Maine veteran taxes

Military retired pay in Maine

Exempttax year 2025Source 1

Maine fully exempts benefits received under a United States military retirement plan from income tax. Maine Revenue Services’ tax year 2025 Form 1040ME instructions apply the military retirement deduction (Schedule 1S, line 4; 36 M.R.S. § 5122(2)(M-2)) to retirement pay for service in the Army, Navy, Air Force, Marines, Coast Guard or Space Force, with no age, cap or income test.

Survivor Benefit Plan annuities

ExemptSources 1, 2

The tax year 2025 Form 1040ME instructions say military retirement benefits, including survivor benefits, are fully exempt. Military annuity payments made to a survivor under a survivor benefit plan or reserve component survivor benefit plan (10 U.S.C. chapter 73) are exempt and are subtracted on Schedule 1S, line 6, excluding any amount already used in the pension income deduction (36 M.R.S. § 5122(2)(HH)).

Property tax relief for disabled veterans

Exemption or creditSources 3, 4, 5, 6, 7, 8, 9

For property tax years before April 1, 2027, Maine exempts $6,000 of the just value of the taxable estate, in the municipality of residence, of a resident veteran who receives a pension or compensation from the U.S. Government for total, service-connected disability, or of a veteran who served in a federally recognized war period, from February 1, 1955 to February 27, 1961, or who received an expeditionary medal, and is 62 or older or receives a pension or compensation for total disability (36 M.R.S. § 653(1)(C)); Maine Revenue Services describes it as an exemption on the home. Such a veteran who received a federal specially adapted housing grant gets $50,000 instead (§ 653(1)(D-1)), and a veteran of World War I or earlier gets $7,000 (§ 653(1)(C-1)). The exemption is adjusted by the municipality’s certified assessment ratio, and the application goes to the local assessor by April 1 of the first year.

• Enacted change: from the property tax year beginning April 1, 2027, § 653 is discontinued and 36 M.R.S. § 683-A (P.L. 2025, c. 650, Pt. M) adds to the $25,000 homestead exemption an extra amount of just value of up to $10,000 for veterans rated 60%, $20,000 at 70%, $30,000 at 80%, $40,000 at 90% and $50,000 at 100%; $50,000 for a specially adapted housing grant; and $5,000 (under age 62), $6,000 (age 62 or older) or $7,000 (World War I or earlier) for veterans with no rating or a rating below 60%. The war-period requirement is removed.
• Maine Revenue Services says homeowners who received one of these exemptions for the tax year beginning April 1, 2026 generally will not need to reapply.

Vehicle registration for disabled veterans

Fee waiver or discountSources 10, 11, 12

Maine registers vehicles of up to 26,000 pounds registered gross weight with no annual registration fee, and on request issues “Disabled Veteran” plates, for a 100% disabled veteran certified by the U.S. Department of Veterans Affairs or a branch of the Armed Forces as permanently disabled and receiving 100% service-connected benefits, for no more than 3 vehicles (29-A M.R.S. § 523(2)). Amputee or blind veterans who received an automobile from the U.S. Government or who have a specially designed vehicle register it without any fee (§ 523(1)).

• Excise tax: up to 3 automobiles owned, by a veteran with free registration under § 523(1) or (2) or who receives a pension or compensation for total, service-connected disability, and from July 1, 2026 up to 3 automobiles leased by a veteran receiving a pension or compensation for total, service-connected disability, are exempt from the vehicle excise tax; the veteran must be named on the title or lease (36 M.R.S. § 1483(12) and (12-A)).
• A disability placard may be issued at no fee on request.