What is the Vermont Retirement Income Exemption?

If you have taxable Social Security benefits or retirement income from the State or Federal Government, or the Civil Service, Vermont allows some or all of it to be subtracted from your Vermont income.

If you have taxable Social Security benefits, we'll automatically calculate your exemption based on your federal taxable Social Security income.

If you received any of the following retirement income, enter that income so we can calculate your allowed exemption amount:

• Civil Service retirement income
• income received from a contributory annuity, pension, or endowment
• U.S. government or state government retirement income

Only one exclusion can be elected per year (we'll choose the higher exemption for you to maximize your return).