Social Security benefits in Vermont
Varies
Is Social Security Taxed in Vermont?
Short answer: Partly. Taxable Social Security is fully exempt if AGI is $55,000 or less (single, head of household, married filing separately, widow(er)) or $70,000 or less (married filing jointly). It phases out until it disappears at $65,000 and $80,000 respectively. These thresholds come from Act 71 of 2025 and are fixed in statute (32 V.S.A. 5830e), not indexed. No 2026 change was enacted (H.74 and H.878 did not pass). The DOR page's introductory text also conflicts with its own table; the table matches the statute.
Federally, up to 85% of benefits can be taxable depending on your combined income (IRS Pub 915); that part doesn't change by state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Social Security benefits in Vermont
Varies
Individuals / Personal Taxes
Partly. Taxable Social Security is fully exempt if AGI is $55,000 or less (single, head of household, married filing separately, widow(er)) or $70,000 or less (married filing jointly). It phases out until it disappears at $65,000 and $80,000 respectively. These thresholds come from Act 71 of 2025 and are fixed in statute (32 V.S.A. 5830e), not indexed. No 2026 change was enacted (H.74 and H.878 did not pass). The DOR page's introductory text also conflicts with its own table; the table matches the statute.
Business justification
Partly. Taxable Social Security is fully exempt if AGI is $55,000 or less (single, head of household, married filing separately, widow(er)) or $70,000 or less (married filing jointly). It phases out until it disappears at $65,000 and $80,000 respectively. These thresholds come from Act 71 of 2025 and are fixed in statute (32 V.S.A. 5830e), not indexed. No 2026 change was enacted (H.74 and H.878 did not pass). The DOR page's introductory text also conflicts with its own table; the table matches the statute. Federally, up to 85% of benefits can be taxable depending on your combined income (IRS Pub 915); that part doesn't change by state.
Category
- Personal Tax Deductions