Does Maine tax military retirement pay?
Not taxed
No. Maine fully exempts benefits from a U.S. military retirement plan, survivor benefits included.
In the state's own words
Copied word for word from the official document linked below each quote:
“The benefits received under a United States military retirement plan, including survivor benefits, are fully exempt from Maine income tax.”
Other retirement income in Maine
Partly. For 2025 Maine lets each person deduct up to $48,216 of eligible pension income, but that cap is reduced by any Social Security and railroad retirement benefits received. Military retirement pay has its own deduction. The Maine pension page has the details, and the Maine Social Security page covers Social Security. No. On Maine Schedule 1S, the Social Security that is taxed on your federal return is a subtraction from income.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the Maine Revenue Services before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- 2025 Form 1040ME InstructionsMaine Revenue Services. Read on November 13, 2026.