Bill > H0584

This bill amends Vermont law to exclude income from public safety pensions and survivor benefits from state income taxation, meaning individuals receiving these specific types of retirement income will no longer have to pay state income tax on them. The bill clarifies that this exclusion applies to pension or survivor benefit income received from any U.S. state or municipality by individuals who served as police officers, firefighters, or emergency medical technicians, and it is intended to reduce the tax burden on these public safety professionals. This change is effective retroactively to January 1, 2026, and will apply to all taxable years beginning on or after that date.

Budget and Finance

https://legislature.vermont.gov/bill/status/2026/H.584