Does Maryland tax military retirement pay?
Partly taxed
Partly. Maryland lets you subtract up to $20,000 of military retirement income at 55 or older, and up to $12,500 under 55.
In the state's own words
Copied word for word from the official document linked below each quote:
“Individuals at least 55 years of age on the last day of the taxable year may subtract up to $20,000 of military retirement income received in the taxable year from their federal adjusted gross income.”
“Individuals under the age of 55 on the last day of the taxable year may subtract up to $12,500 of military retirement income received in the taxable year from their federal adjusted gross income.”
Other retirement income in Maryland
Partly. If you are 65 or older or totally disabled, Maryland lets you subtract taxable pension income up to $41,200. IRAs do not qualify for it. The Maryland pension page has the details, and the Maryland Social Security page covers Social Security. No. Maryland exempts the Social Security that is taxed on your federal return.
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 Comptroller of Maryland 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.
- Seniors and Retirees Frequently Asked QuestionsComptroller of Maryland. Read on November 13, 2026.