Pay you earn for service in a combat zone or a hazardous duty location is left out of your Massachusetts taxable income whenever it is also excluded from your federal income. Massachusetts does tax the rest of a resident service member’s military pay.
There is nothing to apply for. Leave your combat zone or hazardous duty pay out of the income you report on your Massachusetts return, the same way you leave it off your federal return.
Your Leave and Earnings Statements or orders showing the combat zone or hazardous duty service dates.