Maryland Financial Benefits for Veterans
Maryland offers a broad range of financial incentives to support Veterans, military retirees, and their families. These include state income tax exemptions, property tax relief, and special tax provisions for active duty and surviving family members. Highlights of Maryland’s Veteran-related financial benefits include:
State Income Tax Benefits
- Military Retirement Pay Exemption
Retired Service members can deduct up to $5,000 of their military pension income from their Maryland state taxable income. This exemption increases to $15,000 for those aged 55 and older. - Disability Retirement Pay
Disability retirement payments from the VA—including compensation, pensions, housing grants, and vehicle subsidies—are not subject to Maryland state income tax. - VA Dependency and Indemnity Compensation (DIC)
DIC benefits received by eligible survivors of Service members or Veterans who died in the line of duty or from service-connected conditions are tax-exempt. - Survivor Benefit Plan (SBP), RCSBP, and RSFPP Annuities
Surviving spouses may deduct up to $5,000 of their survivor annuity from taxable income; this increases to $15,000 at age 55. - General Pension Exclusion
Residents age 65+ or those who are disabled (or whose spouse is disabled) may be eligible for a pension income exclusion of up to $34,300. - Overseas Military Pay Exclusion
Maryland residents serving outside the U.S. on active duty may exclude up to $15,000 of their military pay, provided their total military income is below $30,000.
Property Tax Relief
- 100% Disabled Veteran Property Tax Exemption
Veterans with a 100% permanent and total VA disability rating (or considered unemployable) are exempt from all real property taxes on their primary residence and lot.
Un-remarried surviving spouses of eligible Veterans or Service members killed in action may also qualify. - County-Level Property Tax Credits
Many Maryland counties offer additional property tax credits for eligible Veterans and their surviving spouses. These vary by locality and apply to primary residences.
Other Tax Provisions
- Military Spouse Residency Relief
Spouses of nonresident active duty Service members stationed in Maryland are exempt from state income tax on wages earned in Maryland under military orders. - Vessel Excise Tax Exemption
Active duty personnel stationed in Maryland are exempt for one year from the 5% boat excise tax on vessels registered out of state and relocated to Maryland during a PCS. - Combat Zone Tax Extensions
Maryland aligns with the IRS to provide a six-month extension to file and pay state taxes for Service members and spouses serving in combat or hazardous duty zones. - Combat Zone Tax Forgiveness
Maryland will reduce or forgive state income taxes for Service members who die while serving in a combat zone or hazardous duty area, or from wounds received in such locations. This also applies to deaths resulting from terrorist or military actions outside the U.S.
Sales Tax Overview
- State Sales Tax Rate: 6.0%
- Local Add-Ons: None – counties cannot add additional sales tax
- Exempt Items:
- Prescription medications
- Unprepared food (groceries)
Recreation
Complimentary Maryland Hunting and Fishing Licenses for Disabled Veterans and Former POWs:
Maryland residents who are Veterans with a 100% service-connected disability or are former Prisoners of War are eligible for a no-cost, lifetime hunting and fishing license. This includes permanent access to archery, muzzleloader, sika deer stamps, and furbearer permits. However, it does not cover the Maryland Migratory Game Bird Stamp or the Federal Migratory Bird Hunting and Conservation Stamp.
These lifetime licenses are exclusively available through Maryland’s Department of Natural Resources (DNR) Licensing and Registration Service Centers, and Veterans must present documentation verifying their eligibility at the time of application.
Half-Price Licenses for Purple Heart Recipients:
Maryland residents who have received the Purple Heart are entitled to purchase state hunting and fishing licenses at a 50% discount. This benefit is accessible only through DNR Service Centers, and applicants must show official evidence of receiving the award.
Resident Rates for Nonresident Active Duty Personnel:
Active duty military personnel stationed in Maryland but residing elsewhere can purchase Maryland hunting licenses at in-state rates.
License-Free Hunting and Fishing for Service Members on Leave:
Active duty personnel who are Maryland residents or who are stationed in Maryland and are currently on leave can hunt and fish in the state without obtaining a hunting or fishing license. This exemption includes deer stamps and Managed Hunt Permits.
Maryland State Parks Access for Military and Veterans:
Members of the Maryland National Guard and active duty service members are granted free entry to Maryland State Parks by showing their military ID. This waiver applies solely to the service member.
Additionally, both resident and nonresident Veterans receive a waiver for day-use fees at these parks. This exemption is valid for the Veteran only, unless the park charges per vehicle—in which case, the fee for the vehicle is also waived.
Maryland Military & Veterans Miscellaneous Benefits
The Maryland Veterans Services Specialist (VSS) Program was created to enhance service coordination for members of the military community who are employed by the state government. Each Maryland State Department or Agency designates a VSS or liaison responsible for offering general support and information to Veterans and their families.
Maryland Veterans Trust Fund: This fund offers financial support to Veterans and their surviving spouses dealing with short-term financial hardships. It is designed to help individuals regain self-sufficiency, rather than address ongoing financial difficulties. Common uses for the grant include temporary help with housing expenses like rent, mortgage payments, or utility bills.
Survivor Death Benefit for Maryland Residents Killed in Action: A one-time death benefit of up to $125,000 is available to the estate or beneficiaries of Maryland residents who die in action, or from combat-related injuries sustained while serving in Iraq or Afghanistan.
No-Cost Vital Records for Maryland Veterans and Families: Veterans, active-duty Service members, and their surviving dependents can obtain birth, death, marriage, or divorce records free of charge when required for federal benefits applications. Contact the Circuit Court for marriage/divorce certificates or the Maryland Division of Vital Records at 800-832-3277 or 410-764-3038 for birth and death records.
Toll Waiver for Maryland National Guard Members: Members of the Maryland National Guard are entitled to travel toll-free on state roads, bridges, and ferries when commuting to or from official duty assignments.
Jury Duty Relief for Maryland National Guard: Those actively serving in the Maryland National Guard may be excused from state jury duty if it would conflict with their military responsibilities.
Education Programs
Maryland Education Benefits for National Guard Members, Veterans, and Their Families
State Tuition Waiver (STW) for Maryland National Guard Members
Service members in the Maryland National Guard may be eligible for tuition waivers at Maryland public colleges and universities (excluding University of Maryland Global Campus). Each institution sets its own limits on seat availability and the number of credits offered under the waiver.
Courses held at National Guard facilities offer 25% to 50% tuition waivers regardless of space limitations. STW does not apply to professional development courses but may be used at certain trade schools partnered with the Maryland National Guard.
State Tuition Assistance Reimbursement (STAR)
The STAR program reimburses eligible Maryland National Guard members up to 50% of tuition and qualifying fees at public institutions, select private colleges, and partner trade schools across the state.
STAR covers undergraduate coursework and can be combined with the State Tuition Waiver, Federal Tuition Assistance, and the Montgomery GI Bill. Reimbursement is granted for courses with a grade of “C” or better.
Eligibility Requirements: Must be an actively serving Guard member (E-1 to O-4) in good standing with at least two years of service commitment remaining from the course start date.
Maryland Scholarships for Veterans and Their Families
Edward T. and Mary A. Conroy & Jean B. Cryor Memorial Scholarships
These scholarships offer tuition and education-related expense coverage for eligible Veterans and their dependents at Maryland public colleges (excluding University of Maryland Global Campus and University of Maryland, Baltimore).
The award may equal the full cost of tuition and mandatory fees for undergraduate or graduate studies.
Students may enroll full-time or part-time and use the scholarship for up to:
- 5 years full-time undergraduate
- 8 years part-time undergraduate
- Standard graduate timelines (full- or part-time)
This scholarship is not based on financial need.
Veterans of the Afghanistan and Iraq Conflicts (VAIC) Scholarship
This program supports post-9/11 Veterans and their eligible family members pursuing undergraduate or approved two-year certificate programs at schools within the University System of Maryland (excluding UMGC and UM Baltimore).
The award covers up to 50% of tuition, fees, and room and board.
Annual VAIC Maximums:
- On-campus: up to $8,274
- Living with parents: up to $5,390
- Off-campus: up to $4,820
Total aid (including other state and VA benefits) may not exceed the cost of attendance or $29,600.
Additional Educational Support Programs
High School Diplomas for WWII and Korean War Veterans
Maryland County Boards of Education will award honorary high school diplomas to Veterans of WWII or the Korean War who left school to serve. GED recipients also qualify.
Interstate Compact on Educational Opportunity for Military Children (MIC3)
Maryland participates in MIC3 to ensure smooth school transitions for military children. This compact helps with:
- Speedy enrollment and record transfers
- Fair placement and course continuity
- Graduation timeline protections
- Equal access to extracurriculars
- Streamlined sharing of educational data
- Stronger coordination across school systems and states
Purple Star School Program
Maryland’s Purple Star initiative recognizes schools that go above and beyond to support military-connected students.
To qualify, schools must:
- Designate a trained liaison for military families
- Provide educator awareness training
- Offer dedicated online resources for military families
Housing: Below are the locations designated for Veterans Homes.
Maryland – Charlotte Hall Veterans Home: Located in St. Mary’s County, the Charlotte Hall Veterans Home offers a range of services, including assisted living, skilled nursing care, and memory support within secured units, ensuring comprehensive care for Veterans and their eligible spouses.
The facility is committed to fostering a respectful, safe, and supportive healthcare setting, providing Maryland Veterans with a warm and welcoming place to call home.
Maryland State Veterans Home at Charlotte Hall
Admission Eligibility:
Applicants must be Maryland residents who are either 62 years of age or older, or classified as disabled by the VA or Social Security Administration. Eligibility also includes Veterans who served full-time active duty (excluding training) in the U.S. Armed Forces and were honorably discharged. Additionally, members of reserve components who fulfill Maryland residency requirements, as well as spouses of qualifying Veterans, may also be considered.
Employment and Job Training Support for Veterans in Maryland
Veterans’ Preference in Hiring:
Maryland extends hiring advantages to eligible Veterans for state employment opportunities. When exams are part of the selection process, qualifying applicants may receive additional points:
- +10 Points: Veterans with honorable discharge, spouses of disabled Veterans, and surviving spouses.
- +2 Points: Former prisoners of war.
- +5 Points: Applicants with qualifying disabilities under the Americans with Disabilities Act.
Applicants must be job-qualified and provide service documentation (DD214); disabled Veterans must also include disability verification.
Paid Military Leave for State Employees:
State employees serving in the Reserve or National Guard are eligible for:
- 15 days of paid military leave annually for training or active duty.
- Military Administrative Leave, which pays the difference between their military and state salary when activated.
Disabled Veteran Hiring Preference (State Level):
Certain disabled Veterans may be appointed to state jobs without a competitive process, provided they meet the qualifications for the role.
Federal Hiring Preferences:
Federal law grants hiring priority to eligible Veterans:
- 5-Point Preference: For service during designated periods, campaigns, or over 180 consecutive days under qualifying conditions.
- 10-Point Preferences:
- CP/CPS: For Veterans with service-connected disabilities (10%–30%+).
- XP: For Purple Heart recipients or those with disabilities not meeting CP/CPS levels.
- Derived Preference: For certain spouses, surviving spouses, and mothers of qualifying Veterans.
Additional eligibility may apply depending on the Veteran’s enlistment date and length of active duty. Required service documentation and verification of disability are necessary.
USERRA Protections
The Uniformed Services Employment and Reemployment Rights Act (USERRA) ensures job security for Veterans and reserve component members who leave civilian jobs for military service:
- Reemployment Rights for up to 5 years of military-related absence (with some exceptions).
- Return to Work in a position with equal seniority, pay, and benefits.
- Disability Protections, including accommodation and up to two years for recovery and job reinstatement.
- Health & Pension Continuation, with up to 24 months of health coverage during service (premium may apply).
Veterans can seek assistance through the Department of Labor’s Veterans’ Employment and Training Service (VETS).
Veteran-Specific Workforce Programs in Maryland
Veterans Conservation Corps (VCC):
Offers employment opportunities for Veterans in conservation and public land management. The VCC helps Veterans gain experience and training while working with Maryland Park Service and the Department of Natural Resources.
Professional Licensing Assistance:
Veterans, Service members, and their spouses (including surviving spouses) may receive expedited or temporary licenses when transferring existing professional credentials to Maryland. Licenses are typically processed within 60 days.
Maryland American Job Centers:
These centers assist transitioning Service members, Veterans, and their families with:
- Career counseling
- Job placement
- Training resources
Priority Service is given to eligible Veterans and spouses in all federally funded programs, ensuring faster and earlier access to services. Dedicated staff include:
- Local Veterans Employment Representatives (LVERs)
- Disabled Veterans Outreach Program (DVOP) specialists
Burials and Memorials
Important Information on Burial Preferences and VA Benefits
It’s essential to record your wishes regarding burial in a national cemetery and the use of a VA-provided headstone, and to store this documentation with your personal and medical records.
The National Cemetery Administration (NCA) honors qualified Veterans and their families by offering a dignified final resting place and a permanent memorial recognizing the Veteran’s service to the country.
VA burial benefits include a gravesite in any open VA national cemetery, grave opening and closing services, perpetual care, a government-issued headstone or marker, a burial flag, and a Presidential Memorial Certificate—all provided at no cost to the family. Eligible Veterans may also qualify for a burial allowance. Cremated remains receive the same honors and are treated with equal respect as those buried in a casket.
These benefits also cover eligible spouses and dependents, allowing for burial with the Veteran and ongoing care of the site. The spouse’s or dependent’s name and dates of birth and death are engraved on the Veteran’s headstone at no charge. Notably, spouses and dependents remain eligible for burial even if they pass away before the Veteran and may be laid to rest in a different national cemetery if needed.
National Cemeteries include:
Annapolis: Annapolis National Cemetery
Baltimore: Baltimore National Cemetery
Baltimore: Loudon Park National Cemetery
Scotland: Point Lookout Confederate Cemetery
Maryland VA Benefit Resources
Veterans in Maryland have access to a Regional Benefits Office as well as a VA Medical Center to support their healthcare and benefit needs.
Maryland VA Regional Benefits Office
- Baltimore: Baltimore Regional Office
Maryland VA Medical Centers
- Baltimore: Baltimore VA Medical Center – VA Maryland Health Care System
- Baltimore: Loch Raven VA Medical Center – VA Maryland Health Care System
- Perry Point: Perry Point VA Medical Center – VA Maryland Health Care System
Essential Details Regarding Maryland Veteran Benefits:
If you’re a Veteran applying for VA benefits for the first time, you’ll need to submit a copy of your DD 214 (discharge document). This form verifies your service details—such as discharge status, full name, Social Security number, branch of service, and service dates. Most VA benefits are available to Veterans with an Honorable or General discharge.
It’s crucial to store your discharge documents and medical records securely—preferably in a safe—where you and your loved ones can easily access them. Proper storage helps prevent loss, damage, or tampering.
Eligibility for most VA benefits is determined by your discharge status 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, or Coast Guard, or as a commissioned officer in the Public Health Service, Environmental Services Administration, or NOAA (National Oceanic and Atmospheric Administration).
Veterans with a “Dishonorable” discharge from a general court-martial may be ineligible for VA benefits. However, some incarcerated Veterans and parolees may still qualify for limited VA assistance. For those with multiple discharges under different conditions, VA regional offices can help determine eligibility.
*Information current as of November 2023.
Veteran Benefits in Maryland
Disabled Veterans in Maryland with a VA disability rating of 90% or lower may qualify for extra benefits. Reach out to Vital Veterans Consultants for a complimentary, no-obligation consultation. Our team can assess your claim and help determine if you’re entitled to additional support.
