full $250 refundable credit. AGI between $25,000 and $30,000 receives a reduced credit. No credit above $30,000. Effective for tax year 2025.
How to apply
Claimed when filing Vermont state income tax return starting in 2026.
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
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).
$200-$800/year depending on town
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