Vermont disabled veteran property tax exemption (2026)
At least $10,000 exempt at 50%+; towns can raise it to $40,000.
See your true monthly cost in Vermont →
Free. Applies your rating, VA pay and this exemption to any home.
Property tax break by VA rating
| VA rating | Property tax break | Saves / yr* |
|---|---|---|
| 10–40% | No statewide exemption | — |
| 50–90% | $10,000 of value exempt | $171 |
| 100% or IU | $10,000 of value exempt | $171 |
*Example: a $400,000 home at Vermont's average property tax rate of 1.71%, about $6,840 a year before any exemption. Your bill depends on your county and home. IU means paid at the 100% rate for individual unemployability. P&T means permanent and total. Exemptions aren't automatic: you apply with your county assessor after you buy.
Military retirement pay
Military retirement partly taxed. Fully exempt with AGI up to $125,000, phasing out by $175,000.
VA disability pay is tax-free in every state.
Home loan and down payment help
- Vermont Housing Finance Agency ↗ (state housing agency: first-time buyer and down payment programs)
Programs change often. Check income limits, first-time buyer rules and whether they can be combined with a VA loan.
Get help in Vermont
- Vermont Office of Veterans Affairs ↗: free help with state veteran benefits.
- Your county assessor's office handles the property tax exemption application.