Learn more about Retirement Pay and Pension Tax Deductions
Programs & services
Listed on the organization's official site (veterans.maryland.gov), checked Aug 28, 2026. Always confirm availability with the organization.
- Military Retirement Pay Income Tax DeductionVeterans or spouses of military retirees that receive military retirement income.
- Maryland Pension ExclusionPeople age 65 or older or totally disabled, or whose spouse is totally disabled, who included qualifying pension, annuity, or endowment income on their federal return.
Eligibility
Veterans or spouses of military retirees that receive military retirement income may subtract some of their retirement income from their federal adjusted gross income before determining Maryland tax. Taxpayers 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. Taxpayers 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.
How to apply
Summarized from the program's official site (veterans.maryland.gov), checked Aug 28, 2026. Always confirm details with the program.
- Complete Maryland Form 502.
- Follow the Maryland resident tax booklet instructions for line 13 to subtract eligible military retirement income or claim the pension exclusion.
- If you need help, visit a local office for taxpayer assistance listed on the Maryland Comptroller website or call Maryland Taxpayer Service.
What to bring
- Maryland Form 502
- Information needed for line 13 of the Maryland resident tax booklet
- Your federal return showing pension, annuity, endowment, or military retirement income
Contact
- Serves all of Maryland
Next step
See every Maryland program for this need, how they fit together, and what to try first.
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Source: Maryland Department of Veterans & Military Families, the official Maryland state veterans agency. Details can change; confirm directly with the program.
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