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Maryland
Military Benefits

A plain-English guide to every major Maryland law and federal protection that affects servicemembers, veterans, and military families stationed in or relocating to Maryland.

Retirement
Up to $15,000 military retirement exclusion (age-based phases)
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Active duty pay exempt from state tax
Property tax
Veteran property tax credit
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Strong VA medical network (Walter Reed, Fort Belvoir proximity)
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The rules families feel first. Jump to the benefit, then who to call.

Military Pay and State Income TaxMaryland taxes military pay and retirement income, though certain exclusions and credits are available.Military Active Duty PayProperty Tax Exemptions and DiscountsMaryland provides a full property tax exemption for veterans rated 100% permanently and totally disabled by the VA. Additional partial exemptions may apply for veterans with lower disability ratings.100% Disabled VeteransVehicle Registration and Driver LicenseSCRA protects active duty servicemembers from being required to register vehicles in Maryland while stationed here on orders. Maryland also offers veteran-specific license plates and registration benefits for disabled veterans.Out-of-State Vehicle RegistrationMilitary Spouse Employment and LicensingMaryland has enacted military spouse licensing reciprocity laws requiring expedited license transfers for qualified professionals. Military spouses may also maintain their home state domicile and vehicle registration regardless of time spent in Maryland.Maryland Military Spouse License Reciprocity

On this page

  1. 01Military Pay and State Income Tax
  2. 02Property Tax Exemptions and Discounts
  3. 03Vehicle Registration and Driver License
  4. 04Military Spouse Employment and Licensing
  5. 05SCRA
  6. 06Education Benefits in Maryland
  7. 07Voting and Residency Rights
  8. 08Contacts
  9. 09School liaisons
  10. 10Base guides

Not legal advice. Laws change. Verify current rules with your installation JAG office, Maryland state tax authority, or a licensed Maryland attorney before making financial or legal decisions based on this guide. Last reviewed June 2026.

01 · Military Pay and State Income Tax

Military Pay and State Income Tax

Maryland taxes military pay and retirement income, though certain exclusions and credits are available.

Military Active Duty Pay

Maryland taxes active duty military pay for residents but allows a subtraction for military retirement pay. For tax year 2026, retirees under age 55 may subtract up to $12,500 and those age 55 or older may subtract up to $20,000 (Maryland Form 502). A 2026 bill (HB 857) would raise the under-55 amount to $20,000 if enacted; until then, use the figures above and confirm at marylandtaxes.gov or veterans.maryland.gov before filing. Maryland's top state income tax rate is 6.5% on taxable income over $1,000,000 ($1,200,000 for joint filers), plus county local income taxes.

Conditions Apply

VA Disability Compensation

VA disability compensation is fully exempt from Maryland state income tax. This is a federal-level exemption honored automatically. This applies to all ratings including partial disability compensation and Combat-Related Special Compensation (CRSC).

Military Spouse Income

Under the Veterans Benefits and Transition Act of 2018, military spouses who maintain domicile in another state do not owe Maryland income tax on wages earned in Maryland while accompanying their servicemember on military orders. This applies regardless of how long the spouse has lived in Maryland.

Survivor Benefit Plan (SBP) Payments

SBP annuity payments to surviving spouses are subject to Maryland income tax but may qualify for the retirement income credit or partial exclusion. Surviving spouses should consult a military-aware tax professional for current rules.

Conditions Apply

Do this next. Maryland military retirement income deductions are claimed on Maryland Form 502. The deduction increases annually. Contact the Maryland Comptroller at (800) 638-2937 for the current deduction amount and filing instructions.

02 · Property Tax Exemptions and Discounts

Property Tax Exemptions and Discounts

Maryland provides a full property tax exemption for veterans rated 100% permanently and totally disabled by the VA. Additional partial exemptions may apply for veterans with lower disability ratings.

100% Disabled Veterans

Maryland veterans rated 100% P&T disabled receive a full property tax exemption on their primary residence. The exemption passes to a surviving spouse who remains in the home unmarried. Apply through your county SDAT office with your VA award letter and DD-214.

Surviving Spouse Protection

The surviving spouse of a 100% P&T disabled veteran in Maryland retains the full property tax exemption as long as they remain unmarried and continue to occupy the property as their primary residence. The exemption passes automatically without the spouse needing to re-qualify with a new VA rating.

Active Duty Vehicle Personal Property Tax

Active duty servicemembers stationed in Maryland on military orders are not required to pay Maryland personal property taxes on vehicles registered in their home state. SCRA protects home-state registration from challenge. If you register a vehicle in Maryland, local personal property tax rules apply.

Conditions Apply

Do this next. Apply for the 100% P&T property tax exemption at your county assessor or auditor office. Bring your VA award letter showing 100% P&T rating, DD-214, and proof of primary residence. Processing typically takes 30 to 60 days.

03 · Vehicle Registration and Driver License

Vehicle Registration and Driver License

SCRA protects active duty servicemembers from being required to register vehicles in Maryland while stationed here on orders. Maryland also offers veteran-specific license plates and registration benefits for disabled veterans.

Out-of-State Vehicle Registration

Active duty servicemembers are not required to register their vehicles in Maryland while stationed here under SCRA. You may keep home-state plates and registration. Maryland cannot require registration change based solely on military orders. Keep a copy of current orders in your vehicle at all times in case of a traffic stop.

100% Disabled Veterans

Veterans with a 100% P&T disability rating may receive a vehicle registration fee waiver or significant reduction in Maryland. Free specialty disabled veteran license plates are also available. Contact Maryland SDAT, Property Tax to verify current eligibility and apply.

Driver License

A Maryland driver license for a servicemember or dependent stationed outside the state does not expire during active duty. The license remains valid for 90 days after separation or return to Maryland. When you PCS back, you will have at least 60 days to renew before enforcement.

Military Spouse Vehicle and License

Military spouses may maintain their home state vehicle registration and driver license while residing in Maryland due to military orders. They are not required to obtain a Maryland license or plates. This applies regardless of how long they have lived in the state.

Do this next. SCRA vehicle protections apply at traffic stops. Carry a printed copy of current orders in your vehicle. If law enforcement questions your out-of-state plates, calmly explain your active duty status and provide orders. If you encounter issues, contact your installation JAG office.

04 · Military Spouse Employment and Licensing

Military Spouse Employment and Licensing

Maryland has enacted military spouse licensing reciprocity laws requiring expedited license transfers for qualified professionals. Military spouses may also maintain their home state domicile and vehicle registration regardless of time spent in Maryland.

Maryland Military Spouse License Reciprocity

Maryland Business Regulation Article 17-701 requires licensing boards to grant expedited temporary permits and full licenses to military spouses within 30 to 60 days. Maryland has enacted strong military spouse employment protections including unemployment benefits for spouses who leave work to accompany a PCS move.

Unemployment Compensation for Spouses Following PCS

Maryland law allows a military spouse who voluntarily leaves employment to accompany their servicemember on a PCS move to collect unemployment benefits. They are not considered to have voluntarily quit without good cause. The spouse must have worked in Maryland prior to the PCS move.

Federal Hiring Preference for Military Spouses

Military spouses of active duty servicemembers are eligible for non-competitive appointment to federal civil service positions under Executive Order 13473. This applies at any federal agency with a presence near Maryland installations, including DoD civilians, VA, and other federal employers.

Remote Work and Maryland Income Tax

A military spouse who maintains domicile in another state and works remotely for an out-of-state employer while living in Maryland on military orders may be exempt from Maryland income tax on those remote wages. Maryland-source income may still be taxable. Consult a military-aware CPA for your specific situation.

Conditions Apply

Do this next. Contact your installation Family Support Center for a list of Maryland licensing boards with military spouse reciprocity processes. Each board has its own form and documentation requirements. Submit applications with your spouse's military orders, your out-of-state license copy, and verification of good standing from the prior state.

05 · SCRA

SCRA, Federal Protections That Apply in Maryland

Maryland courts and landlords are required to honor all federal SCRA protections. Your installation JAG office can provide free legal assistance for any SCRA issue including lease terminations, interest rate caps, and foreclosure stays.

Lease Termination

You can terminate any Maryland residential lease with 30 days written notice upon receiving PCS orders or a deployment of 90 or more days. Deliver written notice and a copy of orders to the landlord. Termination is effective 30 days after the next rent due date. Maryland landlords cannot charge early termination fees to servicemembers exercising SCRA rights.

6% Interest Rate Cap on Pre-Service Debt

Any debt taken on before entering active duty, including mortgages, car loans, credit cards, and student loans, must be reduced to 6% interest upon written request. Submit written notice with a copy of orders to each lender. The cap applies retroactively, excess interest above 6% is forgiven, not deferred.

Foreclosure Protection

Maryland courts cannot foreclose on a servicemember's primary residence during active duty without a court order. The protection extends for 1 year after separation. Contact your installation JAG immediately if you receive any foreclosure notice while on active duty.

Civil Court Stay of Proceedings

Maryland courts must grant at least a 90-day stay of civil proceedings when a servicemember cannot appear due to military duties. Courts cannot enter a default judgment against an active duty servicemember without a hearing and an attorney appointed to represent their interests.

Do this next. Every Maryland installation has a JAG Legal Assistance Office. Contact information is in the Key Contacts section below. SCRA violations should be reported to JAG immediately. Landlords and lenders familiar with military areas are generally aware of the law, but violations do occur.

06 · Education Benefits in Maryland

Education Benefits in Maryland

Maryland provides in-state tuition for active duty families stationed in the state. Multiple Yellow Ribbon schools operate in Maryland, covering tuition and fees beyond the GI Bill cap for eligible veterans at participating private and out-of-state schools.

In-State Tuition for Active Duty Families

Federal law and Maryland policy grant immediate in-state tuition eligibility to active duty servicemembers stationed in Maryland, their spouses, and dependents. No 12-month waiting period is required. This applies to all Maryland public colleges and universities.

Post-9/11 GI Bill and Yellow Ribbon Schools

Maryland has multiple Yellow Ribbon-participating schools that cover tuition and fees beyond the GI Bill state cap at no additional cost to the veteran. For veterans with 100% GI Bill eligibility, Yellow Ribbon schools eliminate out-of-pocket tuition entirely. Verify current participation at benefits.va.gov/GIBILL before enrolling.

Maryland National Guard Education Assistance

Maryland National Guard members may receive state tuition assistance supplementing federal MGIB-SR benefits. The program can provide substantial tuition coverage at Maryland public schools. Contact the Maryland National Guard Education Office for current benefit amounts and eligibility.

In-State Tuition Preserved After PCS Out of Maryland

Dependent children who establish domicile in Maryland and begin enrollment at a Maryland public university do not automatically lose in-state tuition eligibility if their active duty parent PCSes out of state, provided they maintain continuous enrollment.

Conditions Apply

Do this next. Each Maryland public university has a Veterans Services Office with a School Certifying Official (SCO). Contact the SCO as soon as you enroll to initiate GI Bill certification. Processing can take 4 to 8 weeks; plan accordingly for initial enrollment periods.

07 · Voting and Residency Rights

Voting and Residency Rights

Maryland must honor your right to maintain home-state domicile and vote by absentee ballot. Your installation Voting Assistance Officer can help you register and request a ballot under UOCAVA.

Maintain Home State Domicile

Being stationed in Maryland does not change your legal domicile. You may continue to vote in your home state via absentee ballot under the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA). Submit a Federal Post Card Application (FPCA) at FVAP.gov. Your installation Voting Assistance Officer (VAO) can assist.

Establish Maryland Domicile Voluntarily

If you want to vote in Maryland and claim it as your home state, register at your county election office. Consider the financial implications of switching domicile, including Maryland income tax rates and property tax rules, compared to your current home state.

Conditions Apply

Military Spouse Independent Domicile

Military spouses may independently maintain domicile in any state they choose under VBTA 2018. It does not have to match the servicemember's domicile. Maryland cannot force a spouse to establish Maryland domicile based on their physical presence in the state.

Absentee Voting While Deployed

Maryland accepts the Federal Post Card Application (FPCA) as a combined registration and absentee ballot request. UOCAVA voters may request electronic ballot transmission. Submit your FPCA at least 45 days before any election to ensure ballot delivery and return.

Do this next. Your installation Voting Assistance Officer (VAO) is the best resource for domicile and absentee voting questions. Contact your unit's chain of command to locate your VAO. The Federal Voting Assistance Program at FVAP.gov provides state-specific absentee ballot request forms and deadlines.

Call before it is urgent

Maryland key contacts

Tap the number. These desks handle tax, licensing, benefits, and JAG.

Maryland DVAState benefits, veterans ID, property tax exemptions(800) 446-4926Fort Meade JAGSCRA, wills, POA, family law(301) 677-9504NAS Pax River LegalSCRA, lease terminations, notary(301) 342-3920Maryland SDAT, Property TaxVeterans property tax exemption applications(410) 767-1184Maryland Higher Ed CommissionIn-state tuition, Guard education grants(410) 767-3301UMGC Veterans ServicesGI Bill certification, military student support(240) 582-2736

State Legislature

Veterans and Servicemember Advocacy

Legislative Committee
Joint Committee on Veterans Affairs and Retirement
This committee oversees legislation affecting active duty servicemembers, veterans, and military families in Maryland. It handles bills on veterans benefits, military employment protections, property tax exemptions, and National Guard policy.
Website: mgaleg.maryland.gov
How to Engage
Contact Your State Representative
Military families can contact their state legislators to weigh in on veteran and servicemember legislation. Find your Maryland representative using your home address at mgaleg.maryland.gov. Committee hearings on veterans bills are typically open to the public and remote testimony is often accepted.

Research-Ranked

Military-Friendly Colleges in Maryland

Rankings based on Military Times Best for Vets, GI Jobs Military Friendly Schools, and Victory Media research methodology. Yellow Ribbon participation verified annually.

University of Maryland Global Campus
Military Times #1 Best for Vets Online
Nation's top online school for active-duty military, serves more servicemembers than any university
University of Maryland College Park
GI Jobs Military Friendly
Yellow Ribbon participant, strong ROTC, veteran services
Towson University
Military Friendly
Near Fort Meade corridor, veteran resource center

Rankings and program details change annually. Verify current Yellow Ribbon participation and benefit amounts at benefits.va.gov/GIBILL before enrolling.

Free for military families

School liaison officers in Maryland

Every Maryland military installation has a School Liaison Officer on staff, free of charge. Call before orders drop to get ahead of enrollment deadlines.

Fort Meade

DSN
312-677-6000

NAS Patuxent River

DSN
342-3113

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Maryland housing and schools

Base guides, BAH, and agents who already know this state.

MD BAH RatesCalculate your housing allowance for Maryland installationsOpenCompare All StatesSee how Maryland compares to other states for military familiesOpenPCS PlannerPlan your move to Maryland with our free military PCS toolOpenCareer TransitionCivilian career paths for veterans separating in or near MarylandOpen

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