Military Retirement — Fully Exempt, No Offset
Military retirement benefits, survivor benefits included, are fully exempt from Maine income tax since 2016 — and unlike every other Maine pension, the social security offset does not touch them.
Verified August 20, 2026
What this benefit is
Military retirement benefits, survivor benefits included, are fully exempt from Maine income tax since 2016 — and unlike every other Maine pension, the social security offset does not touch them.
What it's worth: The whole of your military retirement plan benefits, exempt
- Other Maine pension income runs through a capped deduction reduced by social security; military retirement bypasses both the cap and the offset.
Who is entitled to it
- You receive military retired pay.
- Your home is in this state.
Not sure whether that describes you?
Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.
How to claim it
Deadline: With your return- 1Exempt the full military retirement amount on the Maine return — since tax year 2016.
- 2Do not run it through the general pension deduction: the capped, social-security-offset deduction is for OTHER pensions, and mixing the two understates the military exemption.
- File with
- The state revenue department, on your annual return
- Annual
- Claimed once a year.
Sources
- authority · published policyMaine Revenue Services — Individual Income Tax FAQ (military retirement plan benefits)
Why only one source type: Maine Revenue Services' own FAQ states the full exemption, the 2016 effective date, the survivor coverage and the offset carve-out in terms.
This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.