Vermont Disabled Veteran Property Tax Exemption (2026)

Vermont's disabled veteran property tax exemption takes at least $10,000 off the appraised value of an eligible veteran's home, which lowers the value that gets taxed, not the bill itself.1

The exemption comes from state law, 32 V.S.A. § 3802(11), and two details matter most for Vermont families. First, a Vermont town can vote to raise its veterans' exemption above the $10,000 statutory amount, up to $40,000 of appraisal value, so the exemption level varies from town to town. Second, a Vermont veteran or surviving spouse claims the exemption by filing with the Vermont Office of Veterans Affairs, a state office, and the paperwork is due before May 1.1

In This Guide

• Key Takeaways
• Do You Qualify for the Vermont Disabled Veteran Property Tax Exemption?
• How Much Is the Vermont Veterans' Exemption Worth?
• Can a Surviving Spouse Keep the Exemption?
• How to Apply for the Vermont Disabled Veteran Property Tax Exemption
• Renters, Rental Units, and One Exemption per Property
• Apply for Vermont's Property Tax Credit Too
• Where to Get Help in Vermont
• Frequently Asked Questions
• Learn More

Do You Qualify for the Vermont Disabled Veteran Property Tax Exemption?

Two things have to line up: the right kind of VA or military payment, and the right kind of home. The statute is the governing text, so it's the place to start.

Vermont's veterans' exemption, set out in 32 V.S.A. § 3802(11), applies to a home "occupied as the established residence of and owned in fee simple by a veteran, the veteran's spouse, widow, widower, or child, or jointly by any combination of them, if one or more of them are receiving disability compensation for at least 50 percent disability, death compensation, dependence and indemnity compensation, or pension for disability paid through any military department or the Veterans Administration."1 In Vermont's veterans' property tax exemption, the 50 percent rating threshold applies only to disability compensation; death compensation, dependency and indemnity compensation, and a pension for disability are listed in 32 V.S.A. § 3802(11) as separate qualifying payments.1

The Vermont Office of Veterans Affairs, which handles the applications, publishes its own list of who is eligible for the Vermont disabled veteran property tax exemption.1

The Office of Veterans Affairs' list and the statute point the same way: a Vermont veteran on VA Improved Pension, or collecting permanent military retirement pay for a medical retirement, appears on the Office's eligibility list as a separate route from the 50% disability compensation rating.1

The home itself has to qualify, too. The Office of Veterans Affairs states that the Vermont veterans' exemption "only applies to homes that are owned by the veteran or survivor; and is their primary residence."1 A second home or a camp you don't live in isn't covered.

How Much Is the Vermont Veterans' Exemption Worth?

Start with what the exemption actually changes. Vermont's veterans' exemption is measured in appraisal value: 32 V.S.A. § 3802(11) exempts property "to the extent of $10,000.00 of appraisal value."1 The Office of Veterans Affairs puts it plainly: the Vermont veterans' exemption "reduces the appraised value of the home prior to the assessment of taxes."1 So the dollar savings on your bill is the tax that would have been charged on the exempted slice of value, which depends on your town's tax rates. Vermont's veterans' exemption is not $10,000 off the tax bill.

Why the amount depends on your town

The $10,000 in Vermont's veterans' exemption is a floor, not a fixed number. Under 32 V.S.A. § 3802(11), "By majority vote of those present and voting at an annual or special meeting warned for the purpose, a town may increase the veterans' exemption under this subdivision (11) to up to $40,000.00 of appraisal value."1 A Vermont town's voted increase stays in effect for future taxable years until it is amended or repealed by a similar vote.1

That's why the Office of Veterans Affairs says "The exemption level varies from town to town."1 Don't assume your town has raised its exemption above $10,000, and don't assume it hasn't. Your town can tell you what level its voters have adopted, and that number, together with your town's tax rates, is what decides your actual savings.

Can a Surviving Spouse Keep the Exemption?

Yes, when two conditions are met. Vermont's statute answers the question directly: "An unremarried widow or widower of a previously qualified veteran shall be entitled to the exemption provided in this subdivision (11) whether or not the individual is receiving government compensation or pension."1

Two conditions sit inside that sentence. The veteran must have been previously qualified for the Vermont veterans' exemption, and the surviving spouse must not have remarried. An unremarried surviving spouse of a veteran who had qualified keeps Vermont's veterans' exemption even without a VA payment of their own. The Office of Veterans Affairs' eligibility list says the same thing in shorter form: "Surviving spouses of veterans who had received the exemption."1 The home rules still apply, so the survivor must own the home and live in it as a primary residence.

How to Apply for the Vermont Disabled Veteran Property Tax Exemption

The Vermont disabled veteran property tax exemption is claimed through a state office, the Vermont Office of Veterans Affairs. Under 32 V.S.A. § 3802(11), before May 1 of each year, a written application and a written statement from the Military Department or the Veterans Administration showing that the compensation or pension is being paid must be filed with the Vermont Office of Veterans Affairs.1

The Vermont Department of Taxes' fact sheet on property tax assistance for veterans (FS-1003) breaks the filing into steps:1

Timing matters. The Vermont Office of Veterans Affairs says veterans "will have to provide proof of eligibility every year before May 1st."1 Put a reminder on the calendar for early spring, since the statement showing your payments has to be filed again each year.

The one-time filing for permanent disability

There is one important exception to the yearly filing. Under 32 V.S.A. § 3802(11), an application for the Vermont veterans' exemption based on permanent disability only has to be filed with the Office of Veterans Affairs before May 1 of the first year the exemption is sought, and the exemption then stays on the grand list until title to the property is transferred.1 The Office of Veterans Affairs describes the same rule: veterans "determined to be totally and permanently disabled only have to provide proof of eligibility one time."1

If you missed the 2026 deadline

As of September 25, 2026, the Vermont Office of Veterans Affairs' property tax exemption page states: "Applications for the 2026 tax year are no longer accepted."1 If you're just learning about the exemption now, the practical step is to gather your Summary of Benefits Letter and the form well ahead of May 1 for the next tax year.

Renters, Rental Units, and One Exemption per Property

The Vermont veterans' exemption follows ownership and residence, so a few situations fall outside it.

• Renters: The Office of Veterans Affairs states that Vermont "Veterans or survivors who rent their homes cannot pass this exemption on to their landlord."1
• Business or rental space: 32 V.S.A. § 3802(11) excepts "any part used for business or rental," so an apartment you rent out or a shop in the building is not covered by the Vermont veterans' exemption.1
• Two qualifying owners: Vermont's statute says "Only one exemption may be allowed on a property," so a home owned jointly by two eligible people still gets a single veterans' exemption.1

Apply for Vermont's Property Tax Credit Too

The veterans' exemption is not Vermont's only property tax help, and the state says to pursue both. The Vermont Department of Taxes' fact sheet says: "Veterans and their families are encouraged to apply for the Property Tax Exemption, the Property Tax Credit, and any Income Tax credits offered by the State of Vermont."1

The Vermont Property Tax Credit is income-based and open to Vermont homestead owners of any age, and it is claimed on Form HS-122 with Schedule HI-144. For tax year 2025, the Vermont Department of Taxes gives the maximum household income for the Property Tax Credit as $115,400.2 Its eligibility rules and deadlines are different from the veterans' exemption, and our guide to Vermont senior property tax relief walks through them.

Where to Get Help in Vermont

The Vermont Office of Veterans Affairs is the office that receives the exemption applications, so it is the right first call with questions about eligibility or your paperwork. The Vermont Department of Taxes' fact sheet lists the Office of Veterans Affairs' number for more information as 802-828-3379.1

If the property tax exemption is one piece of a bigger picture, such as paying for care for an aging veteran parent, our overview of VA benefits you can use for senior care in Vermont is a good next read.

Learn More

Find personalized help claiming Vermont's disabled veteran property tax exemption at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.