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August 11, 2021

Vermont Veteran Benefits Guide [Updated]

Last updated on April 17, 2024

I hope you enjoy reading this blog post.

If you want to learn how to implement these strategies to get the VA benefits you deserve, click here to speak with a VA claim expert for free.

There are many Vermont veteran benefits and exemptions provided by the state to current and former members of the Armed Forces who served honorably in the U.S. military.

Many of the benefits we outline in this guide apply specifically to disabled veterans. Vermont has a veteran population of over 43,000 veteran residents and nearly 30 percent have a VA disability rating!

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Top Vermont Veteran Benefits

There are over 1,000 people in Vermont who work to help veterans and their families!

The state offers:

  • Property tax exemptions
  • Education benefits including tuition assistance and student loan forgiveness
  • Employment assistance
  • Financial assistance to veterans in need
  • Recreational discounts

An excellent resource for Vermont veterans is the state’s Office of Veteran Affairs, which assists veterans in securing all the benefits they rightfully earned.

Make sure to compare the different types of exemptions you may qualify for as a veteran, especially when it comes to property tax exemptions and tuition-related educational options.

We’ve created this complete guide of Vermont veteran benefits to help you find all the benefits you’ve earned!


Tax Benefits

Property Tax Exemptions for Veterans in Vermont

Vermont disabled veteran benefits include property tax exemptions. The baseline property tax exemption is $10,000, which reduces the assessed value of your home.

The exemptions vary from town to town, so make sure to check with your local county assessor, as some towns increase the exemption up to $40,000! 

To qualify for the property tax exemption, you must meet one of the following requirements:

  • Have a disability rating of 50 percent or more
  • Be receiving pay for a medical retirement
  • Be an unremarried surviving spouse of a veteran eligible for the property tax exemption

Make sure you apply with the Vermont Office of Veterans Affairs before the annual May 1st deadline to apply for the exemption for the following year. 

You can obtain proof of eligibility online through ebenefits.

Unless you have a permanent and total (P&T) disability rating, you’ll likely be required to provide proof of eligibility annually. 

Income Tax Exemptions

Vermont taxes both active duty pay and military retirement pay. For active duty service members, the state taxes your active duty military income unless you’re stationed outside Vermont. When stationed outside of the state, military pay is fully exempt from Vermont state income tax. 

Additionally, if you make $50,000 or less as your federal adjusted gross income, and are a member of the Vermont National Guard or Reservist, up to $2000 or your training pay is exempt from state income tax. 

Vermont taxes military retirement pay at the state income tax range of 3.55 percent to 9.4  percent, depending on total income. There are no state income tax exemptions for military retirement pay in Vermont.

Although the state taxes military retirement, there are no taxes on:

  • Military disability pay
  • VA Dependency and Indemnity Compensation (DIC) pay

As a veteran you can simply deduct your disability or DIC pay from your adjusted gross income for the state.

VERMONT TAX BENEFITS min

Education

Vermont offers veterans and service members two main types of scholarship opportunities in addition to your federally administered VA educational benefits:

  • Vermont Armed Services Scholarship
  • Vermont National Guard Tuition Benefit Program (Loan Forgiveness)

Vermont Armed Services Scholarship

The Vermont Armed Services Scholarship provides free tuition for the families of Vermont service members who died on active or inactive duty. To qualify, the member who passed away must have been a Vermont resident or serving in the Vermont National Guard. 

Children (including step-children) and spouses are eligible for this scholarship. 

Learn how to apply for the Vermont Armed Services Scholarship here. 

Loan Forgiveness for Vermont National Guard Members

In 2018, Vermont began offering student loan forgiveness to Vermont National Guard members.

Members are now eligible for loan forgiveness for tuition at a Vermont university, college, or other approved program. 

The loan award amount varies based on the college the applicant is attending. The loan requires that National Guard members serve two years for every full-time academic year forgiven (with 12 credits or more per academic year considered full-time). 

Applicants are eligible if applying for loan forgiveness towards their first bachelor’s degree. Members must also be complete with basic training and have exhausted post-9/11 GI Bill benefits and other federally funded military tuition assistance. 

You can learn more about the Vermont National Guard Educational Assistance Program here

College Credit in Vermont for Military Training

Vermont colleges and universities recognize your military training and may award academic credit for it toward your degree. 

When you begin your application, you’ll apply for an official evaluation of your Joint Services Transcript (JST) to determine which transfer credits are eligible.

Request a transcript from your service branch. Each service branch will provide official copies to schools at no charge.

Resident College Tuition Rates in Vermont

Vermont veteran benefits include in-state tuition rates for eligible veterans. Typically, Vermont requires at least one year of residency before granting in-state tuition rates.

If you meet one of the following requirements, you’re eligible for in-state tuition at any public Vermont university or college:

  • You’re on active duty and stationed in Vermont for more than 30 days, regardless of whether you move after you start taking classes (your dependents qualify too!) 
  • You live in Vermont and are using VA education benefits within three years of honorable discharge from active duty service
  • You live in Vermont and received transferred Post-9/11 GI Bill benefits, regardless of your state of residency
  • You’re a Fry Scholarship recipient
  • You’re a Vermont National Guard member in good standing pursuing your first bachelor’s degree and you’ve completed basic training
VERMONT EDUCATION BENEFITS min

Employment

There are a number of Vermont veteran benefits that offer support with employment and many resources are available to help veterans and their families find jobs and advance their careers.

Vermont Veterans’ Employment Preference

Veterans and disabled veterans receive preference when applying for federal, state, county, and local government jobs in Vermont. 

All honorably discharged veterans receive preference points added to their total application score. Additionally, veterans with a service-connected disability, spouses of totally disabled veterans, and unremarried surviving spouses receive additional preference points. 

Vermont is one of the few states that doesn’t clarify exactly how many preference points are added, but the important thing is that you do receive preference! When looking at state jobs, keep an eye out for “state promotional only” jobs, as these jobs are uniquely available to veterans.

Normally these jobs are only available to current state employees. As a veteran you have special access to apply to these. 

Learn more about Vermont veteran benefits for state employment preference here.

Vermont Veterans Employment Assistance

The Vermont Department of Labor helps veterans find gainful employment.

Career Resource Centers located across the state are staffed by counselors that have the resources to help you find the right job, work with you to improve your resume, or get access to additional training to qualify for a job. 

Contact one of the 12 resources centers across the state to get the employment assistance you earned.


Financial Assistance

Vermont Veterans Assistance Fund

Vermont veteran benefits include immediate help covering emergency costs for veterans.

If you’re a Vermont resident veteran and you need immediate help covering critical life needs, this program offers veterans a one-time payment up to $500. You can apply over the phone in as little as 10 minutes. 

Contact the Vermont Office of Veterans Affairs to apply for this fund at (802) 828-3379.

Vermont 211

Vermont 211 is a fantastic organization dedicated to helping veterans with basic life necessities.

If you’re a veteran struggling to pay for necessities including food, shelter, or utilities, Vermont 211 is a one-stop shop for all state and federal programs available to help you through difficult times. 

Learn more about the services offered by Vermont 211 online here.


Housing

VT Veterans Home

The Vermont Veterans’ Home located in Bennington is dedicated to serving veterans with a full range of care as part of the Vermont veteran benefits you earned.

The facility offers a variety of services, including:

  • Skilled nursing care
  • Certified Alzhiemer’s unit
  • Rehabilitation therapy
  • Medical social work
  • Respite care
  • Registered dietician
  • Podiatry care
  • End of life care
  • Transportation to medical appointments
  • Guest room for family members

Veterans, spouses, and Gold Star parents are eligible for admission. Vermont veterans receive priority for admission, but veterans from all states are welcome to apply! 

The veteran must have served on active duty for 90 days or more and must have received a discharge under honorable conditions. 

To apply, see the Vermont Veterans’ Home Admission Application. 

Call (802) 447-6539 for more information.

Learn more about the Vermont Veterans Home.

VERMONT White House with porch in autumn.

VA Locations and Medical Facilities in Vermont

LocationMedical Facilities for Vermont Veteran Benefits
BenningtonBennington Outpatient Clinic
BrattleboroBrattleboro Community Based Outpatient Clinic
KeeneKeene VA Clinic
LittletonLittleton VA Clinic
BurlingtonBurlington Outpatient Lakeside Clinic
NewportNewport Community Based Outpatient Clinic
RutlandRutland Community Based Outpatient Clinic
South BurlingtonSouth Burlington Vet Center
BerlinBerlin Vet Center
White River JunctionWhite River Junction VA Medical Center
White River JunctionWhite River Junction Vet Center

Vehicle and Driver’s License

Veteran Designation on Driver License or Identification (ID) Cards

Any honorably discharged veteran can request a “Veteran” designation for a small fee on the front of his or her Vermont driver’s license or ID card.

The word “Veteran” printed on the center of a license allows Vermont veterans to validate their honorable service with a government-issued ID card. 

To apply for DMV Vermont veteran benefits, bring a Vermont Certification of Veteran Status to your local DMV office or the Vermont office of Veterans Affairs.

Free Vehicle Registration for Disabled Veterans with Modified Vehicles

Vermont offers free vehicle registration for veterans with certain disabilities.

To qualify, you must have modifications to your vehicle paid for by the VA. If you meet this requirement, you’re exempt from paying vehicle sales tax, registration, and license fees.

Bring a copy of VA Form 21-4502 certifying the VA’s financial assistance in the purchase of the car to the DMV to waive these fees. 


Recreation

Vermont offers service members and veterans several discounts for recreation, as a way of saying thanks for the many sacrifices you’ve made. 

Free Hunting and Fishing Licenses for Disabled Veterans

Veterans with a VA disability rating of 60 percent or more are eligible for a free permanent fishing or combination hunting and fishing license.

You must be a Vermont resident to apply for a permanent license. Residents of states with hunting and fishing reciprocity agreements with Vermont are eligible for a free one-year license. Currently this applies to residents of New Hampshire and Maine. 

If applying for a hunting license, you’ll need to provide proof that you’ve completed hunting safety training. 

To apply, see the Vermont Fish & Wildlife Department Sporting License Application.

Mail your application to:

Fish & Wildlife Department

1 National Life Drive, Dewey Bldg

Montpelier VT 05620-3208

Free Military Hunting and Fishing Licenses for Vermont Residents

Vermont veteran benefits offer resident service members free hunting and fishing licenses!

You must be serving on active duty or on active duty orders for 120 consecutive days or more. Your license is valid until expiration, regardless of your discharge date. 

Service members can purchase military licenses online or through an authorized license agent. 

Military members stationed in Vermont on active duty orders are eligible to purchase licenses at resident rates. 

Vermont Green Mountain Passport Lifetime Pass

If you’re a resident veteran in Vermont, the Green Mountain Pass is an excellent benefit to enjoy Vermont’s state parks with free day-use entry for life.

The pass is available to all honorably discharged veterans in Vermont. The pass only costs $2 and is available for purchase at your local Town Clerk’s office

Orange trees canopying a Vermont road in autumn.

Vermont’s Medals for Veterans

Vermont veteran benefits include three types of medals to honor the sacrifice of service members and their families: 

Vermont Veterans Medal

The Vermont Veterans Medal is awarded to most veterans with an honorable discharge.

Vermont Distinguished Service Medal

The Vermont Distinguished Service Medal honors veterans who served in a combat theater with an honorable discharge. 

The Patriots Medal

The Patriots Medal is presented to next-of-kin of Vermont service members killed in action. 

To be awarded a medal, veterans must be residents of the state and must apply or have someone apply on their behalf. Vermont holds an annual medal presentation at the Vermont State House with the Vermont Governor. Veterans can choose to attend this ceremony or simply receive their medal in the mail. 

To apply, call the Vermont Office of Veterans Affairs at (802) 828-3379.


Frequently Asked Questions (FAQs)

Are there special property tax exemptions for Vermont veterans?

Yes, Vermont disabled veterans with a VA disability rating of 50 percent, or more or those receiving medical retirement pay, receive a property tax exemption in Vermont up to $10,000 in most cases.

You should apply by the May 1st deadline to qualify. Unremarried surviving spouses of eligible veterans may also apply for this benefit. 

Are there income tax benefits for Vermont veterans?

Active service members who are residents of Vermont don’t have to pay state income tax if they are stationed outside of Vermont. Veterans receiving military retirement do owe Vermont state income tax.

Does Vermont award college credit for military training?

Yes, Vermont colleges individually evaluate your military training and experience, and award credit and credentialing appropriately.   

Do Vermont veterans receive preferential treatment when seeking employment?  

Vermont veterans with an honorable discharge receive preference points added to the Vermont civil service application for Vermont jobs. 

Does Vermont offer employment counseling and assistance to veterans seeking employment? 

Yes, Vermont offers veterans help finding gainful employment through 12 Career Resource Centers located throughout the state. 

Does Vermont offer any special financial assistance to veterans and their families? 

Yes, the Vermont Veterans Assistance Fund is designed to help veterans cover basic life needs during emergencies by offering a one-time payment up to $500. 

Are there Vermont veteran benefits offering reduced recreational fees?

Yes, if you’re a resident of Vermont serving on active duty or on active duty orders for more than 120 days, you may be eligible for a free hunting and fishing license.

Additionally, disabled veterans with a VA disability rating of 60 percent or more are eligible for a permanent combination license if they’re a Vermont resident, or a one-year license for residents of Maine and New Hampshire. All honorably discharged veterans are also eligible for a $2 lifetime pass granting free day entry to Vermont state parks. 


MAKE SURE YOU GET ALL THE BENEFITS YOU DESERVE

Regardless of what state you live in, it’s important that you pursue the monthly compensation payments due to you for disabilities connected to your military service.

Most veterans are underrated for their disabilities and therefore not getting the compensation they deserve. At VA Claims Insider, we help veterans understand and take control of the claims process so they can get the rating and compensation they’re owed by law.

Our process takes the guesswork out of filing a VA disability claim and supports you every step of the way in building a fully-developed claim (FDC)—so you can increase your rating in less time!  

If you’ve filed your VA disability claim and have been denied or have received a low rating – or you’re not sure how to get started – reach out to us for a FREE VA Claim Discovery Call, so you can FINALLY get the disability rating and compensation you deserve. We’ve supported more than 25,000 veterans to win their claims and increase their ratings. NOW IT’S YOUR TURN.


About the Author

Brian Reese
Brian Reese

Brian Reese

Brian Reese is one of the top VA disability benefits experts in the world and bestselling author of You Deserve It: The Definitive Guide to Getting the Veteran Benefits You’ve Earned (Second Edition).

Brian’s frustration with the VA claim process led him to create VA Claims Insider, which provides disabled veterans with tips, strategies, and lessons learned to win their VA disability compensation claim, faster, even if they’ve already filed, been denied, gave up, or don’t know where to start. 

As the founder of VA Claims Insider and CEO of Military Disability Made Easy, he has helped serve more than 10 million military members and veterans since 2013 through free online educational resources.

He is a former active duty Air Force officer with extensive experience leading hundreds of individuals and multi-functional teams in challenging international environments, including a combat tour to Afghanistan in 2011 supporting Operation ENDURING FREEDOM.

Brian is a Distinguished Graduate of Management from the United States Air Force Academy, Colorado Springs, CO, and he holds an MBA from Oklahoma State University’s Spears School of Business, Stillwater, OK, where he was a National Honor Scholar (Top 1% of Graduate School class).

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