Loading...
2026 rules · verified against Maryland's primary source
Maryland partially exempts military retirement pay (up to about $40,000); the rest is taxable.
Subtract up to $40,000 of military retirement pay, any age, for tax years 2026 and later (HB60, 'Keep Our Heroes Home Act', effective July 2025; the subtraction was $25,000 for TY2025). Prior rule was $12,500 under 55 / $20,000 at 55+. Verified 2026-08-09.
Treatment
partially exempt
Exemption up to
$40,000
Top marginal rate
6.50%
Source: https://veterans.maryland.gov/benefits-services/tax-exemptions/retirement-pay-and-pension-tax-deductions-and-exclusion · verified July 2026
Estimated Maryland state income tax on your military retirement, using the top marginal rate on the taxable portion (an upper bound; your effective rate is usually lower).
More Maryland: all Maryland veteran benefits · military retirement tax in every state · what your pension is worth