An act relating to exempting Social Security income from income tax

This bill would exempt Social Security income from Vermont state income tax for eligible residents. It directly affects Vermonters who receive Social Security benefits and pay state income tax. The law establishes income thresholds where lower-income taxpayers receive full exemptions, while those with higher incomes receive partial exemptions based on a sliding scale. Single filers qualify for full exemption with federal adjusted gross income of $50,000 or less, and married couples filing jointly qualify with income of $65,000 or less. The exemption applies retroactively to January 1, 2024, and continues for future taxable years.