State Tax Information for Military Members and Retirees

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You may know that military allowances like Basic Allowance for Housing are tax-free. You may also know that most VA benefits are also tax-free.

Did you know that many states do not charge income tax on active duty or retired military pay? Many others tax only a portion of these pays.

To see what type of tax breaks your state offers for military members, retirees and survivors check out our list. 

Alabama

Alaska

Arizona

  • Military income: Tax-free.
  • Retired pay: Up to $3,500 of military retirement pay and/or survivor benefits excluded.
  • Survivor Benefit Plan: Same as retired pay.
  • Arizona Department of Revenue

Arkansas

California

  • Military income: Follows federal tax rules.
  • Retired pay: Follows federal tax rules.
  • Survivor Benefit Plan: Follows federal tax rules.
  • California Franchise Tax Board

Colorado

  • Military income: Tax-free if stationed OCONUS and you spend at least 305 days outside the U.S. during the tax year. Accompanying spouse is also eligible as long as they spend at least 305 days outside the U.S.

  • Retired pay: Retirees under age 55 can exclude up to $7,500 income from their taxable income, those 55 - 64 can exclude up to $20,000, at age 65 that amount increases to $24,000.

  • Survivor Benefit Plan: Same as retired pay.
  • Colorado Department of Revenue

Connecticut

  • Military income: If you are stationed outside of the state your military income is tax-free if you don't own a home in Connecticut or visit for more than 30 days. 
  • Retired pay: Tax-free. 
  • Survivor Benefit Plan: Tax-free.
  • Connecticut Department of Revenue Services

Delaware

  • Military income: Follows federal tax rules.
  • Retired pay: Up to $2,000 of military retirement excluded for individuals under age 60; $12,500 if 60 or older.
  • Survivor Benefit Plan: Same as retired pay.
  • Delaware Division of Revenue

District of Columbia

  • Military income: Follows federal tax rules.
  • Retired pay: Follows federal tax rules.
  • Survivor Benefit Plan: Follows federal tax rules.
  • DC Office of Tax and Revenue

Florida

Georgia

  • Military income: Follows federal tax rules.
  • Retired pay: Taxpayers over 62 or permanently disabled may be eligible for a $4,000 exclusion of retired pay.
  • Survivor Benefit Plan: Same as retired pay.
  • Georgia Department of Revenue

Hawaii

Idaho

  • Military income: Tax-free if stationed out-of-state.
  • Retired pay: Tax free for for retirees over 65, disabled retirees over 62. 
  • Survivor Benefit Plan: Same as retired pay.
  • Idaho State Tax Commission

Illinois

Indiana

  • Military income: Up to $5,000 of military income is tax-free
  • Retired pay: Up to $6,250 plus 50% of retired pay over that amount is tax-free for 2019. That will increase to 75% in 2021 and 100% for taxable years beginning after 2021.
  • Survivor Benefit Plan: Same as retired pay.
  • Indiana Department of Revenue

Iowa

Kansas

Kentucky

  • Military income: Tax-free
  • Retired pay: Up to $31,110 is tax-free, you may be able to exclude more in some situations.
  • Survivor Benefit Plan: Same as retired pay.
  • Kentucky Department of Revenue

Louisiana

  • Military income: Up to $30,000 is tax-free if stationed out-of-state for 120 or more consecutive days
  • Retired pay: Tax-free
  • Survivor Benefit Plan: Tax-free.
  • Louisiana Department of Revenue

Maine

  • Military income: Military income earned out-of-state is tax-free.
  • Retired pay: Tax-free.
  • Survivor Benefit Plan: Tax-free.
  • Maine Revenue Services

Maryland

  • Military income: If your total income is less than $30,000 you can deduct up to $15,000 of military pay if stationed OCONUS.
  • Retired pay: The first $5,000 is tax-free. That amount increases to $15,000 for those 55 or older.
  • Survivor Benefit Plan: Same as retired pay.
  • Comptroller of Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

  • Military income: Tax-free.
  • Retired pay: Follows federal tax rules.
  • Survivor Benefit Plan: Follows federal tax rules.
  • Montana Department of Revenue

Nebraska

Nevada

New Hampshire

New Jersey

  • Military income: Tax-free if you live outside NJ. Living on ships, barracks, government housing or housing paid for by the military (with BAH) doesn't count.
  • Veteran deduction: Honorably discharged veterans qualify for a one-time $6,000 tax deduction in the year they are discharged from active duty.
  • Retired pay: Tax-free.
  • Survivor Benefit Plan: Tax-free.
  • New Jersey Division of Taxation

New Mexico

New York

  • Military income: Tax-free if you: 1) did not maintain any permanent home in New York; 2) maintained a permanent home outside New York during the entire year (barracks, bachelor officers´ quarters  or shipboard don't qualify.); 3) spent less than 30 days in New York during tax year.  It also is tax-free if you were in a foreign country for at least 450 days during any period of 548 consecutive days.
  • Retired pay: Tax-free.
  • Survivor Benefit Plan: Tax-free.
  • New York Department of Taxation and Finance

North Carolina

  • Military income: Follows federal tax rules.
  • Retired pay: If you have five years of creditable service as of Aug. 12, 1989, all military retired pay is exempt from taxes.
  • Survivor Benefit Plan: Same as retired pay.
  • North Carolina Department of Revenue

North Dakota

Ohio

  • Military income: Tax-free if stationed outside Ohio.
  • Retired pay: Tax-free.
  • Survivor Benefit Plan: Tax-free.
  • Ohio Department of Taxation

Oklahoma

  • Military income: Tax-free
  • Retired pay: The greater of 75% of retirement pay or $10,000 is tax exempt
  • Survivor Benefit Plan: Same as retired pay.
  • Oklahoma Tax Commission

Oregon

  • Military income: All active duty pay earned out-of-state is tax-free, up to $6,000 of active-duty pay earned in Oregon is also tax-free
  • Retired pay: If you had military service before October 1, 1991 you may be able to deduct a portion of your retirement pay. If you didn't have military or federal service prior to October 1, 1991, your military retirement is taxed normally.
  • Survivor Benefit Plan: Same as retired pay.
  • Oregon Department of Revenue

Pennsylvania

Rhode Island

  • Military income: Follows federal tax rules.
  • Retired pay: Follows federal tax rules.
  • Survivor Benefit Plan: Follows federal tax rules.
  • Rhode Island Department of Revenue

South Carolina

  • Military income: Active duty pay is taxable. Reserve & National Guard drill pay is not taxable.
  • Retired pay: If under age 65, you can deduct up to $14,000 of retirement income when filing. If 65 or older that amount is $27,000. You must have other income, besides military retirement, to qualify for this.
  • Survivor Benefit Plan: Same as retired pay.
  • South Carolina Department of Revenue

South Dakota

Tennessee

Texas

Utah

  • Military income: Follows federal tax rules.
  • Retired pay: Tax-free beginning in 2021
  • Survivor Benefit Plan: Tax-free beginning in 2021
  • Utah State Tax Commission

Vermont

  • Military income: Active duty military pay earned outside NH is tax-free. 
  • Retired pay: Follows federal tax rules.
  • Survivor Benefit Plan: Follows federal tax rules.
  • Vermont Department of Taxes

Virginia

  • Military income: Up to $15,000 of military basic pay received during the taxable year may be exempted from Virginia income tax. For every $1.00 of income over $15,000, the maximum subtraction is reduced by $1.00. For example, if your basic pay is $16,000, you are entitled to deduct only $14,000. You are not eligible for the subtraction if your military basic pay is $30,000 or more. For VA National Guard, up to 39 calendar days of service or $3,000 (whichever is less) may be deducted from your income when filing. This deduction is only available for O-3 and below.
  • Retired pay: Follows federal tax rules.
  • Survivor Benefit Plan: Follows federal tax rules.
  • Virginia Tax Website

Washington

West Virginia

Wisconsin

Wyoming

U.S. Territories & Possessions

Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Virgin Islands and Puerto Rico have their own independent tax departments. If you have income from one of these possessions, you may have to file a U.S. tax return only, a possession tax return only, or both returns. This generally depends on whether you are considered a resident of one of the possessions. In some cases, you may have to file a U.S. return, but be able to exclude income earned in a possession from U.S. tax. For more information, see the IRS International Taxpayer page.

American Samoa

Tax Division Government of American Samoa
Pago Pago, American Samoa 96799

Commonwealth of the Northern Mariana Islands

Division of Revenue and Taxation
Commonwealth of the Northern Mariana Islands
P. O. Box 5234, CHRB
Saipan, MP 96950

Guam

Department of Revenue and Taxation
Government of Guam
P.O. Box 23607
GMF, GU 96921
Phone: 671-472-7471

Puerto Rico

Negociado de Asistencia
Contributiva y Legislación
Departamento de Hacienda
P.O. Box 565
San Juan, Puerto Rico 00902-6265
Phone: 787-721-2020, ext. 3611

Virgin Islands

Virgin Islands Bureau of Internal Revenue
9601 Estate Thomas
Charlotte Amalie
St. Thomas, U.S. Virgin Islands 00802
Phone: 340-774-5865

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