Vermont bill proposes to exempt military retirement and survivor benefit income from state income tax.

Vermont S0017 amends state tax law to exempt military retirement and survivor benefit income from Vermont income tax. This change applies to income received from a contributory annuity, pension, endowment, or retirement system of the U.S. government, Vermont, or another state. The bill also specifies that taxpayers eligible for multiple exclusions must elect only one. The amendments take effect retroactively on January 1, 2026, applying to taxable years starting from that date.

Vermont bill proposes to exempt military retirement and survivor benefit income from state income tax.

Vermont S0017 amends state tax law to exempt military retirement and survivor benefit income from Vermont income tax. This change applies to income received from a contributory annuity, pension, endowment, or retirement system of the U.S. government, Vermont, or another state. The bill also specifies that taxpayers eligible for multiple exclusions must elect only one. The amendments take effect retroactively on January 1, 2026, applying to taxable years starting from that date.