Military retirement and state taxes
Usually tax-free. Vermont exempts military retirement pay if your income is $125,000 or less, with a partial break up to $175,000.
Vermont Air National Guard (Burlington) · Camp Johnson (Vermont National Guard)
VA loans in Vermont
Can you use a VA loan in Vermont?
Yes. You can use a VA loan anywhere in Vermont, from Burlington to Montpelier. Vermont gives military retirees a partial tax break on their retirement pay. We lend in Vermont and help military families buy across the state, including Guard and Reserve families.
Good to know
What's different about buying in Vermont
Property tax help for disabled Veterans
Vermont lets towns exempt up to $40,000 of a disabled Veteran's home value. Apply through your local tax office after you move in.
Rural homes work with VA too
Plenty of Vermont homes have wells, septic and older heating systems. VA loans work fine as long as the property meets VA standards.
Tax rules shown are general and current as of October 2026. Confirm the details with your county or the state before you rely on them.
PCSing to Vermont?
Bases I help families buy near
Wherever your orders say, we lend there. Here's where families usually look.
- Vermont Air National Guard (Burlington)South Burlington, Williston, Essex
- Camp Johnson (Vermont National Guard)Colchester, Winooski
Vermont questions
Straight answers
Does Vermont tax military retirement pay?
Usually tax-free. Vermont exempts military retirement pay if your income is $125,000 or less, with a partial break up to $175,000. VA disability compensation isn't taxed.
What property tax breaks do disabled Veterans get in Vermont?
Vermont lets towns exempt up to $40,000 of a disabled Veteran's home value. Rules and amounts can change, so confirm with your local tax office.
Can I use a VA loan anywhere in Vermont?
Yes. VA loans work in cities, suburbs and rural areas across Vermont, as long as the home will be your main residence and meets VA property standards. We lend statewide, so we can help wherever you're buying.
Get started
Buying in Vermont? Let's talk.
One person on our team will confirm you qualify, show you what you can afford and walk you through every step. No cost, no pressure.