Vermont Military Retirement Pay Partial Income Tax Exemption

Vermont Military Retirement Pay Partial Income Tax Exemption

Vermont resident military retirees can exclude up to $10,000 of military retirement pay from their Vermont state income taxes, provided their adjusted gross income is $50,000 or…

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Last checked: 2026-05-21

Details

Vermont resident military retirees can exclude up to $10,000 of military retirement pay from their Vermont state income taxes, provided their adjusted gross income is $50,000 or less (single) or $65,000 or less (joint filers). The exemption phases out over the next $10,000 of income.

Restrictions

Retirees must choose between the military retirement exemption and the Social Security exemption, they cannot claim both in the same tax year.

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