Military Retirement Pay Income Tax Exemption
Military retirement pay is 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
- Estimated value
- Full retirement pay exemption
- Where it applies
- Massachusetts
- Last verified
- September 30, 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
- Veterans
- 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
- 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 Military Retirement Pay Income Tax Exemption
Who qualifies for Military Retirement Pay Income Tax Exemption?
Military Retirement Pay 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 much is Military Retirement Pay Income Tax Exemption worth?
The listed value is Full retirement pay exemption. Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Pay 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 Military Retirement Pay 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
- VA Disability Pension Income Tax ExemptionVA disability pensions are 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.