The Short Answer
Resident active-duty pay earned while stationed outside Maine is not taxed; pay earned in-state is taxed at rates up to 7.15%. Your base pay is set by the federal pay table — identical to every other state for your rank and years of service. What actually changes in Maine is your BAH (averaging $1,400/mo without dependents and $1,700/mo with dependents) and how Maine treats the taxable portion of your pay.
State tax status: ~ PARTIAL EXEMPT
2026 Worked Example — E-5, 6 Years, With Dependents in Maine
Here is how the math actually lands for a mid-career enlisted member stationed in Maine, built the way I read my own LES. Base pay and BAS are federal; the Maine BAH figure is the state average.
| Monthly line item | Amount | Taxable? |
|---|---|---|
| Base pay (E-5, over 6 yrs) | $3,874 | Yes (federal + state) |
| BAH with dependents (Maine avg) | $1,700 | No — tax-free |
| BAS (enlisted) | $476.95 | No — tax-free |
| Gross monthly entitlements | $6,050.95 | — |
| Taxable income (base pay only) | $3,874 | — |
| Est. Maine state income tax | varies — see notes | — |
Only the $3,874 of base pay is taxable — the $2,176.95 of BAH + BAS is completely tax-free. Run your exact rank, ZIP, and dependency status in the Military Pay Calculator for a precise estimate.
How Maine Taxes Each Type of Military Pay
Active-Duty Base Pay
Resident active-duty pay earned while stationed outside Maine is not taxed; pay earned in-state is taxed at rates up to 7.15%.
Guard & Reserve Drill Pay
Maine Guard and Reserve drill pay is generally taxable; verify any active-duty-order treatment with Maine Revenue Services.
Military Retirement Pay
Military retirement pay is fully exempt from Maine income tax.
VA Disability Compensation
VA disability compensation is exempt federally and is not taxed by Maine.
SCRA & Residency in Maine
A nonresident servicemember stationed in Maine is not taxed by Maine on military pay under SCRA.
This is the single most misunderstood rule in military pay. Your home of record / state of legal residence — not your duty station — generally determines who can tax your military pay. Changing it is a deliberate act, not something that happens automatically when you PCS.
Major Military Installations in Maine
- Naval Air Station Brunswick (former; now Brunswick Landing)
- Bangor Air National Guard Base
- Portsmouth Naval Shipyard (Kittery)
BAH is set by the Military Housing Area covering your duty ZIP. Verify your exact rate at the official DoD BAH lookup.
Official Sources
FAQ — Military Pay in Maine
Does Maine tax my military base pay?
Resident active-duty pay earned while stationed outside Maine is not taxed; pay earned in-state is taxed at rates up to 7.15%.
Is my BAH taxed in Maine?
No. BAH is federally tax-free and is never counted as income for Maine state income tax, regardless of how Maine treats base pay.
Does Maine tax military retirement pay?
Military retirement pay is fully exempt from Maine income tax.
I'm stationed in Maine but my home of record is elsewhere — who taxes me?
A nonresident servicemember stationed in Maine is not taxed by Maine on military pay under SCRA.