Vermont income tax is based on Federal taxable income. If you are required to report the income on your Federal income tax return, it is also taxable in Vermont unless specifically exempted through Vermont law. If you claim Vermont as your state of domicile, you are considered a resident. 32 V.S.A. §3802(11)
The first $10,000 of appraisal value (up to $40,000 by a vote of the town for the municipal portion) of the established residence of a qualifying veteran, his or her surviving spouse or child is exempt if:
- the residence is owned in fee simple by one or jointly and;
- written application for the exemption is filed with the Vermont Office of Veterans Affairs (VOVA) before May 1.
VOVA provides veterans with an application for the exemption and notifies towns on a monthly basis from mid-February to mid-May of eligible applicants. The Listers will verify ownership of property for eligibility as a qualifying veteran. Veterans must be receiving one of the following:
- Death compensation, or
- dependence and indemnity compensation, or
- a disability pension paid thru the veteran's administration or any military department, or
- disability compensation (at least 50% disability).
The widow or widower of a veteran who was qualified for the exemption at the time of his or her death still qualifies for the exemption.
For questions regarding the application process and eligibility contact:
Vermont Office of Veterans Affairs
118 State Street
Montpelier, Vermont 05620-4401
Telephone: (802) 828-3379
Toll Free: (888) 666-9844
Fax: (802) 828-5932