Massachusetts veteran taxes

Military retired pay in Massachusetts

ExemptSource 1

Massachusetts deducts from gross income any income received from the United States government as retirement pay for a retired member of the Uniformed Services (as defined in 10 U.S.C. § 1072), whether or not the retiree contributed to the retirement system (M.G.L. c. 62, § 2(a)(2)(E)). The law sets no age, cap or income test.

Survivor Benefit Plan annuities

ExemptSource 2

The same provision deducts any income received from the United States government as survivorship benefits under 10 U.S.C. §§ 1431 to 1460, the range that includes the Survivor Benefit Plan (M.G.L. c. 62, § 2(a)(2)(E)).

Property tax relief for disabled veterans

Exemption or creditSources 3, 4, 5

Massachusetts grants disabled veterans fixed property tax exemptions on the real estate they occupy as their domicile (M.G.L. c. 59, § 5, clauses Twenty-second to Twenty-second F). The veteran must be a legal resident, discharged under other than dishonorable conditions, and must have been domiciled in Massachusetts for at least 6 months before entering service or have lived in the state for 2 consecutive years before filing. The exemption is allowed by the city or town assessors.

• Clause Twenty-second: veterans with a service-connected disability rating of 10% or more (and Purple Heart recipients) are exempt on $2,000 of assessed valuation or $400 of tax, whichever gives the larger abatement.
• Clauses Twenty-second A, B, C and E (each exempts a stated amount of taxable valuation or a fixed amount of tax, whichever gives the larger abatement): $4,000 or $750 for loss or permanent loss of use of one foot, one hand or sight of one eye (and certain medals or former prisoner-of-war status); $8,000 or $1,250 for loss or loss of use of both feet, both hands, one of each, or sight of both eyes; $10,000 or $1,500 for permanent and total disability with VA specially adapted housing; $6,000 or $1,000 for a 100% disability rating. Clause Twenty-second F fully exempts paraplegic veterans and veterans rated 100% for service-connected blindness.
• Cities and towns that accept clauses Twenty-second I and J may raise these amounts by the cost of living and add up to 100% more.
• A city or town may, by local option, grant the exemptions to otherwise eligible veterans who have lived in Massachusetts for 1 year.

Vehicle registration for disabled veterans

Fee waiver or discountSources 6, 7, 8

Massachusetts charges no registration fee for any vehicle owned by a veteran whom the U.S. Department of Veterans Affairs has rated at a combined 100% service-connected disability or found individually unemployable due to a service-connected disability, and no fee for that veteran’s driver’s license (M.G.L. c. 90, § 33(29)). The motor vehicle excise tax does not apply to one vehicle owned and registered by, or leased to, a veteran with that rating or unemployability finding, or with service-connected loss or loss of use of one or both feet or hands, or a qualifying loss of sight (M.G.L. c. 60A, § 1).

• Plates: the registrar may issue plates with the International Symbol of Access and the words Disabled Veteran for a passenger vehicle or pickup truck owned or leased by a veteran with service-connected loss or loss of use of feet or hands or impairment of vision of both eyes (M.G.L. c. 90, § 2).