Military Disability Retirement Pay Exemption

Military disability retirement pay for personal injury or sickness from active service can be excluded from Oregon taxable income in certain cases (pre-Sept. 25, 1975 service, combat-related injuries, or up to the VA compensation amount).

State BenefitOregonTax Benefits

Verified September 30, 2026 against oregon.gov

At a glance

Benefit type: Tax Benefits — Oregon
Who it's for: Veterans
VA rating needed: No rating requirement
Where it applies: Oregon
Last verified: September 30, 2026

What is Military Disability Retirement Pay Exemption?

Military Disability Retirement Pay Exemption is a Oregon tax benefits benefit for veterans. Military disability retirement pay for personal injury or sickness from active service can be excluded from Oregon taxable income in certain cases (pre-Sept. 25, 1975 service, combat-related injuries, or up to the VA compensation amount).

Who qualifies

Veterans

Available to any veteran
Oregon residency

How to apply

Apply through the official Oregon agency.

Open application

Who is eligible

Eligibility

Veterans receiving disability retirement pay as pension/annuity for personal injury or sickness from active service in the Armed Forces.

What Military Disability Retirement Pay Exemption covers

Benefit

Excluded from federal and therefore Oregon taxable income only if you were in the service (or entitled to such pay) on or before September 24, 1975, the pay is for a combat-related injury, or up to the amount you would receive as VA disability compensation.

Verified information & sources

Last verified: September 30, 2026
Official source: oregon.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 Disability Retirement Pay Exemption

Who qualifies for Military Disability Retirement Pay Exemption?

Military Disability Retirement Pay Exemption is for Veterans; available to any veteran; oregon residency. See the eligibility details on this page and confirm with the official source before applying.

How do I apply for Military Disability Retirement Pay 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 Disability Retirement Pay 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.