Military Retirement Pay Tax Subtraction
Full subtraction of military retirement pay attributable to pre-October 1, 1991 service from Oregon taxable income.
State BenefitOregonTax Benefits
Verified May 12, 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
- May 12, 2026
What is Military Retirement Pay Tax Subtraction?
Military Retirement Pay Tax Subtraction is a Oregon tax benefits benefit for veterans. Full subtraction of military retirement pay attributable to pre-October 1, 1991 service from Oregon taxable income.
Who qualifies
- Veterans
- Available to any veteran
- Oregon residency
Who is eligible
Eligibility
Retired military service members with service prior to October 1, 1991. For mixed service periods, a prorated percentage applies (months before Oct 1, 1991 divided by total months of service). Pay earned on or after October 1, 1991 is NOT eligible.
How to apply for Military Retirement Pay Tax Subtraction
How to apply
Claim on Oregon state income tax return.
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.
How VetUnlock verifies benefitsFrequently asked questions about Military Retirement Pay Tax Subtraction
Who qualifies for Military Retirement Pay Tax Subtraction?
Military Retirement Pay Tax Subtraction 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 Retirement Pay Tax Subtraction?
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 Tax Subtraction?
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 Oregon Tax Benefits
- Military Disability Retirement Pay ExemptionMilitary 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).
- Disabled Veteran Property Tax Exemption$27,092-$32,512 off assessed valueProperty tax exemption of $27,092-$32,512 of assessed value for veterans rated 40%+ (amounts increase 3% annually).