Military Disability Retirement Pay Exemption
Military disability retirement pay for personal injury or sickness from active service is excluded from Oregon taxable income.
Apply now
Apply directly through the official Oregon agency.
About this benefit
Eligibility
Veterans receiving disability retirement pay as pension/annuity for personal injury or sickness from active service in the Armed Forces.
Benefit
Fully excluded from Oregon taxable income.
Verified against official source
Last checked 2026-05-05 against www.oregon.gov. Always confirm current rates and rules with the Oregon state agency before applying.
Other Oregon Tax Benefits
Military Retirement Pay Tax Subtraction
Full subtraction of military retirement pay attributable to pre-October 1, 1991 service from Oregon taxable income.
Disabled Veteran Property Tax Exemption
Property tax exemption of $26,303-$31,565 of assessed value for veterans rated 40%+ (amounts increase 3% annually).
$26,303-$31,565 off assessed value
See every benefit you qualify for in Oregon
Get a personalized list of federal, state, and local veteran benefits based on your service history, disability rating, and Oregon residency — in under 2 minutes.
Find My Oregon Benefits