May 2025: Joe Major Speaks Out In Favor of Tax Exemptions for Veterans Benefits

Senator Joe Major of Vermont was a vocal proponent for ending the state's taxation on military pensions and survivor benefits. He co-sponsored and advocated for legislation designed to eliminate this tax burden in order to honor veterans and improve military workforce retention.

This advocacy resulted in a major policy shift. In May of 2025, Lawmakers passed and the governor signed Act 71 (formerly S. 51), which introduced the following tax benefits for veterans:

• Full Exemption: Veterans and survivors with a federal adjusted gross income (AGI) of ($125,000) or less receive a full tax exemption on military retirement and survivor benefit income.

• Partial Exemption: For those with an AGI between ($125,000) and ($175,000), the exempt amount tapers off as income increases.

• Veterans Credit: Low-income veterans (AGI under ($25,000) with honorable discharges qualify for a ($250) refundable tax credit.

• Exclusion Rule: Taxpayers receiving both military retirement and Social Security may only select one of these exclusions, not both.

For full details on the exact income brackets and how to claim these exclusions, visit the Vermont Department of Taxes Military and Veterans Guide. You can also review Sen. Major's legislative portfolio on his Vermont Legislature Member Page.