VetUnlock
State Benefit·Maryland·🏛️Tax Benefits

Military Retirement Income Tax Subtraction

Subtract up to $12,500-$20,000 of military retirement income from Maryland state taxable income.

Verified May 12, 2026againstveterans.maryland.gov

At a glance

Benefit type
Tax Benefits — Maryland
Who it's for
Veterans, Active Duty, National Guard, Reservists
VA rating needed
No rating requirement
Estimated value
Up to $20,000 subtraction (age 55+)
Where it applies
Maryland
Last verified
May 12, 2026

What is Military Retirement Income Tax Subtraction?

Military Retirement Income Tax Subtraction is a Maryland tax benefits benefit for veterans, active duty, national guard, reservists. Subtract up to $12,500-$20,000 of military retirement income from Maryland state taxable income. The listed value is Up to $20,000 subtraction (age 55+).

Who qualifies

VeteransActive DutyNational GuardReservists
  • Available to any veteran
  • Maryland residency

How to apply

Apply through the official Maryland agency.

Open application

Who is eligible

Eligibility

Must be receiving military retirement income (active duty, reserve, National Guard, commissioned corps) and file as a Maryland resident taxpayer.

What Military Retirement Income Tax Subtraction covers

Amount

Up to $12,500 subtraction for retirees under age 55; up to $20,000 subtraction for retirees age 55 and older. Verify current amounts with the Maryland Comptroller, since these figures are periodically revised by the legislature.

How to apply for Military Retirement Income Tax Subtraction

How to claim

Claimed on your Maryland state income tax return.

Open applicationVerify at official source

Verified information & sources

Last verified: May 12, 2026

Official source: veterans.maryland.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.

How VetUnlock verifies benefits →

Frequently asked questions about Military Retirement Income Tax Subtraction

Who qualifies for Military Retirement Income Tax Subtraction?▾
Military Retirement Income Tax Subtraction is for Veterans, Active Duty, National Guard, Reservists; available to any veteran; maryland residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Income Tax Subtraction worth?▾
The listed value is Up to $20,000 subtraction (age 55+). Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Income Tax Subtraction?▾
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Military Retirement Income Tax Subtraction?▾
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.

Other Maryland Tax Benefits

Full Property Tax Exemption (100% Disabled)

Complete exemption from all property taxes on primary dwelling for 100% permanently and totally disabled veterans.

100% property tax exemption

See every benefit you qualify for in Maryland

Get a personalized list of federal, state, and local veteran benefits based on your service history, disability rating, and Maryland residency — in under 2 minutes.

Find My Maryland Benefits