Updated January 2026
Maryland Veteran Benefits 2026
Maryland offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in MD for 2026.
Maryland Highlights
- Partial military retirement exemption
- Full property tax exemption for 100% disabled
- Free toll transponders for disabled veterans
- Maryland Veterans Trust Fund
Income Tax Treatment
Maryland has a state income tax.
Military Retirement Pay: Maryland exempts up to $12,500 of military retirement pay. Increases to $20,000 for retirees 55+.
Active Duty Pay: Active duty pay earned outside Maryland is exempt.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Maryland does not tax VA disability payments.
Property Tax Exemption for Veterans
100% disabled veterans receive full property tax exemption on homestead.
Maximum Benefit: Full exemption for 100% disabled
To apply for property tax exemptions in Maryland, contact your county assessor's office or the Maryland Department of Veterans Affairs. You will typically need your VA disability rating letter and proof of residence.
VA Healthcare in Maryland
Maryland has approximately 2 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.