What is Vermont's military retirement and survivor benefit income exemption?

If your Vermont income is under $125,000, Vermont will not tax any military retirement pay or Survivor Benefit Plan (SBP) payments. If your Vermont income is between $125,000 and $175,000, part of that income will not be taxed; the untaxed amount goes down as income rises above $125,000. Our software calculates any partial amount automatically and shows it on the state summary screen and on Line 13 of Vermont Form IN-112 Part I.