Military retirement pay in Maine
Varies
Does Maine Tax Military Retirement Pay?
Short answer: No. Maine fully exempts military retired pay from state income tax. Other retirement income: Each taxpayer may deduct up to $48,216 (2025) of pension, 401(k), and IRA income, reduced by Social Security and railroad retirement benefits received. The deduction phases out above AGI of $125,000 single / $250,000 joint.
Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Military retirement pay in Maine
Varies
Individuals / Personal Taxes
No. Maine fully exempts military retired pay from state income tax. Other retirement income: Each taxpayer may deduct up to $48,216 (2025) of pension, 401(k), and IRA income, reduced by Social Security and railroad retirement benefits received. The deduction phases out above AGI of $125,000 single / $250,000 joint.
Business justification
No. Maine fully exempts military retired pay from state income tax. Other retirement income: Each taxpayer may deduct up to $48,216 (2025) of pension, 401(k), and IRA income, reduced by Social Security and railroad retirement benefits received. The deduction phases out above AGI of $125,000 single / $250,000 joint. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions