Active-Duty Pay Income Tax Exemption
Military pay exempt from Maine state income tax for residents stationed outside Maine.
At a glance
- Benefit type
- Tax Benefits — Maine
- Who it's for
- Active Duty
- VA rating needed
- No rating requirement
- Where it applies
- Maine
- Last verified
- May 12, 2026
What is Active-Duty Pay Income Tax Exemption?
Active-Duty Pay Income Tax Exemption is a Maine tax benefits benefit for active duty. Military pay exempt from Maine state income tax for residents stationed outside Maine.
Who qualifies
- Through veteran sponsor (any rating)
- Maine residency
Who is eligible
Eligibility
Maine resident serving on active duty, stationed outside the state.
What Active-Duty Pay Income Tax Exemption covers
Covers
Full exemption from state income tax on military pay.
How to apply for Active-Duty Pay Income Tax Exemption
How to apply
Claimed on Maine state income tax return.
Verified information & sources
Last verified: May 12, 2026
Official source: maine.gov
Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.
Frequently asked questions about Active-Duty Pay Income Tax Exemption
Who qualifies for Active-Duty Pay Income Tax Exemption?▾
How do I apply for Active-Duty Pay Income Tax Exemption?▾
Where can I verify Active-Duty Pay Income Tax Exemption?▾
Other Maine Tax Benefits
Standard Veteran Property Tax Exemption
$6,000 reduction from assessed home value for wartime veterans age 62+, 100% disabled, or who became 100% disabled while serving.
~$120/year savings
Military Retirement Pay Income Tax Exemption
100% of military retired pay is exempt from Maine state income tax.
Full retirement pay exemption
Survivor Benefit Plan Tax Exemption
SBP, RCSBP, and RSFPP annuities are not taxed by Maine.
Paraplegic Veteran Property Tax Exemption
Up to $50,000 exemption from home value for paraplegic veterans.
Up to $50,000 property tax exemption
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