Honoring Service: Maryland Tax Exemptions for Disabled Veterans and Their Families
Maryland recognizes the sacrifices made by its veterans and their families by offering various tax exemptions to ease their financial burdens. These benefits are available at both state and local levels, providing significant relief to those who have served.
State Property Tax Exemptions
100% Disabled Veterans
Veterans who have been rated as 100% permanently and totally disabled due to service-connected conditions are eligible for a complete exemption from real property taxes on their primary residence and the surrounding yard. This exemption is not subject to the standard September 1 filing deadline, allowing eligible veterans to apply at any time.
Surviving Spouses
Unremarried surviving spouses of veterans who were 100% disabled or who died in the line of duty may also qualify for this property tax exemption. Eligibility requires proper certification from the U.S. Department of Veterans Affairs (VA).
Local Property Tax Exemptions
Several Maryland counties offer additional property tax benefits:
Anne Arundel County: Provides a tax credit benefit for eligible veterans.
Baltimore County: Offers exemptions as detailed in Section 11-2-106 of the county code.
Calvert County: Grants a real property tax refund for certain veterans.
Cecil County: Provides a Senior/Military Tax Credit for veterans and surviving spouses.
Frederick County: Offers specific tax credit instructions and applications for veterans.
Harford County: Details exemptions in Bill 17-021 and associated regulations.
Howard County: Provides various tax credits for eligible residents.
Montgomery County: Offers a property tax credit for disabled veterans.
Washington County: Has a Disabled Veterans Tax Credit Program Application available.
It's important to note that local exemptions may vary, and contacting your county's finance office is recommended to understand specific benefits.
Application Process
To apply for these exemptions, eligible individuals must submit the appropriate application forms along with VA certification of disability status. The Maryland Department of Veterans & Military Families (DVMF) offers assistance in streamlining the VA disability verification process. For support, contact the DVMF service program office in Baltimore at 800-446-4926, ext. 6450.
Additional Tax Benefits
Beyond property tax exemptions, Maryland provides other tax benefits for veterans:
Military Retirement Income Tax Exemption: Military retirees can deduct a portion of their retirement income from state taxes. Currently, individuals under 55 can deduct $5,000, while those 55 and older can deduct $15,000.Proposed legislation aims to increase this exemption to $25,000 in 2023 and $40,000 in 2024, eliminating the age distinction.
Pension Exclusion: Individuals who are 65 or older or totally disabled (or whose spouse is totally disabled) may qualify for Maryland’s maximum pension exclusion, allowing them to subtract some of their taxable pension and retirement annuity income from their federal adjusted gross income.
Final Thoughts
Maryland's commitment to its veterans and their families is evident through these tax exemptions and benefits. By alleviating financial burdens, the state honors the service and sacrifices of those who have served. Veterans and their families are encouraged to explore these benefits and consult with local tax assessment offices or the DVMF for personalized assistance.
For more detailed information and to access application forms, visit the Maryland Department of Veterans & Military Families.