Does Vermont tax Social Security benefits?

Yes — with exemptions for many retirees.

Vermont taxes Social Security benefits but fully exempts them for single filers under $50,000 and joint filers under $65,000 of AGI, with a partial exemption phasing out up to $60,000 / $75,000. Many retirees owe nothing.

Note: this covers state tax only. The federal government may tax up to 85% of your benefits depending on your combined income, regardless of where you live.

See how your claiming age affects your benefit.

Reviewed 2026-06-17. Verify with the Vermont Department of Revenue.

Updated July 2026