KEY TAKEAWAYS
- Massachusetts does not tax military retired pay, for residents or nonresidents, and VA disability compensation is tax-free under federal law.
- Veterans rated 100%, or paid at 100% by VA, get a $2,500 state annuity every August under the 2024 HERO Act. Surviving spouses now keep it if they remarry.
- Property tax exemptions run from $400 to $1,500 a year by disability, a full exemption for paraplegic veterans and those with 100% service-connected blindness, and towns can now double them.
- Veterans rated 100% or unemployable pay no registration, license or excise tax on their vehicles, and Chapter 115 gives low-income veterans monthly cash and medical help through every city and town.
- Veterans who pass a civil service exam get absolute preference: they are placed above every non-veteran on the list. Post-9/11 veterans can also claim a Welcome Home Bonus of up to $1,000.
- Massachusetts Income Tax for Veterans and Military Retirees
- Massachusetts Property Tax Exemptions for Veterans
- The $2,500 Disabled Veteran Annuity
- Welcome Home Bonus for Post-9/11 Service
- Chapter 115 Financial and Medical Assistance
- Tuition Waivers for Veterans and the National Guard
- Civil Service Preference and Pension Buyback
- Vehicle Tax and Fee Exemptions
- Massachusetts Veterans Homes
- Massachusetts Veterans Memorial Cemeteries
- State Parks
- Benefits for Surviving Spouses and Families
- How to Apply for Massachusetts Veteran Benefits
- Frequently Asked Questions
Massachusetts has one of the deepest state benefit systems in the country, and much of it is paid in cash: an annual annuity for 100% disabled veterans, one-time bonuses for post-9/11 service and means-tested monthly help under Chapter 115. The 2024 HERO Act raised the annuity, widened the vehicle tax exemptions and let towns double veterans’ property tax exemptions. Several details on older guides are wrong, including the size of the 100% property tax exemption and the Welcome Home Bonus amounts, and the new Holyoke veterans home opened on October 29, 2026. This guide covers what Massachusetts offers in 2026, who qualifies and where to apply.
Massachusetts Income Tax for Veterans and Military Retirees
According to the Department of Revenue, U.S. military pensions are excluded from Massachusetts gross income for both residents and nonresidents. That makes Massachusetts one of the better states for career retirees despite its cost of living.
| Income | Massachusetts tax |
|---|---|
| Military retired pay | Not taxed |
| VA disability compensation | Not taxed (federal law) |
| Combat zone pay | Not taxed; officers capped at the enlisted maximum plus imminent danger pay |
| Active-duty pay of a Massachusetts resident | Taxed, even when stationed elsewhere |
| Military pay of a nonresident stationed in Massachusetts | Not taxed |
Domicile is what counts. A service member who stays domiciled in Massachusetts is still a resident and owes tax on active-duty pay wherever they are stationed. A nonresident service member stationed in Massachusetts owes nothing on military pay, and a spouse can elect each year to use the service member’s state of residence. Our military retirement pay calculator estimates your pension, and the Survivor Benefit Plan guide covers the annuity your spouse would receive.
Massachusetts Property Tax Exemptions for Veterans
Massachusetts property tax exemptions for veterans are set by clauses of M.G.L. Chapter 59, Section 5, and applied by your local board of assessors. They are flat dollar reductions in your tax bill, not reductions in assessed value. The state’s summary and the Division of Local Services guide list the amounts:
| Clause | Who qualifies | Annual exemption |
|---|---|---|
| 22 | Service-connected disability of 10% or more, Purple Heart recipients, Gold Star parents | $400 |
| 22A | Loss or loss of use of one hand, foot or eye; Medal of Honor, Distinguished Service Cross, Navy Cross or Air Force Cross; former POWs | $750 |
| 22B | Loss or loss of use of both hands, both feet or both eyes | $1,250 |
| 22C | Total disability with VA specially adapted housing | $1,500 |
| 22E | 100% service-connected disability | $1,000 |
| Paraplegic / blind | Paraplegic veterans and veterans with 100% service-connected blindness | Full exemption |
| 22D | Surviving spouses who have not remarried of service members who died from service-connected causes or are missing and presumed dead | Full exemption |
Spouses and surviving spouses of qualifying veterans can generally claim the same clause. To qualify you must own and occupy the home as your domicile on July 1, and either have lived in Massachusetts for six months before entering service or meet the state’s minimum residency period before filing. Applications are due by April 1, or three months after tax bills are mailed if that is later, and assessors cannot accept late filings.
HERO Act local options
Under the 2024 HERO Act, a city or town can vote to double these exemptions (Clause 22J) or tie them to inflation (Clause 22I). A 100% disabled veteran in a town that adopts 22J would get $2,000 instead of $1,000. These options are not reimbursed by the state, so adoption varies; ask your assessor.
The 100% exemption is $1,000 a year, not a full exemption; only paraplegic veterans and those with 100% service-connected blindness get the full exemption. That makes the annuity and vehicle exemptions below worth more to most 100% veterans than the property tax break. Our 100% VA disability guide explains the rating.
The $2,500 Disabled Veteran Annuity
The veteran annuity is a state payment made once a year. The HERO Act raised it from $2,000 to $2,500, paid each August starting in 2025.
- Veterans: rated 100% service-connected or paid at the 100% rate by VA, with a discharge other than dishonorable, and living in Massachusetts.
- Surviving spouses: eligible surviving spouses, who since July 1, 2025 keep the annuity even if they remarry.
- Parents: EOVS has a separate parent application for eligible parents of deceased service members.
New applications and changes must be received and approved by the Executive Office of Veterans Services by June 30 to be paid in August. You must stay a Massachusetts resident to keep receiving it. Because the annuity follows the 100% rate, a rating increase or a TDIU award is worth $2,500 a year in Massachusetts on top of the federal pay.
Welcome Home Bonus for Post-9/11 Service
The State Treasury pays Welcome Home Bonuses for service on or after September 11, 2001. You must have been domiciled in Massachusetts for six months before entering service or, for Guard and Reserve, before activation.
| Service | Bonus |
|---|---|
| First 6 months of continuous active service outside Iraq, Afghanistan or other imminent danger areas | $500 |
| First service in Iraq, Afghanistan or another imminent danger location | $1,000 |
| Died while on active service | $1,000 |
| Each subsequent deployment to an imminent danger location | $500 |
| Subsequent 6 months of continuous service in direct support of a GWOT operation | $250 |
Apply online through the Veterans Bonus portal or by mail with your DD-214 long form. Checks arrive in about four to six weeks. Out-of-state students who attended college in Massachusetts do not count as domiciled.
Chapter 115 Financial and Medical Assistance
Chapter 115 is Massachusetts’s own needs-based aid program for veterans and their dependents, run by the Veterans’ Service Officer in every city and town and largely reimbursed by the state. It can pay monthly cash for food, housing, clothing and fuel, reimburse medical costs such as premiums, co-pays, dental care and prescriptions, and help in an emergency.
- Who qualifies: veterans with a discharge other than dishonorable and their eligible dependents and survivors who live in Massachusetts and meet income and asset limits by household size.
- HERO Act changes: the law wrote dental and medical assistance into the statute and aligned the Chapter 115 definition of veteran with VA’s.
Start with your local Veterans’ Service Officer. To start VA care alongside Chapter 115 medical help, see our VA health care enrollment guide.
Tuition Waivers for Veterans and the National Guard
The Department of Higher Education lists these state programs:
| Program | Who qualifies | What it covers |
|---|---|---|
| Categorical Tuition Waiver | Veterans and active-duty members who are permanent legal residents of Massachusetts | Tuition at state universities, state colleges and community colleges, not fees |
| National Guard Tuition and Fee Waiver | Active Massachusetts National Guard members in good academic standing | 100% of tuition and fees at state schools, up to 130 semester hours |
| Federal Tuition Assistance (Guard) | Massachusetts National Guard members | Up to $4,500 a year at accredited schools in or out of state |
Submit proof of service to your school’s veterans certifying official to use the tuition waiver, and request a Certificate of Eligibility from the Guard education office every 30 credits for the Guard waiver. The tuition waiver stacks well with the federal Post-9/11 GI Bill, and GI Bill transferability covers passing that benefit to a spouse or child.
Civil Service Preference and Pension Buyback
Absolute preference in civil service
Massachusetts gives veterans absolute preference on open competitive civil service exams: a veteran who passes is placed ahead of non-veterans on the eligible list, whatever their scores. Under G.L. c.31, §26 the order is disabled veterans, then veterans, then certain spouses or single parents of veterans killed in action or who died of a wartime service-connected disability. Residency preference can override the order on police and firefighter lists.
- Promotional exams: veterans get two points added to a passing score.
- Labor service jobs: no exam; veterans go to the top of the list for state agencies and the City of Boston.
Military service buyback for public employees
Public employees can buy back active-duty service toward their Massachusetts pension. The HERO Act extended the window to enroll from 180 days to ten years. For federal jobs, see our guide to finding federal jobs for veterans.
Vehicle Tax and Fee Exemptions
The HERO Act extended the RMV fee and tax exemptions to every veteran VA rates 100% or finds unemployable because of a service-connected disability:
| Exemption | What it covers | Who qualifies |
|---|---|---|
| Registration fees | All vehicles the veteran owns; special plate, title and reinstatement fees still apply | 100% or unemployable |
| Driver’s license fees | Transaction fees for all license classes | 100% or unemployable |
| Motor vehicle excise tax | One passenger car or pickup for personal use | 100% or unemployable |
| Sales tax on a vehicle | One passenger car or pickup registered with DV plates | DV plate holders, and Purple Heart recipients rated 60% or more |
Disabled Veteran plates require a rating of at least 60% from conditions that affect walking and eligibility for permanent disabled parking. Excise eligibility is now based on the VA determination rather than an RMV medical board review.
Massachusetts Veterans Homes
Massachusetts runs two state veterans homes:
- Chelsea Veterans Home, which opened a new long-term care building in 2023 and also offers domiciliary housing.
- Veterans Home at Holyoke, whose new campus opened on October 29, 2026. It replaces the building where dozens of veterans died in the 2020 COVID-19 outbreak and has 234 long-term care beds, almost all in single rooms, with a 30-bed memory care floor and space for a 40-person adult day health program.
Contact EOVS or the homes directly for admission rules and waitlists. Veterans who need long-term care sooner can ask VA about community nursing home placement.
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Massachusetts Veterans Memorial Cemeteries
Massachusetts operates two Veterans Memorial Cemeteries, in Agawam (413-821-9500) and Winchendon (978-297-9501). Burial is free for veterans who left active service under honorable conditions, Guard and Reserve members with 20 years who receive or will receive retired pay, and service members who die on active duty.
| Interment | Cost |
|---|---|
| Veteran | No charge |
| Spouse or dependent, casket burial | $300 |
| Spouse or dependent, cremation | $150 |
You can pre-register to establish eligibility in advance. The federal Massachusetts National Cemetery in Bourne, on Cape Cod, is also available. See our VA burial allowance guide for what VA pays toward other costs.
State Parks
Massachusetts waives daily parking fees at state parks for vehicles with a Disabled Veteran or Purple Heart plate, so no annual parking pass is needed. Camping fees still apply. For national parks, every veteran gets a free lifetime pass; see our national park pass guide.
Benefits for Surviving Spouses and Families
- Annuity: eligible surviving spouses receive the $2,500 annuity and, since July 2025, keep it after remarrying.
- Property tax: surviving spouses who have not remarried of service members who died from service-connected causes get a full exemption under Clause 22D, and spouses of veterans in the other clauses can generally claim the same exemption.
- Welcome Home Bonus: $1,000 is paid for a service member who died on active service.
- Civil service: certain spouses and single parents of veterans killed in action rank right behind veterans.
- Chapter 115: dependents and survivors can qualify for the same needs-based help as veterans.
Federal survivor benefits usually matter more. See our guides to VA benefits for a veteran’s widow, DIC and CHAMPVA.
How to Apply for Massachusetts Veteran Benefits
- Gather documents: your DD-214 long form and a VA rating letter. Massachusetts programs lean on the long form, which shows character of service.
- Visit your local Veterans’ Service Officer. Every city and town has one, and they handle Chapter 115, point you to property tax exemptions and help with VA claims at no cost.
- File for property tax exemptions with your assessor by April 1, or three months after bills are mailed.
- Apply for the annuity through EOVS by June 30 if you are rated 100%.
- Claim vehicle exemptions at the RMV and your town’s excise office once you have your 100% or unemployability letter.
The Executive Office of Veterans Services is at 617-210-5480. Buying a home? Our VA loan guide covers the $0-down option. Comparing states? Our guides to New Hampshire, Rhode Island and Connecticut cover the neighboring states.
RELATED READING
New Hampshire Veteran Benefits →
No income tax on wages, property tax credits and state programs just to the north.
VA Veterans Benefits: The Complete Guide →
Health care, compensation, education, home loans and burial, every major VA program in one place.
Property tax breaks, income tax exemptions and state programs in all 50 states.
Frequently Asked Questions
No. The Department of Revenue excludes U.S. military pensions from Massachusetts gross income for both residents and nonresidents, with no income limit or cap. Active-duty pay is different: it is taxed for service members who remain domiciled in Massachusetts, even when stationed elsewhere.
$2,500 a year, paid once each August, after the HERO Act raised it from $2,000. You must be rated 100% service-connected or paid at the 100% rate by VA, have a discharge other than dishonorable and live in Massachusetts. New applications must be approved by EOVS by June 30 to be paid that August.
Usually yes, but less. The Clause 22E exemption for a 100% service-connected disability is $1,000 a year, or $2,000 in a town that has adopted the HERO Act doubling option. Only paraplegic veterans and veterans with 100% service-connected blindness get a full exemption. File with your local assessor by April 1 or three months after bills are mailed.
Veterans rated 100% or found unemployable by VA are exempt from the motor vehicle excise tax on one car or pickup for personal use, and from registration and driver’s license fees. Sales tax on one vehicle is waived for veterans with Disabled Veteran plates, which require a rating of at least 60% from conditions that affect walking.
$1,000 for a first deployment to Iraq, Afghanistan or another imminent danger area, or $500 for a first six months of active service elsewhere. Later deployments to imminent danger areas add $500, and later qualifying six-month periods add $250. You must have lived in Massachusetts for six months before entering service or activation.
On open competitive civil service exams, any veteran who passes is placed ahead of all non-veterans on the eligible list, with disabled veterans first. It does not guarantee a job, and residency preference can change the order on police and firefighter lists. On promotional exams, veterans get two points added to a passing score.
This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the Massachusetts Executive Office of Veterans Services, the Department of Revenue, the State Treasury, the Department of Defense, VA, or any government agency. Amounts and program rules change; confirm current terms with the Executive Office of Veterans Services or your local Veterans’ Service Officer.