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Vermont’s small population includes almost 10,000 veterans receiving VA disability, and the state offers a generous range of benefits set aside specifically for them.

The biggest dollar-value benefit for disabled veterans is the Vermont Property Tax Exemption, which reduces the appraised value of a primary residence by between $10,000 and $40,000 for veterans rated 50% or higher.

Vermont also offers free permanent hunting and fishing licenses to veterans with a 60% or higher service-connected rating, and free VA nursing home care to veterans rated 70% or higher.

If you’re not sure what you’re entitled to receive, based on your rating or your family’s situation, this guide is for you. It explains the requirements for the VA disability benefits available in Vermont and how to access them.

Tax Exemptions and Financial Assistance

Do Disabled Veterans Pay Property Taxes in Vermont?

Eligible disabled veterans in Vermont receive a property tax exemption that reduces the appraised value of their primary residence by between $10,000 and $40,000. State law sets a mandatory $10,000 minimum exemption in every town, and individual towns can vote to raise the exemption up to $40,000.

The exemption only applies to a home that is owned and occupied by the veteran or surviving spouse; renters cannot pass the benefit to a landlord.

Who Qualifies

  • Veterans receiving VA disability compensation at a rating of 50% or higher
  • Veterans receiving Non-Service Connected Pension (Improved Pension)
  • Veterans collecting permanent military retirement pay for a medical military retirement
  • Surviving spouses of veterans who had received the exemption (may also be eligible for DIC or Death Pension)

How to Apply

Veterans must provide proof of eligibility from the U.S. Department of Veterans Affairs to the Vermont Office of Veterans Affairs by May 1 each year. Veterans determined to be totally and permanently disabled only need to provide proof the first year (unless they move to a home in a different town). Find out more from the Vermont Office of Veterans Affairs Tax Exemptions page.

Does Vermont Tax Military Retirement Pay?

No, in most cases. In May 2025, Vermont enacted Act 71, which excludes military retirement pay from Vermont taxable income. The exclusion amount is subject to the taxpayer’s federal adjusted gross income (AGI), and taxpayers who also receive Social Security income may elect only one exclusion (Social Security or military retirement, not both).

VA disability compensation is federally tax-exempt and is not included in Vermont taxable income.

Vermont Veteran Assistance Fund

The Vermont Office of Veterans Affairs administers a one-time emergency payment of up to $500 to low-income Vermont veterans (and their families) facing a financial crisis, such as needing help with housing or utilities. Vermont residency is required.

Applications are taken over the phone: call (802) 828-3379 or toll-free in VT at (888) 666-9844. Find out more about Vermont emergency financial assistance for veterans.

Housing Assistance

VA Home Loans

Vermont veterans qualify for the federal VA Home Loan Guaranty program (no down payment, no PMI). Veterans with a service-connected disability are exempt from the VA funding fee, which typically saves several thousand dollars on a home purchase.

Home and Vehicle Modification Grants

Disabled veterans in Vermont can access two federal VA programs that pay to modify a home to accommodate a service-connected disability. The Specially Adapted Housing (SAH) grant provides up to $126,526 and the Special Housing Adaptation (SHA) grant provides up to $25,350 in FY2026. Find out more about Vermont home and vehicle modification benefits.

Transitional Housing and Homeless Programs for Veterans

Vermont operates four long-term transitional housing programs specifically for veterans. These are not emergency shelters; they require an application and typical stays range from six months to more than a year, with case management, addiction support, and help connecting to VA benefits and employment.

  • Canal Street Veteran Housing in Winooski | (802) 864-7402
  • The Dodge House in Rutland | (802) 775-6772
  • Veterans Inc. in Bradford | (866) 627-7838
  • The Veterans Place in Northfield | (802) 485-8874 | 18-bed Grant-Per-Diem transitional home

Supportive Services for Veteran Families (SSVF)

SSVF at UVM is a VA-funded program that serves very low-income veteran families (under 80% of Area Median Income) who are homeless or facing homelessness within 30 days. The program covers all 13 Vermont counties plus Clinton County, NY.

Services include rapid rehousing, homelessness prevention, case management, financial counseling, legal services, SOAR (SSI/SSDI assistance), and VA benefits and employment navigation. Call (802) 656-3232 or toll-free (844) 820-3232.

The White River Junction VA Medical Center Homeless Coordinator at (802) 295-9363, Ext. 6939 can also connect veterans to VA-funded HUD-VASH housing vouchers and additional homeless services. Find out more about Vermont homeless veteran programs.

Transportation Benefits

Do Disabled Veterans Pay Sales Tax on Vehicles in Vermont?

Only a narrow group of disabled veterans is exempt from Vermont vehicle taxes and fees. Per Vermont DMV military and veteran benefits and 32 V.S.A. § 8911, the exemption applies only to disabled veterans whose vehicle was modified to accommodate the disability and where the U.S. Department of Veterans Affairs paid for the modification.

Eligible veterans pay no vehicle sales/use tax, no registration fee, and no license fee. All other veterans, including 100% disabled veterans, are not exempt.

The VA also provides a one-time automobile allowance of up to $27,074.99 (FY2026) toward the purchase of a vehicle for veterans with qualifying service-connected disabilities such as loss or permanent loss of use of a hand or foot, and separate adaptive-equipment grants for hand controls, lifts, or other modifications.

Disabled Veteran License Plates in Vermont

Vermont issues a Disabled Veteran license plate to veterans with a service-connected disability. The application requires the Vermont Certificate of Veteran Status (Form VG-168), certified by the Vermont Office of Veterans Affairs, plus a completed DMV Universal Medical Evaluation/Progress Report (Form VS-113) signed by a physician, certified PA, or APRN.

The plate identifies the vehicle as belonging to a disabled veteran and may also be used in combination with a handicapped placard (issued separately for veterans who meet the medical mobility criteria).

VETERAN Designation on Driver’s License

Per 23 V.S.A. § 610, the Vermont DMV adds a VETERAN designation to the front of a driver’s license or non-driver ID at no additional charge. Verification of service is completed by the Vermont Office of Veterans Affairs.

DAV Transportation Network

The Disabled American Veterans (DAV) Transportation Network operates roughly 20 vans that take Vermont veterans to medical appointments at the White River Junction VA, free of charge. To schedule a ride, contact the WRJ hospital service coordinator at 817-730-0401, or work through the local DAV service officer at (802) 296-5167.

Education Benefits

What Tuition Assistance Can Veterans Get in Vermont?

Vermont does not have a state-funded tuition waiver or scholarship program specifically for disabled veterans or their dependents. Most Vermont veterans use the GI Bill and other federal VA education benefits to pay for college, certificate, or trade-school programs.

Find out more about Vermont veteran education benefits

The Vermont Office of Veterans Affairs Education Consultant can help map out the best mix of federal and state benefits.

VA Vocational Rehabilitation

Disabled Vermont veterans typically qualify for VA Vocational Rehabilitation & Employment (Chapter 31) with a service-connected disability rating of 20% or higher. Veterans rated at 10% also qualify if the disability poses a significant employment handicap.

The VA pays for a college or training program with a clear employment goal and provides a monthly subsistence stipend while the veteran is enrolled. Find out more about Vermont vocational rehabilitation.

Employment Benefits

Vermont State Veterans Hiring Preference

Under 3 V.S.A. § 310(f) and 20 V.S.A. § 1543, Vermont adds preference points to the exam scores of veterans applying for state government jobs. Veterans must have served 90 days or more in the U.S. Armed Forces and have an honorable (or other acceptable) discharge.

Additional preference points are added for: a veteran with a service-connected disability, the spouse of a totally disabled veteran with a service-connected disability, and the unmarried surviving spouse of a veteran. Find out more about Vermont veterans hiring preference.

Disabled Veterans Outreach Program (DVOP)

The Vermont Department of Labor staffs Disabled Veterans Outreach Program (DVOP) representatives at 12 regional Career Resource Centers statewide and at the White River Junction VA.

DVOPs work directly with disabled veterans and veterans with significant barriers to employment, providing assessments, resume help, training referrals, and job placement. Find out more about Vermont employment assistance for veterans.

Disabled Veteran-Owned Business Contracting

By federal law, 3% of all federal contracts must go to service-disabled veteran-owned small businesses (SDVOSBs). Vermont disabled veterans starting or growing a business can pursue verification through the federal Veterans Small Business Certification program and tap state-level help from the Vermont Small Business Development Center at (802) 728-9101. Find out more about Vermont veteran business development.

Recreation Benefits

Do Vermont State Parks Offer Free Entry to Disabled Veterans?

Vermont does not have a disabled-veteran-specific free state park pass, but all honorably discharged Vermont veterans qualify for the Green Mountain Passport: a $2 lifetime pass that provides free day-use entry to Vermont State Parks, state historic sites, and fully state-sponsored events.

The pass is sold only at local town clerk offices, not at the parks themselves. Vermont residents who are veterans of any branch with an honorable discharge are eligible regardless of disability rating.

Do Vermont Disabled Veterans Get a Free Fishing License?

Yes. A Vermont resident who is, or ever has been, 60% or more disabled due to a service-connected disability may receive a free permanent fishing license from Vermont Fish & Wildlife. The benefit is permanent (no annual renewal) and is issued on the basis of a VA Summary of Benefits letter. Find out more from Vermont Fish & Wildlife.

Does Vermont Offer a Disabled Veteran Hunting License?

Yes, under the same 60% threshold. A Vermont resident veteran with a service-connected disability rating of 60% or higher may receive a free permanent hunting license or a free permanent combination hunting/fishing license.

Non-resident veterans from Maine and New Hampshire at the 60% threshold may receive a free one-year reciprocal hunting, fishing, or combination license.

How to Apply

  • Request a VA Summary of Benefits letter from the U.S. Department of Veterans Affairs showing the 60% (or higher) service-connected disability rating.
  • Submit the verification letter and a complete and signed VT Sporting License Application form to the Vermont Fish & Wildlife Department at 1 National Life Dr. Dewey Bldg, Montpelier, VT 05620-3208.
  • Once issued, the permanent license does not require annual reapplication.

Healthcare Benefits

Vermont’s primary VA healthcare hub is the White River Junction VA Medical Center at 163 Veterans Drive, White River Junction, VT 05001. Phone: (802) 295-9363..

The WRJ system delivers care across seven Community-Based Outpatient Clinics (CBOCs): Bennington, Brattleboro, Burlington Lakeside, Newport, and Rutland in Vermont, plus Keene and Littleton in New Hampshire. CBOCs handle primary care, mental health services, and many specialty clinics, including treatment for conditions like traumatic brain injury.

Free VA Nursing Home Care for Disabled Veterans

Veterans who are 70% service-connected disabled or higher may stay at VA-operated nursing homes free of charge. Veterans at the same 70% threshold can also receive free care at participating community nursing homes, with the VA paying the bill directly. Find out more about Vermont long-term care benefits for veterans.

Vermont Veterans’ Home and Nursing Facilities

The state-run Vermont Veterans’ Home at 325 North Street, Bennington is a 130-bed skilled nursing facility that admits honorably discharged veterans, their spouses, and Gold Star parents.

The Home provides 24/7 RN-supervised skilled nursing, a certified Alzheimer’s/dementia unit, physical, occupational, and speech therapy, respite care, podiatry, dental, and end-of-life and hospice care. It accepts Medicare, Medicaid, and private insurance.

Aid and Attendance

Eligible disabled veterans and their surviving spouses may also qualify for the federal Aid and Attendance benefit, a monthly cash supplement on top of VA pension, if the veteran requires help with daily living, is bedridden, is in a nursing home due to incapacity, or is blind/nearly blind. Call the White River Junction VA Regional Office at (802) 296-5177 to start an application.

Burial and Survivor Benefits

Vermont operates one state veterans cemetery, the Vermont Veterans Memorial Cemetery, located at 367 Furnace Road, Randolph Center, VT.

Eligible veterans receive free perpetual care of their lot, a marker, and military funeral honors. Spouses and some dependents are also eligible for burial; perpetual care of a spouse’s lot and marker is provided for a nominal charge.

Burials must be scheduled by phone at (802) 828-3379. Casket burials are conducted Tuesday–Friday and urn burials Monday–Friday at 9 a.m., 11 a.m., or 1 p.m. No weekend burials are offered.

The Vermont National Guard Honor Guard performs at more than 300 funerals each year, providing a gun salute, flag folding, flag presentation, and Taps. Families may request honors at (802) 338-3490. See all Vermont mortuary and burial benefits.

If a veteran was 100 percent disabled at the time of death, the surviving spouse can continue to receive the Vermont property tax exemption as long as they own and occupy the home as their primary residence. Learn more about survivor benefits.

Federal Benefits Available to Vermont Veterans

In addition to Vermont’s specific benefits, disabled veterans also get a wide range of federal VA disability benefits, including:

  • Monthly tax-free compensation payments based on disability rating (calculate it here)
  • Medical care, including mental health services and counseling
  • Home loans and housing benefits
  • Vocational rehabilitation and employment services
  • Education benefits through the GI Bill
  • Survivor benefits
  • Federal hiring preference

Eligibility for some of these benefits depends on the disability rating percentage. Use the links below to see what federal benefits disabled veterans can get with a rating of 50%, 60%, 70%, 80%, etc.

100% Disabled Veteran Benefits

Vermont veterans with a 100% disability rating receive the highest level of federal VA benefits, including:

  • Full monthly VA compensation
  • Full VA healthcare coverage
  • Dental care
  • Adaptive equipment grants

See all federal benefits for a 100% disabled Vermont veteran →

100% Disabled Veteran Benefits for Spouse and Dependents

Spouses and family members of 100% disabled veterans may also be able to get several benefits:

  • CHAMPVA healthcare
  • DIC eligibility
  • Education benefits
  • Continued property tax exemption
  • Access to Vermont state resources

Benefits for Toxic Exposure

Veterans who served at contaminated military bases or who were exposed to Agent Orange, burn pits, or other environmental hazards may qualify for additional VA benefits. Bases in or near Vermont with documented contamination concerns include:

  • Burlington Air National Guard Base (South Burlington, VT), with PFAS contamination from decades of AFFF firefighting foam use
  • Plattsburgh Air Force Base (Plattsburgh, NY), just across Lake Champlain, with documented PFAS and other contamination

If you served at a different base or in a different state, check its history of toxic contamination and potential health effects using the Military Base Toxic Exposure Map or get in touch with us for a free evaluation of your claim.

Getting VA Disability in Vermont

How to Apply for VA Benefits – Free Guide

Attorney Matthew Hill has written THE book on how to get VA disability compensation and benefits. And it’s yours free of charge. We also offer a free ebook for easy, immediate access.

Vermont State Assistance and Resources

Getting through the VA disability claims process can be tricky, but there are local and national resources to help guide you. These resources include local veteran groups, state-supported VA services, and experienced disability attorneys.

Help from Experienced Lawyers

Our VA-accredited lawyers proudly represent Vermont veterans who were denied or underrated by the VA, with no upfront costs. Contact us for a free evaluation, even if we don’t take your case, we’ll point you in the right direction!