VA Disability Pension Income Tax Exemption
VA disability pensions are fully exempt from Massachusetts state income tax.
State BenefitMassachusettsTax Benefits
Verified September 30, 2026 against mass.gov
At a glance
- Benefit type
- Tax Benefits — Massachusetts
- Who it's for
- Veterans
- VA rating needed
- No rating requirement
- Where it applies
- Massachusetts
- Last verified
- September 30, 2026
What is VA Disability Pension Income Tax Exemption?
VA Disability Pension Income Tax Exemption is a Massachusetts tax benefits benefit for veterans. VA disability pensions are fully exempt from Massachusetts state income tax.
Who qualifies
- Veterans
- Available to any veteran
- Massachusetts residency
Who is eligible
Eligibility
Veterans receiving VA disability pensions. The official sources do not specify a disability-rating threshold or other eligibility criteria for this income-tax exemption.
What VA Disability Pension Income Tax Exemption covers
Coverage
Full exemption from Massachusetts state income tax on VA disability pensions. Amounts received as veterans' disability pensions, disability compensation, and G.I. benefits are exempt from federal and state taxation, and Massachusetts is thus not permitted to tax such amounts (38 U.S.C. 5301). Military disability pensions are likewise excluded from Massachusetts gross income under M.G.L. c. 62, 1(c) and IRC 104 (Massachusetts relies on the Internal Revenue Code for determining income). The official sources state no dollar cap, percentage limit, or time limit; the income is excluded from gross income.
Important to know
The official sources do not specify required documents, a filing form, deadlines, or renewal requirements for this exemption.
How to apply for VA Disability Pension Income Tax Exemption
How to apply
Exclude qualifying income when filing your Massachusetts state tax return. Because the income is excluded from gross income, it is not included in Massachusetts taxable income.
Verified information & sources
- Last verified
- September 30, 2026
- Official source
- mass.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 benefitsFrequently asked questions about VA Disability Pension Income Tax Exemption
Who qualifies for VA Disability Pension Income Tax Exemption?
VA Disability Pension Income Tax Exemption is for Veterans; available to any veteran; massachusetts residency. See the eligibility details on this page and confirm with the official source before applying.
How do I apply for VA Disability Pension Income Tax Exemption?
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 VA Disability Pension Income Tax Exemption?
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 Massachusetts Tax Benefits
- Military Retirement Pay Income Tax ExemptionFull retirement pay exemptionMilitary retirement pay is fully exempt from Massachusetts state income tax.
- Survivor Benefit Plan Income Tax ExemptionSBP payments are fully exempt from Massachusetts state income tax.
- Property Tax Exemption -- Clause 22 (10%+ Disability)$400 base ($800 if doubled under HERO Act 22J)Approximately $400 property tax exemption for veterans with 10%+ service-connected disability.
- Property Tax Exemption -- Clause 22A (Loss of One Limb/Eye)$750 base ($1,500 if doubled under HERO Act 22J)For veterans who lost or lost use of one hand, foot, or eye in service. Approximately $750 property tax exemption.