Military Retirement Pay Income Tax Exemption
100% of military retired pay is exempt from Maine state income tax.
At a glance
- Benefit type
- Tax Benefits — Maine
- Who it's for
- Veterans
- VA rating needed
- No rating requirement
- Estimated value
- Full retirement pay exemption
- Where it applies
- Maine
- Last verified
- May 12, 2026
What is Military Retirement Pay Income Tax Exemption?
Military Retirement Pay Income Tax Exemption is a Maine tax benefits benefit for veterans. 100% of military retired pay is exempt from Maine state income tax. The listed value is Full retirement pay exemption.
Who qualifies
- Available to any veteran
- Maine residency
Who is eligible
Eligibility
Any military retiree receiving retirement pay. No disability or residency duration requirement beyond being a Maine tax filer.
What Military Retirement Pay Income Tax Exemption covers
Covers
Full exemption of military retirement pay from Maine state income tax. A retiree receiving $30,000/year at Maine's top marginal rate (7.15%) saves up to ~$2,145/year.
How to apply for Military Retirement 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 Military Retirement Pay Income Tax Exemption
Who qualifies for Military Retirement Pay Income Tax Exemption?▾
How much is Military Retirement Pay Income Tax Exemption worth?▾
How do I apply for Military Retirement Pay Income Tax Exemption?▾
Where can I verify Military Retirement 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
Active-Duty Pay Income Tax Exemption
Military pay exempt from Maine state income tax for residents stationed outside Maine.
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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