Military Disability Retirement Pay Exemption
Military disability retirement pay for personal injury or sickness from active service is excluded from Oregon taxable income.
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
- May 12, 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 is excluded from Oregon taxable income.
Who qualifies
- Available to any veteran
- Oregon residency
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
Fully excluded from Oregon taxable income.
Verified information & sources
Last verified: May 12, 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.
Frequently asked questions about Military Disability Retirement Pay Exemption
Who qualifies for Military Disability Retirement Pay Exemption?▾
How do I apply for Military Disability Retirement Pay Exemption?▾
Where can I verify Military Disability Retirement Pay Exemption?▾
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 $27,092-$32,512 of assessed value for veterans rated 40%+ (amounts increase 3% annually).
$27,092-$32,512 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