Maryland Veteran Tax Exemptions 2026

Maryland offers one of the cleaner deals in the mid-Atlantic for disabled veterans: your VA disability compensation is tax-free under state law, and veterans who reach the top rating with a permanent and total designation can qualify for a full property tax exemption on their home. That combination can add up to meaningful savings every year, and it is available to you right now if you meet the criteria. This page covers both benefits and lays out exactly how to claim each one.

Does Maryland tax VA disability income?

No. Maryland does not tax VA disability compensation. The state treats it the same way the federal government does, which means it is left off your taxable income entirely. Whether you are rated 10 percent or 100 percent, your VA disability pay is not taxed by Maryland.

Maryland property tax exemption for disabled veterans

Full exemption at 100% P&T. 100% P&T means a full property tax exemption.

A full exemption means the property tax on your home goes to zero once you hit the qualifying threshold. That is not a reduction or a credit applied after the fact, it removes the bill entirely.

What rating do you need in Maryland?

The size of your break depends on your combined VA rating. In Maryland, the full break is reserved for veterans at the top rating, usually 100 percent or 100 percent Permanent and Total. Lower ratings may still qualify for a smaller break, so it is worth checking with your county even if you are not yet at 100 percent. Not sure what your combined rating works out to? Run it through our VA disability calculator first, and if you are aiming for the top tier, check whether you qualify for Permanent and Total status.

How to claim your Maryland exemption

1. Confirm your current combined rating and whether it is Permanent and Total. Your VA award letter shows both.
2. Gather your DD-214 and your VA disability award letter. Most Maryland offices ask for both.
3. Contact your county tax assessor for the property tax exemption, and the your state tax agency or Department of Veterans Affairs for the income side.
4. File before your county deadline. Many counties require you to apply once, then renew only if your rating changes.

Always confirm the current figures and deadlines with your county assessor and the Maryland Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.