Oregon veteran taxes

Military retired pay in Oregon

Partly exempttax year 2025Sources 1, 2, 3, 4

Oregon taxes military retired pay except the share attributable to federal service before October 1, 1991, which is subtracted (ORS 316.680(1)(e); 2025 Publication OR-17): 100% if all months of service or retirement points were before that date, nothing if none were, and otherwise the percentage of months or points before October 1, 1991, out of the total. A retirement income credit (ORS 316.157) is available at age 62 or older to filers whose household income is under $22,500 ($45,000 joint), whose Social Security and Tier 1 benefits are under $7,500 ($15,000 joint), and whose household income plus those benefits is under $22,500 ($45,000 joint); it covers federal pensions, including military, not subtracted.

Survivor Benefit Plan annuities

Partly exemptSources 5, 6

The Department of Revenue says the federal pension subtraction includes benefits paid to the retiree or the beneficiary, and ORS 316.680 defines a federal pension as any retirement allowance provided by the federal government to retirees or their beneficiaries, so the same before-October 1, 1991 share is subtractable. Neither source names the Survivor Benefit Plan.

Property tax relief for disabled veterans

Exemption or creditSources 7, 8

Oregon exempts part of the assessed value of the homestead (then of taxable personal property) of a resident veteran with official certification from the VA or a branch of the Armed Forces as having service-connected disabilities of 40% or more: $18,000 under ORS 307.250(3), raised 3% a year, which the Department of Revenue’s January 2026 publication gives as $32,512. A veteran certified with disabilities of 40% or more that are not service-connected, or certified by a licensed physician (with gross income of not more than 185% of federal poverty guidelines), receives the smaller exemption, $15,000 indexed, given as $27,092.

• The Department of Revenue’s publication describes a veteran as a U.S. citizen discharged or released from the Armed Forces under honorable conditions who meets one service condition, such as at least 179 consecutive days of service beginning after January 31, 1955, or at least one day in a combat zone (the statute points to ORS 408.225); the veteran must own and live in the homestead.
• The claim (form 150-303-086) goes to the county assessor by April 1; it need not be refiled each year unless the disability is physician-certified or ownership or use changes.

Vehicle registration for disabled veterans

Fee waiver or discountSources 9, 10

Oregon registers a vehicle of a disabled veteran whose disability is service-connected and who was discharged or released under honorable conditions after at least 90 consecutive days of service (or earlier because of a service-connected injury or illness) for a one-time registration fee, with no renewals or renewal fees (ORS 805.100). The DMV’s Application for Disabled Veteran Plates (Form 735-6736, 6-26) lists a disabled veteran registration fee of $15 plus the $26 plate fee and asks for a VA or armed forces letter or DD214 showing a service-connected or service-related disability; no rating threshold is stated.

• One disabled veteran plate or set of plates per veteran; a household may have as many such registrations as it has qualifying disabled veterans; commercial vehicles are excluded.
• The plates do not allow parking in disabled spaces without a separate Disabled Person Parking Permit.
• The statute does not provide for a surviving spouse.