Budget & Taxes (Income Tax)

introduced · Vermont · House Feb 13, 2026

H 900: An act relating to the exemption of Social Security benefits from Vermont income tax

This bill (H.900) would exempt all Social Security benefits from Vermont's personal income tax. It directly affects Vermont residents who receive Social Security benefits, including retirement, disability, or survivor payments. The key provision removes the state tax liability on these benefits, meaning recipients would no longer pay Vermont income tax on that income. The bill aims to provide tax relief for this specific group of Vermonters.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts Social Security benefits from state income tax, providing direct tax relief to recipients, aligning with support indicators for tax relief to lower-income groups.90% confidence

Sub-Topics Income Tax

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introduced · Vermont · House Feb 4, 2026

H 878: An act relating to Vermont income and education property taxes

This bill exempts Social Security benefits from Vermont's state income tax for most recipients, based on income levels. It fully excludes benefits for single filers earning under $55,000 or married couples filing jointly earning under $70,000 annually, with partial exemptions for higher earners up to $65,000 (single) or $80,000 (married). Additionally, it caps annual property tax increases at 1% for all homeowners. The policy directly affects Vermont residents receiving Social Security benefits and homeowners, aiming to reduce tax burdens for low- to moderate-income seniors and households.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts Social Security benefits from income tax for lower/middle-income earners ($55k/$70k thresholds), providing direct tax relief per Budget & Taxes indicators.95% confidence

Sub-Topics Income Tax Property Tax

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introduced · Vermont · House Jan 21, 2026

H 732: An act relating to new income tax brackets

H.732 establishes two new income tax brackets for higher earners in Vermont. Individuals would pay an additional 1% tax on income between $200,000-$400,000 and above $400,000, while married couples filing jointly would pay the extra rate on income between $400,000-$800,000 and above $800,000. The revenue generated would fund an expanded property tax credit specifically for Vermont households with annual income below $115,000. This directly affects high-income taxpayers through new tax rates and low-to-moderate-income households via increased credit support.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases taxes on high earners ($200k+/individual) to fund property tax credit for households under $115k, providing targeted tax relief for lower-income groups.90% confidence ✓ HousingSupports HousingFunds property tax credit for households under $115k, directly increasing housing affordability through tax relief for low-to-moderate income residents.85% confidence

Sub-Topics Income Tax Property Tax Tax Credits Property Taxes

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introduced · Vermont · House Jan 8, 2026

H 621: An act relating to personal income tax brackets

This bill creates two new personal income tax brackets in Vermont, applying a 11.75% tax rate to higher income levels. Specifically, it adds a bracket for married couples filing jointly with taxable income over $500,000 but not over $1,000,000, and a separate bracket for heads of households with income over $455,300 but not over $910,600. These changes directly affect high-income Vermont residents whose earnings fall within these new ranges. The bill modifies existing tax tables to adjust the rate structure for the top earners, maintaining the 13.75% rate for even higher income levels.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases tax rates on high-income earners (11.75% for $500k+ couples), strengthening state revenue collection for fiscal management.95% confidence

Sub-Topics Income Tax

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introduced · Vermont · House Jan 7, 2026

H 584: An act relating to excluding public safety pension and survivor benefit income from income taxation

This bill (H.584) amends Vermont's tax code to exclude income from public safety pensions and survivor benefits from state income taxation. It directly affects Vermont police officers, firefighters, and emergency medical technicians (EMTs), as well as their survivors, by removing this income from taxable earnings. The key mechanism adds a specific exclusion to Vermont's definition of "taxable income" under 32 V.S.A. § 5811(21)(B)(vii), ensuring these benefits are not included in the calculation of state income tax. The change takes effect retroactively for taxable years beginning January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes public safety pensions from state income tax, providing direct tax relief for middle-income officers/EMTs per tax relief indicators in Budget & Taxes.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExcludes public safety pension/survivor benefits from state taxes, increasing post-retirement income for police/firefighters/EMTs (key worker group) by expanding tax-exempt benefits.95% confidence

Sub-Topics Income Tax Pensions

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introduced · Vermont · Senate Jan 27, 2026

S 308: An act relating to the military retirement income tax exclusion

This bill (S 308) removes income-based limits for excluding U.S. military retirement and survivor benefit income from Vermont income tax. Currently, Vermont taxpayers with federal adjusted gross income (AGI) over $125,000 see partial or no exclusion, but this bill would fully exclude all such military retirement income regardless of income level. It affects Vermont residents receiving military retirement pay, changing the tax treatment from a tiered system to a flat exclusion. The change applies retroactively to tax years beginning January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves income limits on military retirement tax exclusion, providing tax relief for affected residents by expanding the exclusion without income thresholds.90% confidence ✓ VeteransSupports VeteransRemoves income limits on military retirement tax exclusion, expanding tax benefits for veterans regardless of income level.95% confidence

Sub-Topics Income Tax

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introduced · Vermont · House Jan 30, 2026

H 845: An act relating to an income tax deduction for the purchase of snow tires

H.845 would create a Vermont personal income tax deduction for residents who purchase snow tires for their personal vehicles. This deduction would allow taxpayers to subtract the full cost of qualifying snow tires from their taxable income when filing state taxes. The bill directly affects Vermont taxpayers who buy snow tires, reducing their state tax liability by the amount spent on the tires. It does not specify a maximum deduction amount or additional eligibility requirements beyond the purchase of snow tires for personal use.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax deduction reducing state tax liability for snow tire purchases, providing direct tax relief to residents without specifying wealth-based exclusions.95% confidence

Sub-Topics Income Tax

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introduced · Vermont · House Jan 8, 2026

H 619: An act relating to an income tax surcharge

H.619 proposes a 3% income tax surcharge on Vermont residents with federal adjusted gross income of $1 million or more, directly affecting high-income earners. The surcharge applies in addition to existing income tax and will automatically adjust for inflation each year to maintain the $1 million threshold. It takes effect retroactively for tax years beginning January 1, 2026. This bill creates a new tax obligation for individuals earning over $1 million annually, with no changes to other tax rates or brackets.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 3% income tax surcharge on high earners ($1M+ AGI), increasing state revenue from top earners to fund budget priorities without affecting lower/middle income tax rates.95% confidence

Sub-Topics Fees & Licensing Income Tax

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introduced · Vermont · House Jan 22, 2026

H 759: An act relating to a flat income tax

H.759 proposes replacing Vermont's current complex tax system - including income, sales, property, and estate taxes - with a single flat income tax. It would repeal 12 existing tax types (like education property tax, sales tax, and estate taxes) and simplify tax filing for all Vermont residents and businesses. The bill includes targeted relief for low-income households and rural communities to offset potential regressive impacts, while aiming to fund essential services like education and infrastructure through the new system. This change would affect every Vermont taxpayer subject to income tax, with specific adjustments to taxable income calculations outlined in the bill.

Topics ✓ Budget & TaxesSupports Budget & TaxesReplaces complex taxes with flat income tax, includes low-income relief, and funds education/infrastructure per summary.90% confidence

Sub-Topics Business Taxes Income Tax Property Tax

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introduced · Vermont · House Jan 8, 2026

H 603: An act relating to excluding military disability retirement from personal income taxation

This bill (H.603) excludes U.S. military disability retirement income from Vermont's personal income tax. It directly affects Vermont veterans receiving military disability retirement pay under 10 U.S.C. chapter 61. The bill provides full exclusion for taxpayers with federal adjusted gross income under $125,000, partial exclusion for incomes between $125,000-$175,000 (proportional to income above $125,000), and no exclusion for incomes of $175,000 or more. The change applies retroactively to taxable years beginning January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes military disability retirement from state income tax, providing tax relief for veterans with income under $125k, aligning with tax relief indicators for middle-income groups.95% confidence ✓ VeteransSupports VeteransExcludes military disability retirement from state income tax, providing direct financial relief to Vermont veterans. Directly advances veteran financial benefits.95% confidence

Sub-Topics Income Tax Veteran Benefits

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