Thanks to new laws that were passed, military retirement pay will now be tax free in five more states.
Over 100,000 military retirees will benefit from the new laws and see extra money in their pockets.
Here are the five states that decided to no longer tax military retirement pay:
- Arizona
- North Carolina
- Utah
- Indiana
- Nebraska
Military retirees living in Arizona, North Carolina and Utah will see the changes take effect immediately.
For those who live in Indiana or Nebraska, the changes will become effective with the 2022 tax year, according to Military.com.
The addition of these five states brings the total number of states that do not tax military retirement income to 26.
Here’s an updated list of all U.S. states that don’t tax military retirement pay:
- Alabama
- Arizona
- Arkansas
- Connecticut
- Hawaii
- Illinois
- Indiana
- Iowa
- Kansas
- Louisiana
- Maine
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Nebraska
- New Jersey
- New York
- North Carolina
- North Dakota
- Ohio
- Pennsylvania
- Utah
- West Virginia
- Wisconsin
Five more states deciding to not tax military retirement income is a good move in the right direction, hopefully more states will follow suit soon.
Jose Pagan says
Virginia next please
Chuck D says
I agree, Virginia get onboard soon
Ursula Lundy says
I bet they wont, that state taxes absolutely everything. Will they make the survivor benefit tax-free too??
Eddie R Cox says
All veterans should be tax free of all taxes in all states. We have already paid our “FAIR” share…as Biden says
Torry says
Amen! You said it. Heck it should be a Nationwide Law. We served the country not the state!
Bonnie Gosier Cody says
Right on!!! All state veterans NEED STATE TAX FREEDOM NOW!!!!!!
We ALL DESERVE IT!!!
Angie Bains says
Is it just state tax free or you still pay federal taxes on it?
HUEY WYCHE says
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.
MICHAEL WILLIAMS says
Totally agree, brother!
Darlene says
I agree all military retirement should be tax free
WILLIE CHAFEN says
Yeah everyone but Georgia
David says
Georgia doesn’t tax military or government retirements. Only 5.9 of federal on the retirements
Toni says
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.
Peggy says
Alaska next please
Dottie Timmer says
Yes Alaska please
Sgt. Cisco says
Cisco said what happen to Nevada, Let’s get on board. We have a lot of Vets who are retired also.
James E Spates says
Agreed, but all states SHOULD look at this blue print and offer this or one hell of a tax break.
Georgia are you listening!!!
William C.Bush says
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.
nn says
Amen to that
Glenwood Shearer says
California next?
OS1 (SW) USN-RET. says
Don’t hold your breath .California is so fare Left I think It has Left the United States !
Gary Williams says
how about Tenn. also
Brandie Elizalde says
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.
Ronald Herrington says
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).
Steve Foti says
Agree – Sooner the Better!
ROBERT Kosiba says
It would benefit the many retired vets in Florida Gov Desantis love Bob (R)
David says
Florida has no state income tax.
Joe says
The “Live Free or Die” state of New Hampshire has no state income tax.
Nancy says
No state or city tax in Fl.
Je says
Florida doesn.t have state income taxry
Keekee says
This law should be passed in all states. Especially veterans who served 20+ years!
Carmen West says
Heck yeah!!! We that served the 20+ years no matter what state we’re in should get that retirement tax free. We’ll see.
Smiley says
Heck yeah!!! We that served the 20+ years no matter what state we’re in should get that retirement tax free. We’ll see.
Robert miller says
They forgot to include Nevada
VICKIE L MOTT says
yes virginia get onboard
Izeal says
Yeah what’s up with South Carolina for veterans retirement why the holdup
Michael Jones says
Yes I’m in that boat. South Carolina needs to get onboard!
BARBARA Cloninger says
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..
Larry says
Federal Tax should be tax free also.
Cindy says
Is there a petition we can sign to get the rest of the states on board?
Jeane Freeman says
Military retirement pay should be tax-free for State and Feds!
Keith Gatton says
I agree 💯 %
Artie Maynard says
Retired railroad is not taxed by the federal government I’m not sure why military retirement is.
Janet Newton says
When might California get on board?
William Grijalba says
You kidding how they finance Illegals
Jeff says
Wait for the outcome of the Midterms and Governor race. Change is good! Vote!!
Larry May says
Come on kentucky, don’t you care bout us veterans
Henry Caswell says
With Ky having billions laid back, they definitely have the resources to help us veterans.
Saundra says
What about Texas
Roger Henson says
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?
Vaughn says
Texas does not have State Income Tax.
Jacqueline says
This is for Federal Tax.
Jim Mofford says
I wish but you are quite incorrect this is absoluteiy for state income taxnot fedral. Federal does offer a taxbreak.
Jerry says
Papaj
James Espinoza says
There is no state income tax in Texas.
Adonius Ridley says
Ok, so what and what do that have to do with not taxing our military retirement
Jacqueline says
Thus isn’t about State Tax…it’s referring to Federal Tax. SC is pushing for it now & hopefully, it gets approved!
Tom says
Yea, i was wondering why the writer missed that?
John T. Mooney says
Texas has no income tax., so it is already not taxed by the state.
Richard N says
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?
Michael says
What about Tennessee ? For vets on 100% disabled.
Marti says
If you are 100% disabled it’s tax free (state and federal)
Tiffany says
In Texas you have to 100% disabled VA rated and retirement pay to request tax exempt.
Robert Carnahan says
Who do you contact to get this done? I’m 100% VA disabled and retired after
John Smith says
I live in Texas, and I pay no state taxes on my military retirement pay.
Kenneth White says
but you pay federal tax
John T. Mooney says
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.
Elmer Johnson says
Texas has no Income Tax for anyone!
Michael says
Texas doesn’t have a state income tax.
John says
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.
TROY McCall says
When is California going to be on the list?
I will sign
James P Busbin says
Never !
David Fulkerson (CSM-R) says
Cali is Tax Vacuum and not a Veteran friendly state! Let’s be honest…
Herb says
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.
george I. martin says
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.
James Rector says
What about New Mexico, I have here since 2014 & they are mililary retirement.
Dave LeBlanc says
Far left state.
Jennifer says
What about GA?
BJ Fortier says
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!!!!!
Antonio says
I agree ga is not vet friendly and should get on board ga has a high homeless population and a nice percentage are veterans
Joyce Essien says
Ditto ?
[email protected]
Stephen Blair says
What’s the status on Alaska…
Jim Mofford says
None nor would this be any change for you.
David Boudreau says
no tax
Madeline Palmer says
My husband has been retired but not disabled, no tax relief, and property taxes are climbing.
50RWF says
Tennessee doesn’t have a state tax for anyone.
Félix says
What about Puerto Rico Fellix
Dave LeBlanc says
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.
David Mosley says
why not make them states,they received all benefits an rights just like the other 50 states.
AgentJB74 says
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!
Kenneth White says
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
R. A. DeJesus says
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.
H. says
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.
Patricia Broyles says
What about the widows and widowers receiving SBP.
Carlos E Vega says
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.
Larry says
Since Florida has no state tax the military retirement pay is also not taxed by the state of Florida.
Joanna says
It may be tax free from the state, however, it is taxed by federal!
Chris B says
Yes, so this changes nothing.
Steve Miller (not THAT one) says
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.
Michael says
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.
KENNETH L LINSINBIGLER says
I’m a retire vet in pa when will they start not taxing vets
Kj says
No state tax in PA for military retirement kj
KENNETH L LINSINBIGLER says
Sorry didn’t see the list above righ
Jerry says
What we need is the Federal Government to stop taxing a soldiers retirement pay
Jim Mofford says
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.
Richard says
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.
Kevin burningham says
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.
Mike Burton says
The State of Washington has no income tax, therefor it does not tax either military pay or retired military pay
Joel says
Federal tax free…
Charles Ehy says
How about shaking up Inslee in WA,never gonna happen ,he’s to money hungry!!!!!
Charles Anderson says
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
Henry Corey says
Georgia immediately please!
Rafael Colondres says
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.
Martin Hall says
I live in Alaska and cost of living is a bear, why can’t we get on this list…please!
Chris B says
Because you don’t have a STATE income tax.
Keith H Finley says
Oklahoma does not tax military retirement.
Ralph Ray says
new mexico need,s to start no tax fed and state
Rickie Childs says
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!!!!!!
Tonya Walker says
I’d receive benefits if I was eligible. 727n 17th st. Belleville,Il 62226 What about retirement?
Mitch says
Montana needs to get on board for tax free retirement military pay
Steven Morgan says
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.
Steve says
Disability is non taxable
Kathy Sawyer says
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!
Christopher Cook says
Oregon, I’ve paid my dues so please get on board
Deborah Poutre says
Florida has quite a number of retired Military, why are we not on this list?
Chris B says
Because you don’t have a STATE income tax for ANY income.
Davis L Smales says
Who do we get in contact with ti see about Oklahoma? Is there an E-mail?
Chris B says
Because you don’t have a STATE income tax for ANY income.
Eric Bearden says
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.
Howard Muller says
I have seen the list and I to want to know where is Florida on this issue, ????
David Boudreau says
no tax
Efrain Mark says
I am currently in Florida looking to move and understand Florida does not have state or tax military retirement income. Is this not true?
David Boudreau says
true
john Davidowski says
OK California! Get off your dead butt and join in!!!!!!! John G. do something for us veterans
ej says
I live in Michigan and did my taxes and it was taxed
Jay A Soncrant says
What about Colorado? I’m 100% VA PT and Army retiree.
Jonathan says
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!!
David Boudreau says
not taxed in Texas
Bruce says
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
David Boudreau says
not true it isn’t taxed in Florida
Mary Bechstein says
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
Chris B says
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.
Kathy Travis says
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!
Stephen Lee says
Florida should be tax free also
David Boudreau says
it is
David Boudreau says
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
David Boudreau says
Alaska too! 33 in all
Hastings Lamb III says
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.
Harold Warr says
Georgia Please Help your Retired Veterans. We put in so much we are deserving of this. Thank you.
Curt Piper says
NOTHING from the Left Coast. I should move eastward.
Philip Edwards says
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.
Curt Piper says
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.
pernell parker says
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
Julious Holloway says
Giving and Sacrificing your life for a country this should be enough for any retired vet !
Victor W Clukey says
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.
Hal Davis says
What about those who could not retire but are on VA service connected Disability? Isn’t disability already tax free?
Terry says
You are correct. VA disability payments are tax free.
J. George says
How about the Federal Govt (IRS) give all GI’s retirement payment free of Fed tax.
Brian says
Florida, I didn’t see you on the list…WHY??
Sa.pson Bruner says
Oklahoma don’t tax military retirement
Paula Hood says
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.
Nancy Smith says
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?
Rick A Peters says
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.
Orlando says
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?
Deba Cady says
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. ??
Ed Nemeth says
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.
Steve Miller (not THAT one) says
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).
Carolyn says
Why isn’t Georgia on this comprehensive list for non-tax of military pay both federal and state?
Joseph Lumpkins says
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.
Bob Farley says
What about Florida? My understanding is they tax NO pensions, including military retirement pay.
DONALD RAY SOEKEN says
Maryland representatives not for tax free for veterans should lose our vote. Who is for it?
Don Soeken
Ricky Dee says
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
Colleen T. says
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.
Emil Infusino says
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.
Richard Ball says
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
Robert K Howell says
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.
C Williams says
Georgia get on board. 100% disability should make the exemption automatic
George Garcia says
What about Federal Government Retiree??