Active-Duty Pay Income Tax Exemption

Maine resident service member who earned military compensation for service performed outside Maine pursuant to written military orders, where (1) the service is active-duty service in the active components of the U.S. Army, Navy, Air Force, Marines, Coast Guard or Space Force and the permanent duty station during that service is located outside Maine; or (2) the service is active or reserve component (or Maine National Guard) service in support of a federal operational mission or a declared state or federal disaster response, when the orders are at federal direction or at the direction of the Governor of Maine. Per Maine Revenue Services, a "federal operational mission" is limited to activity in support of overseas deployment and excludes standard duty activity such as training and administrative activities.

Subtraction (deduction) of qualifying military compensation from income, to the extent included in federal adjusted gross income and to the extent otherwise subject to Maine income tax. The deduction is limited to that portion of the tax year during which you were a Maine resident. No dollar or percentage cap applies.

Claimed on Form 1040ME, Schedule 1S (Subtractions from federal adjusted gross income), on the line for "Non-Maine active duty military pay."