Vermont Income Tax Exemption for Combat Zone Pay

Vermont Department of Taxes

Full exemption from Vermont income tax on federally exempt combat zone pay

Military pay you earn while serving in a combat zone is exempt from Vermont income tax whenever it is exempt from federal income tax.

Check eligibility

How to apply

There is nothing to apply for. Leave your combat zone pay out of the income you report on your Vermont return, the same way you leave it off your federal return.

What you'll need

Your Leave and Earnings Statements or orders showing your combat zone service dates.

Eligibility

You are a Vermont resident filing a Vermont income tax return
You received military pay for service in an area designated as a combat zone
The pay is exempt from federal income tax

Source

Official source

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