Exemption for Military Retirement Income

Vermont allows retirees to exclude the first $10,000 of income from military retirement. Retirees are eligible for this exemption if their income falls below the thresholds for the Social Security exemption.

Note: A taxpayer can only claim one of the following exemptions, even if more than one applies: Social Security Exemption; Military Retirement Exemption; Civil Service Retirement System Exemption; Other Retirement System Exemption.