Official sources reviewed 2026-08-29

Vermont Veteran Benefits

Review 38 source-backed Vermont veteran benefit records, eligibility considerations, and program source links.

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Reviewed Vermont benefit records

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Property and state tax

Vermont tax relief

Vermont provides an exemption on at least $10,000 of the appraised value of an owned primary home; a town may increase it to $40,000. Eligibility routes include VA disability compensation rated at least 50%, non-service-connected VA pension, or permanent military medical-retirement pay; a qualifying surviving spouse may continue the benefit. Submit proof to Vermont Veterans Affairs before May 1. Permanently and totally disabled beneficiaries generally provide proof only in the first year for that home; moving to a different town requires new proof.

Property and state tax

Combat Zone Property Tax Credit and Renter Credit

Qualifying service members called to full-time active duty because of a military conflict in a designated combat zone may file Vermont property-tax-credit or renter-credit claims up to 180 days after the qualifying service ends, or after hospitalization for an injury or disability resulting from that service ends. This is a filing extension, not an additional credit or automatic exemption from eligibility requirements. Supply the required claim and service documentation to the Department of Taxes.

Education

Vermont Armed Services Scholarship

The Vermont Armed Services Scholarship helps qualifying children, stepchildren and spouses of deceased service members attend an eligible Vermont institution for a certificate or non-postgraduate degree. Eligibility depends on the member’s service, death dates and Vermont connection; specific rules cover Vermont National Guard and U.S. Armed Forces members. Apply through VSAC’s Unified Scholarship Application and FAFSA, with required family and military documentation. Awards depend on eligibility and available funds; this is a survivor education program, not a scholarship for all Veterans.

Family

Vermont Burial Assistance for Low Income Veterans

Vermont’s Office of Veterans Affairs states that destitute Veterans are assured an appropriate burial at state expense. Families should contact the Economic Services Division at 800-479-6151 to determine eligibility and arrange assistance. The Vermont Veterans Memorial Cemetery is also an option to discuss; this record does not promise a fixed cash amount or reimbursement to every low-income family.

Employment

Vermont Certified Inspection Mechanic Examination Waiver for Service Members and Veterans

Service members and Veterans trained as wheeled-vehicle mechanics (Army MOS 91 B or an equivalent specialty) may request a Vermont inspection-mechanic examination waiver with qualifying certification. DMV lists ASE diesel or light-truck certification, ASE Service Consultant, Certified Hazardous Materials Manager, or Associate Safety Professional certification. Submit proof through DMV’s service-member inspection-mechanic waiver process; military mechanic experience alone does not establish eligibility.

Vehicle, license, and plate

Vermont Commercial Driver License (CDL) Military Test Waiver

Vermont DMV may waive specified CDL tests for qualified current or recently separated military drivers. Its current state guidance requires two years of relevant military commercial-vehicle driving experience, qualifying driving history and military driving employment within the preceding year. Apply with the military waiver documentation; DMV determines which tests and endorsements can be waived. A temporary federal option may allow states to extend the lookback, so ask DMV whether an exception applies rather than assuming Vermont adopted it.

Vehicle, license, and plate

Vermont Disabled Veteran Plate

To request Vermont Disabled Veteran vehicle plates, obtain Office of Veterans Affairs certification of Veteran status and submit the required registration paperwork. DMV also requires qualifying disability documentation using its medical-evaluation process, unless an applicable existing disability plate or placard satisfies the requirement. A VA disability rating or P&T designation alone does not automatically establish eligibility for disabled parking.

Other resources and recognition

Vermont Distinguished Service Medal

Vermont’s Distinguished Service Medal recognizes qualifying federal active-duty service in a combat theater, supported by the required service or decoration evidence. Eligibility includes honorable discharge, death before separation, missing-in-action status, or a current federal active-duty member in good standing with more than four years of service. A qualifying Vermont connection can be current residency, residency when entering service, or federal mobilization with the Vermont National Guard or another Vermont-based reserve unit; current Vermont residence is not required in every pathway. Apply to the Office of Veterans Affairs with the medals application; qualifying next of kin may receive a deceased member’s award.

Travel and recreation

Vermont Free Disabled Veteran, Fishing, Hunting or Combination Licenses

A Vermont resident Veteran who has, or has ever had, a VA service-connected disability rating of at least 60% may qualify for a free permanent hunting, fishing or combination license with the required VA certification. Qualifying nonresident Veterans from reciprocal states may instead receive a free one-year license; Vermont Fish & Wildlife currently identifies Maine and New Hampshire. Hunting qualifications and other licensing rules still apply.

Vehicle, license, and plate

Vermont Gold Star License Plate

Vermont Gold Star Family plates are for qualifying surviving family members of a service member whose death meets the federal Gold Star Lapel Button criteria. Eligible relationships and circumstances are defined by 10 U.S.C. §1126; not every line-of-duty death qualifies for this particular plate. Submit DMV Form VD-157, the casualty documentation and Office of Veterans Affairs certification, along with required registration paperwork. DMV offers a separate Next of Kin plate for a different eligibility pathway.

Education

Vermont High School Diplomas for Wartime Veterans

Honorably discharged World War II, Korean War and Vietnam War-era Veterans who do not have a high-school diploma may apply through Vermont’s Office of Veterans Affairs for a diploma from a Vermont public school of their choice. The application specifies the qualifying wartime service periods and asks for discharge documentation and the chosen school. Confirm eligibility with OVA; the current instructions do not require the applicant to have left that particular Vermont school to enlist.

Employment

Vermont Hilton Honors Military Program

Vermont participates in the NASWA–Hilton Honors Military Program, a partner program that may provide eligible transitioning service members and Veterans up to 100,000 lifetime Hilton Honors points for approved employment-related travel. Verified interviews, training or pre-employment testing may qualify; general job hunting, vacation, relocation and reimbursement for past stays do not. Applicants must live in or plan to move to a participating state and work with the designated workforce contact. Approval and state-specific eligibility are required; this is not an automatic state cash benefit.

Property and state tax

Vermont Income Tax Exemptions for Military Pay

Vermont excludes qualifying full-time active-duty military pay earned outside Vermont by Vermont residents. It also excludes qualifying full-time active-duty military pay earned in Vermont by nonresidents. A separate exemption of up to $2,000 applies to qualifying in-state National Guard or Reserve unit-training pay when federal adjusted gross income is below $50,000 and the required commander certification is obtained. Other income and service circumstances can remain taxable; use current return instructions.

Property and state tax

Vermont Low Income Veterans Tax Credit

Beginning with tax year 2025, qualifying Vermont resident or part-year-resident Veterans may claim a refundable $250 Veteran Tax Credit when adjusted gross income is $25,000 or less. The credit phases down as income rises above $25,000 through $30,000. A discharge or separation record verifying qualifying active-duty service is required. Claim it with the Vermont income-tax return.

Family

Vermont Military Funeral Honors

The Vermont National Guard Honor Guard assists with military funeral honors for eligible Veterans. Honors may include a flag-folding and presentation ceremony, Taps and a rifle salute; confirm the available arrangements for the particular service instead of assuming every element is guaranteed. Contact the Honor Guard detail at 802-338-3490.

Vehicle, license, and plate

Vermont Military License Plates

Vermont DMV offers military plates tied to verified service, awards or surviving-family status. Eligibility and documentation vary by plate. Use the current DMV plate instructions and, when required, obtain Office of Veterans Affairs certification before submitting the plate and registration application. Plate eligibility does not by itself waive all registration fees or confer disabled-parking privileges.

Property and state tax

Vermont Nonresident Military Spouse Tax Exemption

Qualifying nonresident military spouses may exclude income protected by the Servicemembers Civil Relief Act from Vermont taxation. Residency is not determined solely by living in Vermont under military orders. For a tax year while married, service members and spouses may elect the service member’s residence or domicile, the spouse’s residence or domicile, or the permanent duty station under the federal residency-election rules. Other Vermont-source income may still require a return; review the Department of Taxes instructions for the selected residency.

Other resources and recognition

Vermont Patriots Medal

The Vermont Patriot’s Medal recognizes the families of Vermont residents killed in action while serving in the U.S. Armed Forces after February 28, 1961. State law also covers resident and nonresident members of the Vermont National Guard or other Vermont-based reserve units killed in action after that date. Contact the Office of Veterans Affairs about the award; it is recognition, not a cash or claims-assistance program.

Property and state tax

Vermont Property Tax Exemption for Disabled Veterans and their Survivors

Vermont provides an exemption on at least $10,000 of the appraised value of an owned primary home; a town may increase it to $40,000. Eligibility routes include VA disability compensation rated at least 50%, non-service-connected VA pension, or permanent military medical-retirement pay; a qualifying surviving spouse may continue the benefit. Submit proof to Vermont Veterans Affairs before May 1. Permanently and totally disabled beneficiaries generally provide proof only in the first year for that home; moving to a different town requires new proof.

Property and state tax

Vermont Property Tax Filing Benefits for U.S. Armed Forces Service Members During Military Conflict

For qualifying combat-related active-duty call-ups, a Vermont municipality may waive penalties, fees or interest for late principal-residence property-tax payments during active duty and for 180 days afterward. Submit military orders to the municipal clerk. Separately, a municipality may abate tax, penalties or interest from an incorrect or missing homestead declaration caused by full-time active duty outside Vermont. These are locally decided forms of relief, not an automatic waiver of the underlying property tax.

Vehicle, license, and plate

Vermont Purple Heart License Plate

Vermont offers Purple Heart vehicle plates for qualifying recipients. Obtain Office of Veterans Affairs certification and submit the military-plate paperwork and any required registration application and fees. Use the Certificate of Veteran Status plate process, not the driver-license application.

Employment

Vermont State Employment Veterans Hiring Preference

Vermont state hiring provides preference points to eligible Veterans, generally requiring at least 90 days of U.S. Armed Forces service and separation under honorable or other acceptable conditions. Additional preference may apply for service-connected disability, the spouse of a totally service-connected-disabled Veteran, or an unmarried widow or widower. Eligible preference applicants may also compete for positions marked State Promotional Only. Preference is not a guarantee of selection; document the applicable category.

Property and state tax

Vermont Tax Treatment of VA Dependency and Indemnity Compensation (DIC)

VA Dependency and Indemnity Compensation is a federal tax-free survivor benefit for qualifying spouses, children or parents. Vermont’s income calculation starts from federal adjusted gross income, so federally excluded VA DIC is not included through that starting point. DIC is not military retired pay or a Vermont-administered survivor award. Review eligibility and apply through VA.

Property and state tax

Vermont Taxes on Military Disability Retirement Pay

Military disability retirement pay is not automatically tax-free. Federal exclusion depends on the circumstances described in IRS Publication 525, such as qualifying combat-related disability or other statutory conditions; VA disability compensation is treated separately. Vermont starts from federal adjusted gross income, so amounts properly excluded federally are not included through that starting point. Federally taxable military retirement may qualify for Vermont’s separate income-limited military-retirement exclusion; use current Vermont tax instructions.

Property and state tax

Vermont Taxes on Survivor Benefit Plan (SBP), Reserve Component Survivor Benefit Plan (RCSBP) and Retired Serviceman’s Family Protection Plan (RSFPP) Annuities

Beginning with tax year 2025, Vermont exempts qualifying military retirement and survivor-benefit income in full when adjusted gross income is $125,000 or less. The exemption phases out above $125,000 and below $175,000; no exemption is available at $175,000 or more. Use the applicable Vermont income-tax return and current instructions.

Vehicle, license, and plate

Vermont U.S. Veteran License Plate

Vermont’s U.S. Veteran plate process serves qualifying Veterans and military members whose status is certified by the Office of Veterans Affairs. Submit Certificate of Veteran Status FormVG-168 and required registration paperwork and fees. The form also permits an eligible surviving spouse to retain or reissue the deceased spouse’s existing Veteran plate; that is not a general new-plate entitlement for all family members.

Other resources and recognition

Vermont Veteran and Family Outreach Program

Vermont Veterans Outreach helps Veterans connect with services and resources through the Vermont National Guard family-support network. Contact the current outreach staff for assistance and referral options. This outreach program should not be treated as a guaranteed 24-hour crisis call center. For immediate emotional crisis support, call 988 and press 1 for the Veterans Crisis Line.

Vehicle, license, and plate

Vermont VETERAN Designation on Driver’s Licenses and ID Cards

Qualifying Veterans may request a VETERAN designation on a Vermont driver’s license or identification card using the Office of Veterans Affairs certification process. Current driver-license law includes honorably discharged Veterans, Veterans discharged under honorable conditions, and qualifying individuals disabled during active military service. Provide the required service-status proof and DMV application; a statement that every discharge other than dishonorable automatically qualifies is too broad.

Financial

Vermont Veterans Assistance Fund

The Vermont Veteran Assistance Fund may provide a one-time payment of up to $500 to a low-income Vermont Veteran or family facing a financial crisis involving a critical need, such as housing or utilities. Contact the Office of Veterans Affairs to discuss eligibility and the request process. Assistance is conditional, not an automatic payment for every Veteran.

Other resources and recognition

Vermont Veterans Discharge Records Stored with the Office of Veterans Affairs

Vermont’s Office of Veterans Affairs holds discharge records for many people who entered military service from Vermont and records submitted for its benefit programs. Veterans can contact the office or use its records-request process to seek copies. It does not maintain complete military medical, performance or medal-citation files, and National Guard separation records may need to be requested from the Guard. A record is not guaranteed to be on file.

Employment

Vermont Veterans Employment Assistance

Vermont Department of Labor career-resource staff help Veterans with job search, career counseling, training needs and connections to available training programs. Specialized Veterans employment services may depend on disability or other employment barriers. Contact a career-resource center to identify the appropriate services; this is employment assistance, not a guaranteed tuition award or job placement.

Other resources and recognition

Vermont Veterans Medal

Vermont’s Veterans Medal recognizes qualifying federal active-duty service: generally a minimum two-year tour, with exceptions for government-convenience discharge or reserve-component retirement, and qualifying honorable-discharge, death or missing-in-action circumstances. Current federal active-duty members in good standing with more than four years of service may also qualify. A qualifying Vermont connection can be current residency, residency when entering service, or federal mobilization with the Vermont National Guard or another Vermont-based reserve unit; current Vermont residence is not required in every pathway. Apply to the Office of Veterans Affairs with its medals application; designated next of kin may receive a deceased member’s award.

Family

Vermont Veterans Memorial Cemetery (VVMC)

Vermont Veterans Memorial Cemetery in Randolph Center provides burial for eligible Veterans, spouses and certain children. The Office of Veterans Affairs describes perpetual care, government markers, a nonsectarian chapel and a memorial garden, with Veteran burial services provided without charge and a separate spouse fee. Contact the cemetery to establish eligibility and arrangements or pre-register. This is a burial program, not an education or military-retirement-tax benefit.

Health care

Vermont Veterans’ Home

The Vermont Veterans’ Home in Bennington offers rehabilitation and long-term care. Eligible applicants include Veterans with at least 90 days of military service and discharge under honorable conditions, qualifying Veterans’ spouses and Gold Star parents, subject to admissions review. Vermont residents receive priority, but qualifying out-of-state applicants are welcome. Submit the home’s admissions and medical/financial documentation; a VA P&T designation is not the sole admission requirement.

Other resources and recognition

Vermont's Medals for Veterans

Vermont administers the Veterans Medal, Distinguished Service Medal and Patriot’s Medal to recognize qualifying military service and sacrifice. Each has its own service, Vermont-connection and recipient requirements, including certain awards to surviving family members. These are recognition awards, not cash payments. Contact the Office of Veterans Affairs and use the applicable medal instructions.

Vehicle, license, and plate

Waiver of Vermont Department of Motor Vehicles Fees for Eligible Disabled Veterans

Vermont provides specific vehicle-related exemptions when a qualifying Veteran acquired a vehicle with VA financial assistance, including qualifying replacement vehicles. Registration relief under 23 VSA 378 requires Vermont residency and separation other than dishonorable; the driver-license fee exemption under 23 VSA 609 requires a resident honorably discharged Veteran who otherwise qualifies. Purchase-and-use tax has its own exemption under 32 VSA 8911(14). VAForm 21-4502 is specified as evidence. VA-paid adaptations alone should not be assumed to waive every registration, licensing or vehicle tax.

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