Tax Benefits

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Property Tax Exemption:

A property tax exemption may be available to the following individuals, for their primary residence located in the State of Maryland:

  • Veterans who are 100% disabled for service-connected causes. The exemption may pass to the veteran’s spouse upon his or her death.
  • A surviving spouse of active duty military personnel who died in the line of duty
  • A surviving spouse of a 100% disabled veteran

Use the links below to download the appropriate application, contact your county tax assessor’s office or call 888.246.5941.

Military Retired Pay Income Tax Exemption

Military retirees are exempt from Maryland income tax on the first $5000 of their retirement income. In addition, military retirees who are over the age of 65, totally disabled, or who have a spouse who is totally disabled, receive an additional subtraction.  For more information call 1-800-MD-TAXES.

Vessel Excise Tax

Active duty military personnel are exempt from the 5% vessel excise tax levied on the sale, resale or transfer of a vessel. The exemption is for not more than one year to current owners of vessels who are members of the armed services and who are serving on active duty.  For more information go to the MD Department of Natural Resources web site. 

Vehicle Registration - Tax Credit

Active duty military members establishing residency in Maryland are eligible for a tax credit for any titling tax paid in another state when titling and registering a vehicle within one year of moving to Maryland. For more information, go to the MD Department of Motor Vehicles web site.