- As of 2026, 37 states do not tax military retirement pay at all — either because they have no state income tax or because they’ve enacted a full military retirement exemption.
- Only California and Washington D.C. fully tax military retirement income with no meaningful exemption.
- Recent additions include South Carolina (full exemption effective 2025) and New Hampshire (joined the no-income-tax states in 2025).
- Georgia expanded its exemption to $65,000 for retirees of any age beginning with the 2026 tax year — a major improvement from prior age-based limits.
- Vermont added a new full exemption for retirees with AGI of $125,000 or less, effective tax year 2025.
- A retiree with a typical $40,000–$60,000 annual pension could save $1,500–$3,500/year by retiring in a tax-exempt state vs. a fully taxable one.
Table of Contents
- How State Taxation of Military Retirement Works
- State-by-State Tax Status at a Glance (Chart)
- States With No Income Tax (9 States)
- States With Full Military Retirement Exemption (28 States)
- States With Partial Exemptions (13 States)
- States That Tax Military Retirement Pay (2)
- Recent Changes: What’s New in 2025–2026
- What the Exemption Is Worth: Dollar Impact
- Beyond Income Tax: Other Factors When Choosing a Retirement State
- Frequently Asked Questions
Where you retire after military service can have a significant impact on how far your pension stretches. State income tax treatment of military retirement pay varies dramatically — from states that take nothing, to states that offer generous exemptions, to a small handful that tax it like any other income. This guide covers the complete 2026 picture: every state’s current policy, the most important recent changes, and what the difference means in real dollars for your household budget.
Military retirement pay is always subject to federal income tax (unless you receive VA disability compensation in lieu of retirement pay). What varies is the state layer on top of that. This article focuses exclusively on state-level treatment. For a broader look at military retirement finances, see our Military Retirement Planning Guide and Military Pension Calculator.
USMilitary.org is an independent educational resource not affiliated with any government agency. State tax laws change. Always verify your state’s current rules with your state’s department of revenue or a qualified tax professional. For official guidance on DFAS withholding, contact the Defense Finance and Accounting Service (DFAS).
How State Taxation of Military Retirement Works
Military retirement pay — the monthly pension earned after 20 or more years of service — is treated as ordinary income for federal tax purposes. States handle it very differently. There are essentially four categories:
- No income tax states — these states don’t tax any income, so military retirement pay is automatically exempt.
- Full military exemption states — these states have income taxes but have passed specific legislation exempting military retirement pay entirely.
- Partial exemption states — these states offer exemptions up to a certain dollar amount, or based on age, years of service, or income level.
- Fully taxable states — military retirement pay is treated like any other pension income and taxed at the state’s standard rate.
VA disability compensation is always 100% tax-free at the federal and state level, regardless of where you live. This is distinct from military retirement pay — the two are different programs with different tax treatment. See our VA Disability Compensation Calculator for more on disability pay.
State-by-State Tax Status at a Glance
Military Retirement Pay: State Tax Treatment (2026)
Based on 2025 tax year rules effective for 2026 filing
No income tax (9)
Full exemption (28)
Partial exemption (13)
Fully taxable (2)
States With No Income Tax (9 States)
These nine states levy no personal income tax at all, making military retirement pay automatically exempt. They’re consistently popular retirement destinations for veterans for this reason, though other taxes — property, sales — vary considerably.
| State | Notes for Military Retirees |
|---|---|
| Alaska | No state income tax. Also has no statewide sales tax. High cost of living in most areas. |
| Florida | No state income tax. One of the largest concentrations of military retirees in the country. No estate or inheritance tax. |
| Nevada | No state income tax. Higher sales tax (6.85% base rate). No inheritance tax. |
| New Hampshire NEW 2025 | Eliminated its tax on interest and dividend income in 2025, becoming a true no-income-tax state. Military retirement pay was already not taxed; this change removed the last vestige of NH income taxation. |
| South Dakota | No state income tax. Low property taxes relative to national average. No inheritance tax. |
| Tennessee | No state income tax (eliminated its Hall Tax on investment income in 2021). No taxes on wages or retirement income. |
| Texas | No state income tax. High property taxes in many areas — factor this into total cost of living calculations. Large veteran population and strong VA/DoD presence. |
| Washington | No state income tax on wages or retirement income. Has a capital gains tax (7%) on certain investment gains over $250,000 — generally not a concern for pension-only retirees. |
| Wyoming | No state income tax. Low cost of living and low property taxes make it attractive for budget-conscious retirees. |
States With Full Military Retirement Exemption (28 States)
These states have income taxes but have passed specific legislation fully exempting military retirement pay. Some exemptions are unconditional; others have eligibility conditions worth noting.
| State | Exemption Details |
|---|---|
| Alabama | Fully exempt. One of the most veteran-friendly states in the South. |
| Arizona | Fully exempt for all military retirees regardless of age or income. Earlier partial exemption has been expanded to full status. |
| Arkansas | Fully exempt. |
| Connecticut | Fully exempt for qualifying nonresidents on active duty. Military retirement pay is not taxable for CT residents who meet specified conditions. |
| Hawaii | Fully exempt. Note that Hawaii has a high cost of living which may offset tax savings. |
| Illinois | Fully exempt. Illinois taxes most retirement income, but military pensions are specifically excluded by statute. |
| Indiana | Fully exempt. Indiana expanded its exemption to include Space Force retirees as well as retired U.S. Public Health Service (USPHS) and NOAA officers. |
| Iowa | Fully exempt. |
| Kansas | Fully exempt. |
| Louisiana | Fully exempt. |
| Maine | Fully exempt. Maine expanded its exemption to cover Space Force members and USPHS/NOAA Corps officers, effective 2026. |
| Massachusetts | Fully exempt. |
| Michigan | Fully exempt by statute for all military retirees. |
| Minnesota | Fully exempt. Minnesota’s exemption phased in over several years; it is now fully in effect. |
| Mississippi | Fully exempt. Mississippi does not tax any retirement income from qualified plans, and military pensions are included. |
| Missouri | Fully exempt. |
| Nebraska | Fully exempt. |
| New Jersey | Fully exempt. |
| New York | Fully exempt. New York taxes most income aggressively, but military retirement pay is carved out entirely. |
| North Carolina | Fully exempt under the “Bailey Exclusion” for retirees who had five or more years of creditable service as of August 12, 1989. Retirees who don’t meet the Bailey criteria may be subject to NC income tax on their pension — verify your eligibility. |
| North Dakota | Fully exempt. |
| Ohio | Fully exempt. |
| Pennsylvania | Fully exempt. Pennsylvania does not tax most retirement income, including military pensions. |
| South Carolina NEW 2025 | Fully exempt effective tax year 2025. Previously SC offered only a partial exemption. This is one of the most significant recent changes for military retirees — at a 6.5% state tax rate, a $50,000 pension saves approximately $3,250 annually. |
| Vermont NEW 2025 | Fully exempt for residents with AGI of $125,000 or less; partially exempt for AGI between $125,000 and $175,000. Act 71, signed in 2025, also created a new Vermont Veteran Tax Credit for eligible veterans. |
| West Virginia | Fully exempt. |
| Wisconsin | Fully exempt. |
| Oklahoma | Exempt up to 75% or $10,000, whichever is greater — effectively a full exemption for most military retirees with pensions under the typical range. |
States With Partial Exemptions (13 States)
These states recognize military retirement pay deserves favorable treatment but cap the exemption or apply age/income conditions. The rules can be complex — always verify with your state’s revenue department.
| State | Exemption Details |
|---|---|
| California | Up to $20,000 excluded for single/head-of-household filers with AGI under $125,000, or joint filers under $250,000. Military retirement pay is otherwise fully taxable — California remains the most prominent state that taxes military retirement income broadly. The Governor’s Budget has proposed expanding this exemption, but full exemption legislation has not passed as of 2026. |
| Colorado | Up to $24,000 of federally taxable retirement income (including military pay) exempt for retirees age 65+; up to $20,000 for ages 55–64; up to $15,000 for retirees under 55. |
| Delaware | Up to $12,500 of pension income exempt for taxpayers of any age (Delaware recently removed prior age requirements). Legislation to increase the exemption to $25,000 is under discussion. |
| Georgia NEW 2026 | Up to $65,000 exempt for retirees of any age, effective tax year 2026. This is a major expansion — previously, the $65,000 cap was only available to retirees 65 and older. Retirees under 62 were previously limited to $17,500. At Georgia’s flat 5.49% rate, this change is worth up to $3,575/year in additional savings for younger retirees. |
| Idaho | Fully exempt for disabled retirees and retirees age 62 and older. Younger non-disabled retirees are subject to Idaho income tax on their pension. |
| Kentucky | Pre-1998 retirees: fully exempt. Post-1997 retirees: up to $31,110 exempt. If you retired before 1998, your full pension is tax-free in Kentucky. |
| Maryland | First $12,500 exempt; increases to $20,000 at age 55. Not as generous as neighboring states like Pennsylvania (full exemption), which is worth noting if you’re comparing Mid-Atlantic retirement options. |
| Montana | Starting with tax year 2024, Montana residents who work in Montana may deduct up to 50% of military retirement or survivor pay for up to the first five years of eligibility. Retirees 65 and older also receive an additional $5,500 subtraction from federal taxable income. |
| New Mexico | Up to $30,000 exempt for tax years 2024–2026. All income is exempt for taxpayers who are 100 years or older. |
| Oregon | Military retirement pay for service before October 1, 1991, is exempt. Service after that date is taxable. If you had service that spans both periods, a portion may be exempt. |
| Utah | Offers a non-refundable tax credit equal to 4.5% (Utah’s flat income tax rate) of retired pay — effectively offsetting the Utah income tax on military retirement pay dollar-for-dollar. While technically taxable, the credit makes it functionally equivalent to an exemption for most retirees. |
| Virginia | $40,000 exemption for the 2025 tax year and beyond. Virginia has been gradually increasing this amount over recent years. At Virginia’s top income tax rate of 5.75%, a $40,000 exemption saves up to $2,300 annually. |
| Vermont | See “Full Exemption” above — Vermont now offers a full exemption for retirees with AGI of $125,000 or less, with a partial exemption (phasing out) between $125,000 and $175,000 AGI. |
States That Fully Tax Military Retirement Pay (2)
As of 2026, only two jurisdictions fully tax military retirement pay with no meaningful military-specific exemption:
- California — The only state that broadly taxes military retirement income. California offers a partial exclusion (up to $20,000) for eligible retirees under income thresholds, but for most veterans with a decent pension, a significant portion remains taxable. At California’s top marginal rates (up to 13.3%), this is by far the most expensive state for military retirees in terms of income tax.
- Washington, D.C. — The District of Columbia taxes military retirement pay as ordinary income, with no military-specific exemption. DC has a progressive income tax ranging from 4% to 10.75%.
Recent Changes: What’s New in 2025–2026
The trend over the past several years has strongly favored expanding military retirement tax exemptions. States are increasingly recognizing that attracting and retaining veteran residents — who tend to be working-age, skilled, and economically active — is good policy. Here are the most significant changes since 2022:
- South Carolina (2025) — Full exemption enacted. Previously SC had a partial exemption. The new full exemption means a retiree with a $50,000 pension saves approximately $3,250/year compared to before. This is one of the largest single-state changes in recent years.
- Vermont (2025) — New AGI-based full exemption. Vermont enacted Act 71 in 2025, creating a full exemption for military retirement pay for filers with AGI of $125,000 or less. A new Vermont Veteran Tax Credit was also established.
- Georgia (2026 tax year) — Age cap removed from $65,000 exemption. Georgia’s $65,000 exemption is now available to retirees of any age, not just those 65 and older. Younger retirees in their 40s and early 50s — common in military retirement — benefit most from this change.
- New Hampshire (2025) — Joined no-income-tax club. NH eliminated its Hall Tax on interest and dividends, completing its transition to a state with no income tax on any income.
- Indiana and Maine (2026) — Space Force/USPHS/NOAA expansion. Both states expanded their full exemptions to explicitly cover Space Force retirees and retired U.S. Public Health Service and NOAA officers.
- Delaware — Age requirement removed. Delaware eliminated the age requirement for its pension exclusion, allowing retirees of any age to exempt up to $12,500. Further increases are being discussed legislatively.
- Virginia — Exemption increased to $40,000. Virginia’s military retirement exemption reached $40,000 for the 2025 tax year, continuing its phased expansion.
What the Exemption Is Worth: Dollar Impact
The financial impact of state tax treatment depends on your pension amount and your state’s income tax rate. Here’s a practical illustration using a hypothetical retired E-8 or O-4 with a $48,000 annual military pension:
- In a no-income-tax state (Texas, Florida, etc.): $0 state tax on retirement pay. Full $48,000 retained.
- In a full-exemption state (Alabama, Illinois, Michigan, etc.): $0 state tax on retirement pay. Full $48,000 retained.
- In Virginia ($40,000 exemption, 5.75% rate): $8,000 taxable × 5.75% = $460/year in state tax.
- In California (partial exemption, 9.3% marginal rate): Approximately $26,000 taxable (after partial exclusion) × 9.3% = roughly $2,400+/year in state tax.
- In Washington D.C. (fully taxable, ~8% rate): Full $48,000 taxable at an estimated blended 8% = approximately $3,840/year in state tax.
Over a 20-year retirement, the difference between living in a fully tax-exempt state versus California or D.C. could exceed $75,000 in cumulative tax paid — real money that could fund home equity, travel, or your family’s financial security. The choice of retirement state matters.
For a complete view of how your pension amount is calculated in the first place, use our Military Pension Calculator. If you’re weighing the Blended Retirement System against the legacy High-36 system, our Military Retirement Planning Guide covers that decision in depth. And if you’re thinking about using a VA loan to buy a home in your retirement state, our VA Loan guide explains how your pension income can support a mortgage application.
Beyond Income Tax: Other Factors When Choosing a Retirement State
Income tax on your pension is one piece of the financial picture, but not the only one. When evaluating retirement states, military retirees should also weigh:
- Property taxes. Texas has no income tax but high property taxes in many cities. Wyoming and Alabama offer lower property taxes. Some states offer property tax exemptions specifically for disabled veterans — see our Veteran Benefits by State guides for specifics.
- Sales tax. States like Oregon and Montana have no sales tax, which can add meaningful savings for retirees on fixed incomes. Tennessee has no income tax but a combined sales tax rate often exceeding 9%.
- VA healthcare access. Proximity to VA medical centers, military commissaries, and base exchanges (BX/PX) is a practical quality-of-life factor. States with large veteran populations — Texas, Florida, Virginia, North Carolina — tend to have stronger VA infrastructure.
- Cost of living. A state with no income tax but high housing, utility, and healthcare costs may not be a net win compared to a partial-exemption state with lower overall living expenses.
- Second income and post-military career. If you plan to work after retiring from the military, your state’s treatment of earned income matters alongside your pension. States with flat, low income taxes may be more favorable for retirees who also earn civilian wages.
- Survivor Benefit Plan (SBP). If you participate in the Survivor Benefit Plan, consider how your state treats SBP payments for your surviving spouse. Most states that exempt military retirement pay also exempt SBP annuity payments, but this isn’t universal — verify for your specific state.
Frequently Asked Questions
As of 2026, 37 states do not tax military retirement pay at all — 9 states with no income tax, plus 28 states with full military retirement exemptions. Additionally, around 13 states offer partial exemptions. Only California and Washington D.C. fully tax military retirement income with no meaningful military-specific exclusion.
Yes. Military retirement pay is subject to federal income tax at your applicable rate, the same as other ordinary income. VA disability compensation is always federally tax-free, but that is a separate program from military retirement pay. You can request federal income tax withholding from your retirement pay through DFAS using IRS Form W-4P.
The nine no-income-tax states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) and the states with unconditional full exemptions (Alabama, Illinois, Michigan, Mississippi, etc.) offer the maximum tax benefit. Florida, Texas, and South Carolina are frequently cited as top overall picks because they combine no income tax or full pension exemption with strong veteran infrastructure, reasonable cost of living in many areas, and large military communities. The “best” state ultimately depends on your full financial picture, including property taxes, cost of living, and whether you’ll work in retirement.
In most states that exempt military retirement pay, Survivor Benefit Plan payments to surviving spouses receive the same favorable treatment. However, this isn’t guaranteed — some states have specific rules. Always verify your state’s SBP treatment with your state’s department of revenue or a tax professional.
Generally, the state where you are a legal resident at the time you receive the income is the state that can tax it. Under the Servicemembers Civil Relief Act (SCRA), active-duty members maintain their legal state of residence. Once you retire and establish a new legal residence, that state’s rules apply going forward. Most states allow you to claim exemption simply by filing as a resident and claiming the applicable pension deduction on your state return.
This article is provided by USMilitary.org, an independent educational resource not affiliated with any government agency. State tax laws change frequently — verify current rules with your state’s department of revenue or a qualified tax professional before making financial decisions.
Virginia next please
I agree, Virginia get onboard soon
I bet they wont, that state taxes absolutely everything. Will they make the survivor benefit tax-free too??
All veterans should be tax free of all taxes in all states. We have already paid our “FAIR” share…as Biden says
Amen! You said it. Heck it should be a Nationwide Law. We served the country not the state!
Right on!!! All state veterans NEED STATE TAX FREEDOM NOW!!!!!!
We ALL DESERVE IT!!!
Is it just state tax free or you still pay federal taxes on it?
I totally agree with that statement. Always a battle for freedom, even at home. Free from tax would be a great “Thank You” from our states.
Totally agree, brother!
I agree all military retirement should be tax free
Yeah everyone but Georgia
Georgia doesn’t tax military or government retirements. Only 5.9 of federal on the retirements
Georgia does tax military retirement. In a bill this year that would exempt up to $35,000 a year in military retirement income from state income tax was passed in February 2022 by the state House.
Representatives voted 161-0 for House Bill 1064, under which the state is projected to forgo an estimated $55 million to $60 million in taxes annually. The measure moves to the Senate for more debate.
Alaska next please
Yes Alaska please
Cisco said what happen to Nevada, Let’s get on board. We have a lot of Vets who are retired also.
Agreed, but all states SHOULD look at this blue print and offer this or one hell of a tax break.
Georgia are you listening!!!
Georgia with the military basis that are located in this state you would think that if They really mean what they say—-”THANKS FOR YOUR SERVICE.” . THE TAXES WOULD BE A START.
Amen to that
California next?
Don’t hold your breath .California is so fare Left I think It has Left the United States !
how about Tenn. also
Tenn should be on the list. Be proud to support your brave Men and Women that have supported Tennessee! They should also get tax free homes and cars. A lot of your Veterans don’t make enough money to pay these taxes and can’t work because of disabilities received in the Military.
Absolutely, I hope the Tennessee State Legislature will follow suit and make all Veteran retirement benefits tax free (i.e. retirement income, homes and autos).
Agree – Sooner the Better!
It would benefit the many retired vets in Florida Gov Desantis love Bob (R)
Florida has no state income tax.
The “Live Free or Die” state of New Hampshire has no state income tax.
No state or city tax in Fl.
Florida doesn.t have state income taxry
This law should be passed in all states. Especially veterans who served 20+ years!
Heck yeah!!! We that served the 20+ years no matter what state we’re in should get that retirement tax free. We’ll see.
Heck yeah!!! We that served the 20+ years no matter what state we’re in should get that retirement tax free. We’ll see.
They forgot to include Nevada
yes virginia get onboard
Yeah what’s up with South Carolina for veterans retirement why the holdup
Yes I’m in that boat. South Carolina needs to get onboard!
Heck I’m Air Guard with mixed service. Sitting here with 29 total yrs no all active but man at 47 I’d love to finally cash in. On a Mitary retirement and not wait till in 60 this is becoming rough, doing this daily for the last 24yrs has its toll on you. So I’m hoping they change the current rule..
Federal Tax should be tax free also.
Is there a petition we can sign to get the rest of the states on board?
Military retirement pay should be tax-free for State and Feds!
I agree 💯 %
Retired railroad is not taxed by the federal government I’m not sure why military retirement is.
When might California get on board?
You kidding how they finance Illegals
Wait for the outcome of the Midterms and Governor race. Change is good! Vote!!
Come on kentucky, don’t you care bout us veterans
With Ky having billions laid back, they definitely have the resources to help us veterans.
What about Texas
I live in Texas as well and totally agree!
How do we or who do we get in contact with to ensure our State is added to this list?
Texas does not have State Income Tax.
This is for Federal Tax.
I wish but you are quite incorrect this is absoluteiy for state income taxnot fedral. Federal does offer a taxbreak.
Papaj
There is no state income tax in Texas.
Ok, so what and what do that have to do with not taxing our military retirement
Thus isn’t about State Tax…it’s referring to Federal Tax. SC is pushing for it now & hopefully, it gets approved!
Yea, i was wondering why the writer missed that?
Texas has no income tax., so it is already not taxed by the state.
You morons asking about Texas, Texas has no state income tax. If you are stupid enough to believe this is about federal income tax, when did a state, any state EVER decide what is exempt from federal tax?
What about Tennessee ? For vets on 100% disabled.
If you are 100% disabled it’s tax free (state and federal)
In Texas you have to 100% disabled VA rated and retirement pay to request tax exempt.
Who do you contact to get this done? I’m 100% VA disabled and retired after
I live in Texas, and I pay no state taxes on my military retirement pay.
but you pay federal tax
Texas has no state income tax, so your military retirement check is not taxed by Texas. This article is talking about STATE income tax, not FEDERAL income tax. That is why the states that do not have state income tax are not mentioned. –Texas, Tennessee, Nevada, etc.
Texas has no Income Tax for anyone!
Texas doesn’t have a state income tax.
Texas doesn’t have a state income tax, so it’s amoot point. I think that the author should have included TX on the list, but there is no tax bring withheld by Texas.
When is California going to be on the list?
I will sign
Never !
Cali is Tax Vacuum and not a Veteran friendly state! Let’s be honest…
They are especially NOT military friendly. When I lived there and was an Oregon resident they didn’t tax my pay, What they did was use it to increase the taxable amount for anything I and my wife did to earn extra money…
I figured my taxes without the income at all and then by the law. Guess what, it was a large increase in my taxes.
C’mon Bernie, why isn’t Vermont on this list. I can tell you why. Vermont has no love for those who fought to preserve their safety.
What about New Mexico, I have here since 2014 & they are mililary retirement.
Far left state.
What about GA?
When will Georgia be tax free. Why do some states get tax free and others don’t? The states that is not getting tax free is the government saying those vets are not worthy to have the same? Those vets are just as important as the rest. Just isn’t fair!!!!!
I agree ga is not vet friendly and should get on board ga has a high homeless population and a nice percentage are veterans
Ditto ?
Jessienmd@gmail.com
What’s the status on Alaska…
None nor would this be any change for you.
no tax
My husband has been retired but not disabled, no tax relief, and property taxes are climbing.
Tennessee doesn’t have a state tax for anyone.
What about Puerto Rico Fellix
P R is not a state yet. However, the Dems are trying to make PR & District of Columbia states for the senate. Let’s hope that doesn’t happen.
why not make them states,they received all benefits an rights just like the other 50 states.
Making PR and DC states will cause a much larger issue than just tax free retirement. Those are dem controlled areas already so statehood for both would bring in 4 new dummycratic seats, virtually ensuring this country continues its downward spiral and lefty policies of the past 13 months!
boy you are bitter why does everything have to be dem or rep we are all men and we are supposed to work together you all act like children
For those who have no knowledge about PR, the current and two previous governors of PR have been Republicans. And the party pushing the statehood is and has been the Republican Party. The Democrats in PR have been fighting against the statehood for decades.
What does being a democrat or republican have to do with being a veteran and the country being behind its vets. We are the ones that have had to fight for the rights and democracy of the US. It does not matter what party affiliate anyone belongs to.
What about the widows and widowers receiving SBP.
What about Florida, if other states get theirs tax free, how come the other states can do the same and get their approved as well. Let’s help ALL VETERANS, we deserve it.
Since Florida has no state tax the military retirement pay is also not taxed by the state of Florida.
It may be tax free from the state, however, it is taxed by federal!
Yes, so this changes nothing.
Some of you may want to take a closer look at your monthly Retiree Account Statement.
Like Tennessee and Texas, Alaska does not have a state income tax, so the author can add Alaska to the list.
Mike asks—What about the same “no tax on military retirement” for those of us that live in Colorado and that are combat wounded/disabled.
I’m a retire vet in pa when will they start not taxing vets
No state tax in PA for military retirement kj
Sorry didn’t see the list above righ
What we need is the Federal Government to stop taxing a soldiers retirement pay
This is state income tax free not us income tax free. Be sure that your state has state income taxes if yours doesn’t then there is no change.
Washington should take a closer look at all retirement pay not being taxed. It is something that has been earned by the veterans and it should be theirs to fully enjoy.
I will enjoy this no taxable income from our military. But since this was passed please be aware that you will still have to include this as income and will have to get taxed at the end.when you file your taxes. I now have to drop my total deduction by one to stay ahead.
The State of Washington has no income tax, therefor it does not tax either military pay or retired military pay
Federal tax free…
How about shaking up Inslee in WA,never gonna happen ,he’s to money hungry!!!!!
Same thing I was just thinking about but of course all of us Retired military members know he won’t do that he keeps wanting more taxes so he can put it in his pocket
Georgia immediately please!
Georgia sucks on all type of taxes… property tax in Muskogee county for me is $5,000 a year. This state makes a living from the retired soldiers and the military.
DOD should remove our military bases from GA.
I live in Alaska and cost of living is a bear, why can’t we get on this list…please!
Because you don’t have a STATE income tax.
Oklahoma does not tax military retirement.
new mexico need,s to start no tax fed and state
All veterans who have served this country and defended this great nation, and blessed to enjoy life with retirement pay, should be TAX FREE income for all veterans in every state. So, Virginia, get on board and lead the way for the rest of the states to unite with tax free military retired pay for all!!!
Let’s Go Virginia!!!!!!
I’d receive benefits if I was eligible. 727n 17th st. Belleville,Il 62226 What about retirement?
Montana needs to get on board for tax free retirement military pay
I’m also a retired veteran, also VA disability, short to small income, I live in Nevada, no state tax, but every year I owe federal income tax, I’m 70 yrs now and trying to make ends meet for me and my wife, I strongly feel that we served our country we should not have to pay federal taxes on our retirement pay, please just let us live in peace, and not owe the government for serving our country.
Disability is non taxable
I think Oklahoma should certainly be on that list! This has always been a lower income for households the retirees who pass away leave a widow that every little bit will help out. Thank you for letting me comment.
Kathy Sawyer
A disabled Old Widow counting on my husband’s retirement!
Oregon, I’ve paid my dues so please get on board
Florida has quite a number of retired Military, why are we not on this list?
Because you don’t have a STATE income tax for ANY income.
Who do we get in contact with ti see about Oklahoma? Is there an E-mail?
Because you don’t have a STATE income tax for ANY income.
Maryland needs to be on this list ASAP. MD is one state that taxes everything no relief for Veterans at all. Please tell us how these states went through the process, that will be helpful in raising the issue in MD.
I have seen the list and I to want to know where is Florida on this issue, ????
no tax
I am currently in Florida looking to move and understand Florida does not have state or tax military retirement income. Is this not true?
true
OK California! Get off your dead butt and join in!!!!!!! John G. do something for us veterans
I live in Michigan and did my taxes and it was taxed
What about Colorado? I’m 100% VA PT and Army retiree.
Let’s go TX, what the hell are you waiting for, an invitation? There’s 15 military bases here. This is the least you could do!!
not taxed in Texas
Florida I hope that they would stop taxing our retirement we have the largest veteran population outside of California and they taxes everything they would tax air if they could get away with it
not true it isn’t taxed in Florida
I am a widow of a Veteran, but i personally think so many people do not give what all Vets and the military deserve!!!!! They need to thank them for there service everyday, and respect them for everything they have done for us and this country!!!! People soon forget they lay down their life every day to protect us in this sooo troubled world.. i even think all those rich nuts in Washington should say no retirement check should be taxed on after you have worked 35 40 years!!!! Wish I could afford to show my refrig with all that expensive ice cream in it
The states mentioned all have STATE income taxes. They have only decided to no longer consider military retirement pay taxable for STATE income tax. If you live in a state that has no STATE income tax then, of course, your military retirement pay isn’t taxed by the STATE. STATES do not decide what income the FEDS can tax. The FEDS do that. If you live in Texas, Florida, Tennessee, Wyoming, or any other state that DOES NOT have a STATE income tax, then there is nothing for the STATES to change regarding the taxable status of military retirement pay. If you live in a state that DOES have a STATE income tax, then your retirement pay may be taxed. In Illinois, our military retirement pay is tax-exempt, but my other earned income (read: paycheck) is taxable. Hopes this clears it up for anyone wanting to know when Tennessee, Texas, Florida, or any other state that DOES NOT have a STATE income tax, is going to change their non-existent STATE income tax to exempt their military retirement pay.
Well, Wa State Governor will never allow this to happen. He one greedy asshat and will take every dime he can get his hands on!
Florida should be tax free also
it is
what about the states that have no income tax at all, Nevada, Washington, Wyoming, Texas, Florida and Tennessee? Why are they not on the list? 26 + 6 = 32
Alaska too! 33 in all
Eliminating taxes of any kind, especially in Montana, is like taking dope away from an addict cold turkey or worse. Politicians, especially democrats, treat taxes collected as if their life depended on them.
Georgia Please Help your Retired Veterans. We put in so much we are deserving of this. Thank you.
NOTHING from the Left Coast. I should move eastward.
When might Rhode Island get on board? The neighboring states did it. The last time it was brought up at the state house the speaker said there was too many officers retired and doesn’t need a tax break.
This is a misleading – even deceptive headline (“Military Retirement Pay Will Now Be Tax Free in These 5 States”). Taxes will continue to be paid at the Federal level (basically, taking back some of the money that they send us every paycheck). This report only covers what STATES tax or don’t tax. Uncle Sam still gets his cut. Still – it’s significant. Whereas if U.S. takes 15% and the State takes 10%, that’s a serious chunk.
Well the state of New Jersey has been taxing my military pension since 1999 but tax laws state I can only go back 3 years so someone is enjoying my earn money
Giving and Sacrificing your life for a country this should be enough for any retired vet !
I agree with most of the statements above, however, if the federal government wants to do something for all r
veterans they should pass a law exempting all military retirement pay.
What about those who could not retire but are on VA service connected Disability? Isn’t disability already tax free?
You are correct. VA disability payments are tax free.
How about the Federal Govt (IRS) give all GI’s retirement payment free of Fed tax.
Florida, I didn’t see you on the list…WHY??
Oklahoma don’t tax military retirement
California is desperately in need of not taxing military retirement pay. The cost of living is already expensive. Why loose military families to other states? Change the tax laws for retirees in California.
While it is nice that some states have jumped on this, what is holding up the rest of the states from the same? And why is it the military retirement is considered income in the federal system?
I’m a military retire, and I could use the tax break but I joined the military to serve my country not to expect a tax break, however I would take it if it was offered.
Florida does not tax military retired pay.
Florida was left off the list of states that do not tax retired military pay. It was probably an oversight?
I am not the veteran my husband was home past away about 2 an a half years we . Got a new house June is 2020 he past September of 2020 . Am fight to keep the house . Am I intieted this money. ??
Military retirement pay should be free of ALL TAXES. That’s the least we should do for our military personnel. Our government gives away far too much free stuff. You would think we could take care of our military and homes veterans first.
Those of you with gripes with your state taxing your military retired pay need to contact your state representatives and state senators so they know how you feel and so they know you want the law changed. That’s the first step to getting something done. Email them, call them, write them a letter — whatever your style is — and keep doing it. The more often you do it — and the more people who do it — the better your chances are for making a change.
You all need to give up on the fantasy of the federal government not taxing your military retirement pay. As broke as the U.S. government is, they will continue to tax all income you have, except something like disability income or something similar. Focus your efforts at the state level (see the previous paragraph).
Why isn’t Georgia on this comprehensive list for non-tax of military pay both federal and state?
It always made me mad that Arizona taxed my military retirement. I just happened to retire here and didn’t earn any of my military pay as a resident of Arizona, so thankfully they fixed this problem.
What about Florida? My understanding is they tax NO pensions, including military retirement pay.
Maryland representatives not for tax free for veterans should lose our vote. Who is for it?
Don Soeken
Yeah nothing is free; the way it reads is tax free retirement but they don’t tell you it’s included in your yearly income. Sooooo it’s free though the year but not at the end of the year. You get to use more of your retirement pay for living expenses. Pay at the end.
Check it out with your State IRS office
Our income is taxed, then we pay taxes on income that is already taxed. We go to the store and purchase things and pay more taxes, how come we can’t file our receipts? Or can we? We used to get a break by retiring in the military, not anymore. Georgia is a greedy state.
We need to get ALL THE STATES ON BOARD. WE have all paid our dues already, let’s hope FLORIDA IS NEXT come on Governor Ron help us out.
It’s time for every state to realize what veterans have sacrificed for their country l spent 36 years of my life wearing the uniform
All veterans worked for the U.S. Government, our retirement should be tax exempt with the Federal Government. Let’s not address state income tax only, The IRS should have a provision that all retirement pay is exempt from taxes.
Georgia get on board. 100% disability should make the exemption automatic
What about Federal Government Retiree??