Maine Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax

The state benefits Maine gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.

For the property tax year that began April 1, 2026, Maine exempts $6,000 of a qualifying veteran's home value ($7,000 for World War I-era, $50,000 for specially adapted housing) under 36 M.R.S. §653. From the property tax year beginning April 1, 2027, §653 is discontinued and replaced by an additional veteran exemption on top of the $25,000 homestead exemption: $5,000-$7,000 for veterans rated under 60%, scaling from $10,000 (60% rating) to $50,000 (100% rating or specially adapted housing). A 100% permanently and totally disabled veteran also gets a doubled Property Tax Fairness Credit, military retirement pay is fully deductible from Maine income tax, and other benefits include free hunting/fishing licenses (50%+ disability), no-fee disabled veteran plates (100% disability), dependent tuition waivers and the Maine Veterans' Homes. (sources)

Official sources  Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.

Property tax exemptions for veterans in Maine

Maine property tax benefits for veterans and surviving spouses (checked November 4, 2026)
BenefitWho qualifiesAmountHow to applySource
Veteran property tax exemptionMaine resident veteran (discharged other than dishonorably) who served during a federally recognized war period or was awarded an expeditionary medal, AND is age 62+ or receives federal pension/compensation for total disability (service- or nonservice-connected); also any veteran disabled in the line of duty who receives federal pension/compensation for total service-connected disability. No income limit.$6,000 of just value exempt ($7,000 for veterans of World War I or earlier wars). Applies to property in the town of residence, including joint tenancy with spouse or a revocable living trust. Applies through the property tax year beginning April 1, 2026; 36 M.R.S. §653(3) discontinues this exemption for property tax years beginning on or after April 1, 2027 (replaced by the veteran add-on to the homestead exemption in §683-A(2)).File a written application and proof of entitlement with the municipal assessor on or before April 1 of the first year the exemption is requested; it then continues while the veteran stays a resident of that town.36 M.R.S. §653(1)(C), (C-1), (G): Estates of veterans
Surviving spouse, minor child or parent exemptionUnremarried surviving spouse or minor child of a veteran who would qualify if living, or who receives federal pension/compensation as a veteran's surviving spouse or child; also the unremarried parent, age 62+, of a veteran whose death was service-connected and who receives federal pension/compensation for it. Must be a Maine resident.$6,000 of just value exempt ($7,000 where the veteran served in World War I or an earlier war period). Applies through the property tax year beginning April 1, 2026; 36 M.R.S. §653(3) discontinues this exemption for property tax years beginning on or after April 1, 2027 (replaced by the veteran add-on to the homestead exemption in §683-A(2)).Written application and proof filed with the municipal assessor by April 1 of the first year claimed.36 M.R.S. §653(1)(D), (D-2), (D-3): Estates of veterans
Specially adapted housing exemptionWartime-period (or expeditionary medal) veteran who received a federal grant for specially adapted housing under 38 U.S.C. §2101, or the veteran's unremarried surviving spouse. Maine resident.$50,000 of just value exempt. Applies through the property tax year beginning April 1, 2026; 36 M.R.S. §653(3) discontinues this exemption for property tax years beginning on or after April 1, 2027 (replaced by the veteran add-on to the homestead exemption in §683-A(2)).Written application and proof filed with the municipal assessor by April 1 of the first year claimed.36 M.R.S. §653(1)(D-1): Estates of veterans
Veteran additional homestead exemption (from property tax year beginning April 1, 2027)Veteran who is a permanent Maine resident and whose homestead qualifies for the $25,000 homestead exemption (owned for the preceding 12 months). The unremarried surviving spouse, minor child or parent of a deceased veteran gets the exemption the veteran would get if living. No income limit. Only one tier applies.Added to the $25,000 homestead exemption (just value): no rating or rated under 60% - $5,000 if under age 62, $6,000 if age 62+, $7,000 if served during or before World War I; rated 60% - up to $10,000; 70% - up to $20,000; 80% - up to $30,000; 90% - up to $40,000; 100% - up to $50,000; specially adapted housing grant (38 U.S.C. §2101) - $50,000.File the homestead application plus written proof of veteran entitlement with the municipal assessor on or before April 1 of the first year requested (36 M.R.S. §684(5)); first applicable deadline April 1, 2027.36 M.R.S. §683-A(2): Homestead exemption; veterans (PL 2025, c. 650, Pt. M)
Additional Property Tax Fairness Credit for 100% P&T disabled veteransMaine resident veteran rated by the VA at 100% for one or more permanent service-connected disabilities (on a joint return, only one spouse needs to qualify). Tax years beginning on or after January 1, 2023.An additional refundable credit equal to the regular Property Tax Fairness Credit, which doubles it. The combined credit cannot exceed the property tax (or rent counted as property tax) actually paid on the Maine homestead.Claim on the Maine individual income tax return (Schedule PTFC).36 M.R.S. §5219-KK(2-E): Property tax fairness credit

Is military retired pay taxed in Maine?

Maine state income tax on military retired pay (checked November 4, 2026)
TreatmentAmount or limitSource
Fully exempt. Under 36 M.R.S. §5122(2)(M-2), for tax years beginning on or after January 1, 2016, military retirement plan benefits included in federal AGI are subtracted in full, separately from the capped general pension deduction and not reduced by Social Security. For tax years beginning on or after January 1, 2026, 'military retirement plan' covers service in all uniformed services as defined in 37 U.S.C. §101(3) (adds e.g. NOAA Corps and Public Health Service).100% of military retirement pay included in federal AGI (no dollar cap)legislature.maine.gov

For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.

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Other Maine veteran benefits

Vehicles and license plates

Maine: vehicles and license plates for veterans
BenefitWho qualifiesAmountSource
Disabled veteran registration plates100% disabled veteran certified by the U.S. Department of Veterans Affairs or a branch of the Armed Forces as permanently disabled and receiving 100% service-connected benefits; vehicle registered gross weight of 26,000 lb or less; up to 3 vehiclesNo annual registration fee. Excise tax still applies unless separately exempt. A disability placard is available at no fee.legislature.maine.gov

Hunting, fishing and other licenses

Maine: hunting, fishing and other licenses for veterans
BenefitWho qualifiesAmountSource
Free hunting, trapping and fishing licenses (plus guide license if qualified)Resident disabled veteran, or a nonresident disabled veteran, who was honorably discharged from the U.S. Armed Forces or National Guard and has a service-connected disability rated at 50% or moreNo cost for all hunting, trapping and fishing licenses, including permits and stamps; the license remains valid for lifelegislature.maine.gov

Education

Maine: education for veterans
BenefitWho qualifiesAmountSource
Veterans Dependents Educational Benefits (tuition waiver)Spouse, unremarried widow(er), or child (age 16+, high school graduate, awarded benefits before the 22nd birthday; up to age 26 if delayed by U.S. Armed Forces service) of a veteran who entered service from Maine or lived in Maine 5 years before applying, and who has a total permanent service-connected disability, was killed in action, died of a service-connected disability, was totally and permanently disabled at death, or is listed as missing, captured or detained for more than 90 daysTuition, mandatory fees and lab fees waived at Maine state-supported postsecondary schools for up to 120 credit hours. Spouses: certificate through master's, within 10 years. Children: certificate, associate's and bachelor's, within 10 academic years, capped at the in-state cost of 120 undergraduate credits at UMaine Orono, 2.0 GPA required. Room and board are not covered.legislature.maine.gov

State veterans homes

Maine: state veterans homes for veterans
BenefitWho qualifiesAmountSource
Maine Veterans' Homes (long-term care)Honorably discharged veterans who served on active duty, reserve members who served on active duty other than for training, other veterans meeting state and federal requirements, and eligible family membersLong-term care and related services at homes in Augusta, Bangor, Caribou, Machias, Scarborough and South Parislegislature.maine.gov

Common questions

Does Maine have a property tax exemption for disabled veterans?

Maine lists 5 veteran property tax benefits. The main one: Additional Property Tax Fairness Credit for 100% P&T disabled veterans. Who qualifies: Maine resident veteran rated by the VA at 100% for one or more permanent service-connected disabilities (on a joint return, only one spouse needs to qualify). Tax years beginning on or after January 1, 2023.. Amount: An additional refundable credit equal to the regular Property Tax Fairness Credit, which doubles it. The combined credit cannot exceed the property tax (or rent counted as property tax) actually paid on the Maine homestead. (36 M.R.S. §5219-KK(2-E): Property tax fairness credit).

How do I apply for the Maine veteran property tax exemption?

Claim on the Maine individual income tax return (Schedule PTFC). (36 M.R.S. §5219-KK(2-E): Property tax fairness credit).

Does Maine tax military retirement pay?

Fully exempt. Under 36 M.R.S. §5122(2)(M-2), for tax years beginning on or after January 1, 2016, military retirement plan benefits included in federal AGI are subtracted in full, separately from the capped general pension deduction and not reduced by Social Security. For tax years beginning on or after January 1, 2026, 'military retirement plan' covers service in all uniformed services as defined in 37 U.S.C. §101(3) (adds e.g. NOAA Corps and Public Health Service). Amount or limit: 100% of military retirement pay included in federal AGI (no dollar cap) (legislature.maine.gov).

What other benefits do veterans get in Maine?

Free hunting, trapping and fishing licenses (plus guide license if qualified) (legislature.maine.gov); Disabled veteran registration plates (legislature.maine.gov); Veterans Dependents Educational Benefits (tuition waiver) (legislature.maine.gov); Maine Veterans' Homes (long-term care) (legislature.maine.gov). Who qualifies and the amounts are in the tables above.

Sources

Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.

Related

Maine senior property tax relief → Maine state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →