Military Retirement Pay Income Tax Exemption
100% of military retired pay is exempt from Maine state income tax.
Apply now
Apply directly through the official Maine agency.
About this benefit
Eligibility
Any military retiree receiving retirement pay. No disability or residency duration requirement beyond being a Maine tax filer.
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
Claimed on Maine state income tax return.
Verified against official source
Last checked 2026-05-06 against www.maine.gov. Always confirm current rates and rules with the Maine state agency before applying.
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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