According to the Vermont website, "Vermont’s Governor signed Act 138 late in the Spring of 2022 that exempts a portion of military retirement pay. It exempts the first $10,000, but is subjected to an Annual Gross Income cap of $50,000 (single) and $65,000 (joint). It is also subject to choosing a Social Security tax exemption or Military Retirement pay tax exemption when someone reaches Social Security eligibility age."