Veteran Benefits for Maryland

Maryland Veteran Financial Benefits

• Income Tax: Military pay earned while serving overseas is tax-free up to $15,000. Retirement military pay is tax-free up to $5,000. When the Veteran is 55 or older, this increases to $15,000.

• Property Tax Exemption: Veterans who are permanently and totally disabled from service-connected causes are exempt from property tax on their primary residence. Upon the Veteran’s death, the exemption passes to their spouse. The surviving spouse of active-duty military personnel who died in the line of duty, as well as the surviving spouse of a totally disabled veteran, or a spouse who receives DIC may also receive an exemption

• Maryland State Taxes on U.S. Department of Veterans Affairs Military Disability Retired Pay: Military Disability Retirement Pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service in the armed forces should not be included in taxable income if any of the following conditions apply:

  • You were entitled to receive a disability payment before September 25th, 1975

  • You were a member of the military (active or reserves) or were under a binding written commitment to become a member on September 24th, 1975

  • You receive disability payments for a combat-related injury

  • You would be entitled to receive disability compensation from the Department of Veterans Affairs (VA) if you filed an application for it (the exclusion under this condition equals the amount you would be entitled to from the VA)

• Maryland State Taxes on U.S. Department of Veterans Affairs Disability Dependency and Indemnity Compensation: Dependency and Indemnity Compensation (DIC) is a tax-free monetary benefit paid to eligible survivors of military service members who died in the line of duty or eligible survivors of Veterans whose death resulted from a service-related injury or disease.

• Vessel Excise Tax: Active duty military personnel are exempt from the 5% vessel excise tax. This is only for vessels purchased out-of-state and brought into Maryland due to a PCS.

• Military Survivor Benefit Plan (SBP)/ Reserve Component Survivor Benefit Plan (RCSBP)/ Retired Serviceman’s Family Protection Plan (RSFPP) Maryland State Tax Benefits: Surviving Spouses receiving military retirement income are able to subtract up to $5,000 of the income from federal adjusted gross income before determining Maryland tax. Beginning with the tax year of 2018, if you are age 65 or older, you will be able to subtract up to $15,000 of the military retirement income.

• Maryland Military Spouse Residency Relief Act: The wages earned by a spouse of a non-resident U.S. Service member may be exempt from Maryland income tax under the Military Spouses Residency Relief Act when the Spouse of the Service member is not a legal resident of Maryland. The income tax withholding exemption may be claimed by filing a revised Exemption from Maryland Withholding Tax for a Qualified Civilian Spouse of an Armed Forces Service Member. As the military Spouse, you remain a non-resident for purposes of Maryland taxation and are not required to file a Maryland return, unless you received non-military income from Maryland sources.

Sales Tax:

• Statewide: 6.0%

• Counties: cannot levy an additional sales tax

• Common exceptions at the state level:

  • Prescription medicines are exempt

  • Unprepared foods are exempt

RECREATION

Free Hunting & Fishing Licenses for Disabled Veterans: A free lifetime hunting license is available to Maryland residents certified as former POWs, or 100% service-connected disabled Veterans. The lifetime license includes the bow stamp, muzzleloader stamp, and furbearer permit. The Maryland Migratory Game Bird Stamp is not part of the Complimentary License. The license incorporates both the non-tidal angler’s license and the Chesapeake Bay sport fishing license. It does not, however, include the trout stamp.

Active Duty Hunting & Fishing Licenses: Maryland residents on active duty and home on leave do not need to purchase a hunting or fishing license. Non-residents stationed in MD can buy hunting and fishing licenses at the resident rate.

Hunting in Maryland without a License for Resident Service Members: You are not required to possess a Maryland hunting license if you are:

• A Maryland resident serving in the United States Armed Forces that is on official leave in Maryland (whether stationed in Maryland or outside Maryland) and possesses a copy of official leave orders while hunting

• A person serving in the United States Armed Forces who has a service-connected disability and possesses a valid military identification while hunting

• A person who is a retired former member of the United States Armed Services and hunting on farmland that is inactive farming status and owned by the person or the person’s Spouse, Child, Child’s Spouse, parent, grandparent, sibling, niece or nephew. A retired former member who hunts on farmland without a hunting license must possess the retired military identification card and written permission from the owner of the farm property specifying the relationship of the person to the owner of the property

Complimentary Maryland Lifetime Fishing License for Disabled Veterans and Former Prisoners of War: A complimentary lifetime license is available to Maryland residents who are 100% service-connected disabled Veterans or former prisoners of war. The license incorporates both the non-tidal angler’s license and the Chesapeake Bay sport fishing license. It does not, however, include the trout stamp. Applicants must furnish a letter of disability or a letter of certification from the Veterans Administration with their initial application.

Complimentary Maryland Fishing License for the Blind: Complimentary annual tidal and non-tidal licenses are available to residents and non-residents who are blind.

Discounted Maryland Fishing Licenses for Purple Heart Recipients: Any Maryland Veteran who has received a Purple Heart for injuries sustained in combat qualifies for a 50 percent discount on Maryland and fishing licenses.

Maryland Resident Service Members May Fish without a License when on Leave: A Service member who is a resident of MD, on active duty with the Armed Forces, and is on leave with official leave orders may fish without a license in the tidal waters of the State.

Complimentary Prisoner of War and Disabled Veteran Maryland Hunting Licenses: A complimentary lifetime hunting license is available to Maryland residents certified as a former Prisoner of War (POW) or a 100% service-connected disabled American Veteran (Veterans Administration documentation required).

• This free lifetime hunting license is available only at the Maryland Department of Natural Resources Licensing and Registration Service Centers

• This license also includes free, lifetime Archery Stamps, Muzzleloader Stamps, and Furbearer Permits

• The Maryland Migratory Game Bird Stamp, and Federal Migratory Bird Hunting and Conservation Stamp are required to be purchased annually and are not included with this license

Discounted Maryland Hunting Licenses for Purple Heart Recipients: Maryland residents who were recipients of the Purple Heart Award are eligible for a discounted hunting license and any associated stamps and permits. This year’s discounted rate is 50% of the regular price of the license or stamp. These discounted hunting licenses and stamps can only be purchased in person at a DNR Licensing & Registration Service Center. Documentation proving the Purple Heart Award was received by the hunter must be provided at the time of purchase. The Purple Heart medal does not suffice as proof of receiving the award. All other requirements apply for obtaining a hunting license and stamps.

Admission to State Parks: All entrance charges to MD state parks are waived for all veterans, both resident, and nonresident as well as all active-duty personnel. The waiver is applicable to the veteran only and not others in the same vehicle unless a per-vehicle charge is in effect at the time. In that case, the per-vehicle fee is waived.