Maine Veteran Financial Perks
Tax-Free Military Retirement Pay in Maine
Retired pay received from military service is exempt from Maine state income tax.
Thrift Savings Plan (TSP) and State Taxes
Although the Thrift Savings Plan (TSP) does not withhold state or local taxes, annual distributions are reported via IRS Form 1099-R. All TSP withdrawals are subject to Maine state tax, with early withdrawals potentially incurring steeper taxation.
Military Pay Tax Relief for Maine Residents
Active duty military income earned by Maine residents serving outside of the state is not subject to Maine income taxes.
Nonresident Military Spouse Tax Exemption
Qualifying nonresident spouses of military personnel are exempt from paying Maine income tax on wages earned within the state.
Tax Exclusion for Military Disability Retirement Pay
Disability retirement payments stemming from injuries or illnesses sustained during active duty service in the U.S. Armed Forces are excluded from Maine taxable income. Covered benefits include:
- VA disability compensation and pension payments
- Grants for specially adapted homes for wheelchair users
- Vehicle subsidies for Veterans who are visually impaired or have lost limbs
- Dependent-care assistance program benefits
State Tax Treatment of VA DIC Payments
Dependency and Indemnity Compensation (DIC) from the VA, provided to survivors of service members who died in the line of duty or from service-related causes, is tax-free under Maine law.
No Maine Tax on Survivor Benefit Plans
Maine exempts annuity payments from the Survivor Benefit Plan (SBP), Reserve Component Survivor Benefit Plan (RCSBP), and Retired Serviceman’s Family Protection Plan (RSFPP) from state income tax.
Combat Zone Tax Relief for Service Members
Maine aligns with federal tax regulations regarding income earned in designated combat zones. Pay excluded from federal adjusted gross income due to combat zone service is likewise not taxed by the state.
If a service member dies due to combat, terrorist activity, or related injuries, their Maine tax liability is waived for the year of death and any taxes paid for that year are refunded.
Filing and payment deadlines for state income tax are extended 180 days after:
- Departure from a combat zone
- End of continuous hospitalization due to combat-related injuries
This extension includes any remaining days left to file taxes at the time the member entered the combat zone.
Maine Property Tax Relief for Veterans and Families
General Veteran Property Tax Exemption
Veterans who reside in Maine and were honorably discharged are eligible for a $6,000 reduction in assessed property value if they meet at least one of these conditions:
- Aged 62 or older and served during a recognized period of war
- Awarded the Armed Forces Expeditionary Medal
- Have a 100% VA disability rating or receive compensation at the 100% rate due to individual unemployability
Paraplegic Veteran Property Tax Exemption
Veterans with paraplegia who received a VA grant for specially adapted housing and were discharged under honorable conditions may qualify for a $50,000 exemption.
Property Tax Exemption for Surviving Spouses
Unmarried surviving spouses of Veterans may receive property tax relief if:
- They are Maine residents
- Their deceased spouse qualified for the exemption
- They currently receive VA survivor pension or compensation
Minor Children of Veterans
Children under 18 who live in Maine and receive federal survivor benefits due to a parent’s Veteran status may also be eligible for the property tax exemption.
Widowed Parents of Deceased Veterans
A widowed parent can claim a property tax exemption if:
- They reside in Maine and are 62 years or older
- They never remarried and were not divorced from the Veteran’s other parent at the time of death
- They receive federal compensation due to their child’s service-connected death
Sales Tax in Maine
- State Rate: 5.5%
- Local Add-ons: Not permitted
- Average Total Sales Tax Rate: 5.5%
Recreation
Lifetime Access to Maine State Parks and Museums for Veterans:
Veterans who reside in Maine and were honorably discharged (or discharged under honorable conditions) are eligible for a complimentary lifetime pass for day-use access to state parks, museums, and historic locations managed by the Maine Department of Conservation. This pass does not cover entry to:
- Acadia National Park
- Baxter State Park
- Allagash Wilderness Waterway
- Penobscot Corridor
- Penobscot Narrows Observatory
- Maine Wildlife Park
Complimentary Day-Use Pass for Active Duty Members:
Active duty U.S. Armed Forces personnel can obtain a free day-use pass for Maine state parks and historic sites. This benefit extends to their spouse and children, provided they are accompanied by the service member.
Free Hunting, Fishing, and Trapping License for Disabled Veterans:
Maine residents and nonresidents (if reciprocal privileges exist) who are Veterans with a 50% or greater service-connected disability and an honorable discharge are eligible for a free comprehensive license to hunt, fish, and trap. This includes all required permits and permissions, plus a guide’s license for those who qualify. Eligible Veterans may also receive one expanded archery either-sex deer permit or one antlerless deer permit. Veterans must apply for deer and moose permits annually.
Discounted Licenses for Maine Residents Stationed Out of State:
Maine residents on active duty and stationed permanently outside the state may purchase a combined hunting and fishing license for just $3 upon return. Their spouse and dependent children living with them are eligible for a $20 combo license or a $10 hunting license.
Resident Rate for Nonresident Active Duty Service Members and Families:
Nonresident active duty personnel stationed in Maine, along with their spouse and dependent children living with them, may purchase hunting, trapping, and fishing licenses at the same rates as Maine residents.
Exemption from Hunter Safety Courses for Certain Active Duty Members:
Maine residents serving in the military and permanently assigned overseas who are home on leave are not required to complete the hunter, archery, or crossbow safety training courses.
Controlled Moose Hunt for Disabled Veterans:
Each year, the Maine Department of Inland Fisheries and Wildlife designates 25 moose permits for a special hunt in Aroostook County, exclusively for disabled Veterans. This opportunity is available only once per individual—Veterans who harvest a moose during this hunt become ineligible for future participation. Selected Veterans will receive logistical assistance through the Maine Bureau of Veterans’ Services and its partnering organizations.
Maine Military & Veteran Miscellaneous Benefits
Maine National Guard Foundation Fund: This fund provides emergency financial assistance in the form of loans or grants to eligible Service members serving in the Maine National Guard or U.S. Armed Forces Reserves and their families who reside in Maine.
Protection of Veterans’ Military Service Records: Any official military service records filed with local, county, or state agencies in Maine remain confidential for 62 years from their date of issuance.
No-Cost Public Records for VA Claims: Maine Veterans or their representatives can obtain certified copies of public records at no charge when those documents are required to apply for U.S. Department of Veterans Affairs benefits.
Maine’s Honoring Veterans Program: The state offers a “Honoring a Veteran” initiative to pay tribute to Maine Veterans who served with honor. The program recognizes fallen service members, Purple Heart recipients, former prisoners of war, and all honorably discharged Veterans.
Education Programs
Maine Veterans Upward Bound (VUB) Program:
This federally sponsored initiative offers no-cost support to qualifying Veterans who wish to pursue higher education. The goal of the Veterans Upward Bound program is to strengthen the academic and personal skills needed for college admission and long-term success. Support services include:
- Help with college admissions and financial aid applications
- Career guidance and counseling
- Refresher courses in English and mathematics
- Training in computer skills
- Personalized support and mentoring
Maine Veterans’ Dependents Educational Benefits Program:
Maine grants full tuition coverage and waives all associated fees for eligible Spouses and children of qualified Veterans or active Service members. This benefit can be used at University of Maine System schools, Maine Community Colleges, and the Maine Maritime Academy.
- Spouses may pursue certificate, associate, bachelor’s, or master’s degrees.
- Children may use the benefit for certificate, associate, or bachelor’s degree programs but must start before turning 22.
- Spouses have a 10-year eligibility window from the date they enroll.
- Children have 6 years of eligibility starting from their first enrollment.
Recipients must maintain at least a 2.0 GPA (a “C” average) to continue receiving the benefit.
Maine National Guard Education Assistance Program:
This program provides full in-state tuition for eligible members of the Maine National Guard attending a public college or university in Maine.
- It supports both full- and part-time students for up to 130 credit hours, which may be applied toward a degree, certificate, or licensure.
- Non-tuition costs such as books, housing, lab fees, and other charges are not included.
To qualify, Guard members must:
- Have completed basic training or received a commission
- Serve at least one year in the Maine National Guard after receiving the tuition assistance
- Apply for all other applicable tuition benefits first, such as:
- Federal military tuition assistance
- Employer-sponsored tuition programs
- Federal financial aid (e.g., Pell Grant)
This benefit only covers tuition costs remaining after all other aid is applied.
Ineligibility conditions include:
- Possession of a bachelor’s degree or equivalent
- Nine or more unexcused absences from unit drills
- Incomplete annual training without proper authorization
Participants must also maintain academic good standing with a GPA above 2.0.
Maine Interstate Compact on Educational Opportunity for Military Children (MIC3):
This agreement is intended to help military-connected students overcome education-related challenges caused by frequent relocations or deployments. It ensures:
- Timely enrollment in new schools without penalties from delayed records or differing entrance criteria
- Seamless transitions in grade placement, attendance policies, course content, grading, and testing
- Fair access to academic programs and extracurricular activities
- Smooth pathways to graduate on schedule
- Consistent rules and enforcement across member states
- Better sharing of information among schools, states, and military families
- Collaboration between school systems, students, and parents to support student achievement
- Alignment with other educational agreements impacting military youth
Maine Purple Star School Program:
This program honors schools that go above and beyond to support students from military families. Schools earning the Purple Star designation receive a physical award recognizing their commitment.
To qualify, a school must:
- Designate a staff member as a military family liaison who is specially trained to understand and support the needs of military-connected students
- Ensure staff are educated on the unique challenges these students face
- Maintain a dedicated resource page on the school’s website to provide information and support to military families
Housing: Below are the locations of Veterans Homes.
Maine operates six Veterans’ Homes across the state, providing both long-term and short-term skilled nursing care, as well as rehabilitative and therapeutic services. These facilities are available to honorably discharged Veterans and qualifying family members.
Maine State Veterans Home at Augusta
Maine State Veterans Home at Bangor
Maine State Veterans Home at Caribou
Maine State Veterans Home at Machias
Maine State Veterans Home at Scarborough
Maine State Veterans Home at South Paris
Admission Requirements:
To be eligible, applicants must be honorably discharged Veterans who either resided in Maine when they entered military service or were residents at the time of applying. Veterans must have completed at least one day of active duty—excluding training—in either an active or reserve branch of the U.S. Armed Forces. Combat service or a service-connected disability is not a requirement. If space permits, spouses, surviving spouses, and Gold Star parents of eligible Veterans may also be admitted.
Employment & Job Training Benefits for Maine Veterans
Veterans’ Employment Assistance through Maine Career Centers
Maine Career Centers provide tailored support to transitioning Service members, Veterans, and their spouses. Services include:
- Job search support, resume development, and interview prep
- Translating military experience into civilian career paths
- Referrals to relevant state and federal resources
Eligible Veterans and spouses receive priority of service, meaning they are served first or given access when resources are limited.
Who Qualifies for Priority of Service?
- Veterans: Must have served on active duty (not including training) and been discharged under conditions other than dishonorable.
- Spouses: Must be the spouse or un-remarried surviving spouse of:
- A Veteran who died of a service-connected condition
- A service member who is MIA, captured, or forcibly detained for 90+ days
- A Veteran with a total service-connected disability
- A Veteran who passed away while such a disability existed
Veterans with Additional Employment Support Eligibility:
Veterans can work directly with Career Center Veterans’ Representatives if they are:
- Service-connected disabled
- Homeless or at risk
- Recently separated and unemployed
- A high school non-graduate
- Justice-involved within the past year
- Low income
- Ages 18–24
- A Vietnam Era Veteran
Professional Licensing Support
Maine’s Professional & Occupational Licensing Initiative
The Office of Professional and Occupational Regulation (OPOR) helps Veterans, Service members, and spouses accelerate licensure by recognizing military experience.
- Temporary licenses are available for those with valid credentials from other states, easing transitions into Maine’s workforce.
- Applies to all OPOR-regulated fields.
State Employment Protections & Preferences
Military Leave for State Employees
State workers serving in the Reserve or National Guard are granted 17 paid military leave days per year, applicable to active duty or training. Time beyond this is unpaid, but employees may use accrued leave if desired.
State Active Duty Pay for Maine Guard Members
When activated by the state, Maine National Guard members are compensated at a rate equal to federal active duty pay—at minimum, based on 12-hour days at state minimum wage.
Veteran & Gold Star Spouse Retention in State Jobs
During workforce reductions, eligible Veterans and Gold Star spouses have priority to retain their jobs over others with equal seniority, status, and performance.
Reemployment Rights
Maine state employees returning from military service are protected under USERRA and state law. They are generally reinstated to their original role or a similar one, depending on the length of service.
Veteran Hiring Preferences
- Maine State Jobs: Veterans and Gold Star spouses receive interview preferences. If not selected, the Bureau of Human Resources assists in identifying other suitable roles.
- Federal Employment Preferences:
Veterans may be awarded an additional 5 or 10 points on federal civil service exams based on service details or disability ratings.- 5-Point Preference: For wartime service or designated periods (e.g., Gulf War, post-9/11).
- 10-Point CP Preference: For those with a 10–30% service-connected disability.
- 10-Point CPS Preference: For Veterans with 30%+ service-connected disability.
- 10-Point XP Preference: For Veterans with other service-connected disabilities or Purple Heart recipients.
- 10-Point Derived Preference: For certain spouses, surviving spouses, or mothers of qualifying Veterans.
Additional conditions apply for post-1980 enlistees or for those with less than 24 months of continuous active duty.
Uniformed Services Employment & Reemployment Rights Act (USERRA)
USERRA provides robust federal protections for service members, including:
- Job Protection: Reemployment rights for up to five years of cumulative service (with exceptions for training, recall, or initial enlistments).
- Disability Accommodation: Employers must make reasonable efforts to accommodate service-connected disabilities.
- Seniority & Benefits: Veterans return to their prior roles with the same seniority, pay, and benefits as if they had never left.
- Skill Refresh: Employers must help returning Veterans retrain if needed.
- Health & Pension Coverage: Continued healthcare available for up to 24 months for longer service periods; pension plans are protected.
USERRA Eligibility:
Applies to Veterans, Reserve, and National Guard members who leave civilian jobs for military service. The Department of Labor’s Veterans’ Employment and Training Service (VETS) assists with claims—including for federal employees.
Burials and Memorials
Make sure your wishes concerning burial in a national cemetery and the use of a VA-provided headstone are clearly documented and stored with your important paperwork and medical records. Veterans who were discharged under conditions other than dishonorable, along with their eligible dependents, are entitled to burial at no cost.
National Cemeteries include:
Augusta: Mount Pleasant Cemetery Soldiers’ Lot
Togus: Togus National Cemetery
Maine VA Benefit Resources
Veterans in Maine have access to a Regional VA Benefits Office and a VA Medical Center to support their healthcare and benefits needs.
Maine VA Regional Benefits Office
- Augusta: Togus Regional Office
Maine VA Medical Centers
- Augusta: VA Maine Healthcare System – Togus
Essential Information on Maine Veteran Benefits
If you’re a Veteran in Maine applying for VA benefits for the first time, be sure to include a copy of your DD Form 214. This document verifies key service details such as discharge status, full name, Social Security number, branch of service, and service dates. Most VA benefits are available to those with an Honorable or General discharge.
Keep all important paperwork and medical records securely stored in a place accessible to both you and your family—preferably in a fireproof safe or similarly secure location to prevent loss or damage.
Eligibility for most VA benefits requires discharge from active duty military service under conditions other than dishonorable. Active duty refers to full-time service in the Army, Navy, Air Force, Marine Corps, Coast Guard, or as a commissioned officer in the Public Health Service, Environmental Services Administration, or NOAA.
Veterans who received a dishonorable discharge following a general court-martial may be disqualified from receiving VA benefits. However, those who are incarcerated or on parole may still be eligible for certain benefits. For clarity on these cases or if you’ve received multiple discharges under varying conditions, consult a VA regional office.
Information current as of November 2023.
