Military Retirement Pay Tax Subtraction
Full subtraction of military retirement pay attributable to pre-October 1, 1991 service from Oregon taxable income.
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Apply directly through the official Oregon agency.
About this benefit
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
Claim on Oregon state income tax return.
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 Disability Retirement Pay Exemption
Military disability retirement pay for personal injury or sickness from active service is excluded 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
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