Massachusetts Veteran Tax Exemptions 2026

Your VA disability pay is not subject to Massachusetts state income tax, so that money comes to you without a state-level cut. The Commonwealth also provides a property tax abatement for disabled veterans, with the amount tied to your rating and circumstances. It may not be the largest break in New England, but it is money you are entitled to and the process for claiming it is straightforward. Read on for what to expect and what to bring when you apply.

Does Massachusetts tax VA disability income?

No. Massachusetts 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 Massachusetts.

Massachusetts property tax exemption for disabled veterans

$400 to $1,500 abatement. Property tax abatement tiered by rating.

The abatement reduces your property tax bill directly, and the amount you receive grows with your rating. Even a partial rating puts something back in your wallet each year.

What rating do you need in Massachusetts?

The size of your break depends on your combined VA rating. In Massachusetts, the break is tiered, so even a partial rating can lower your property tax bill, and the amount climbs as your rating climbs. 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 Massachusetts 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 Massachusetts 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 Massachusetts Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.