Military Retirement Pay Income Tax Exemption
Military retirement pay is fully exempt from Massachusetts state income tax.
At a glance
- Benefit type
- Tax Benefits — Massachusetts
- Who it's for
- Veterans
- VA rating needed
- No rating requirement
- Estimated value
- Full retirement pay exemption
- Where it applies
- Massachusetts
- Last verified
- May 12, 2026
What is Military Retirement Pay Income Tax Exemption?
Military Retirement Pay Income Tax Exemption is a Massachusetts tax benefits benefit for veterans. Military retirement pay is fully exempt from Massachusetts state income tax. The listed value is Full retirement pay exemption.
Who qualifies
- Available to any veteran
- Massachusetts residency
Who is eligible
Eligibility
Retired members of the U.S. Uniformed Services receiving military retirement pay, including service in the Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard, and the Commissioned Corps of the Public Health Service and the National Oceanic and Atmospheric Administration (NOAA).
What Military Retirement Pay Income Tax Exemption covers
Coverage
Full exemption from Massachusetts state income tax on military retirement pay; income from such U.S. military pensions is excluded from Massachusetts gross income. Survivorship benefits for a retired member of the Uniformed Services are also exempt. The exemption has been in effect since January 1, 1997 (M.G.L. c. 62, sec. 2(a)(2)(E); St. 1997, c. 139, s. 1).
Important to know
This income remains subject to federal income tax.
How to apply for Military Retirement Pay Income Tax Exemption
How to apply
This is a filing-time exclusion, not a separate application. Exclude the qualifying retirement pay from Massachusetts gross income when filing your state income tax return.
Verified information & sources
Last verified: May 12, 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.
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 Massachusetts Tax Benefits
VA Disability Pension Income Tax Exemption
VA disability pensions are fully exempt from Massachusetts state income tax.
Survivor Benefit Plan Income Tax Exemption
SBP payments are fully exempt from Massachusetts state income tax.
Property Tax Exemption -- Clause 22 (10%+ Disability)
Approximately $400 property tax exemption for veterans with 10%+ service-connected disability.
$400 base ($800 if doubled under HERO Act 22J)
Property Tax Exemption -- Clause 22A (Loss of One Limb/Eye)
For veterans who lost or lost use of one hand, foot, or eye in service. Approximately $750 property tax exemption.
$750 base ($1,500 if doubled under HERO Act 22J)
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