Some of the key changes for the 2025 tax year for the state of Vermont include adjustments to the Child Tax Credit, Earned Income Tax Credit, Retirement income and Social Security exclusions, and a new Veteran Tax Credit.
- The Vermont Child Tax Credit (CTC) is now $1,000 for children aged six or younger and does not require an SSN or TIN.
- The Earned Income Tax Credit (EITC) eligibility is broadened, and credit amounts are based on federal percentages.
- Exclusions for Social Security income have increased thresholds for single and joint filers. There are also exclusions for military and other non-military retirement income with varying thresholds based on AGI. Taxpayers must select one exclusion if eligible for multiple.
- A new $250 refundable Vermont Veteran Tax Credit is available for eligible veterans with AGI up to $25,000.