States Retired Military Pay Tax Exemption
See if you qualify for a State Retired Military Pay Tax Exemption:
Alabama
Yes.
Alaska
Yes. Alaska does not have a personal income tax.
Arizona
Yes.
Arkansas
Yes.
Colorado
Yes.
Delaware
Yes. Partial exemption.
Florida
Yes. Florida does not have a personal income tax.
Georgia
Yes. Partial. Veterans who retired from the military and are under 62 years of age are eligible for an exemption of up to $17,500 of military retirement income. An additional exemption of up to $17,500 is available for veterans under 62 who have at least $17,500 of earned income. Veterans ages 62 to 64 are eligible for Georgia’s existing retirement income tax exemption for up to $35,000. Those over the age of 65 are eligible for an exemption of up to $65,000.
Hawaii
Yes.
Illinois
Yes.
Indiana
Yes. Retired pay no longer taxed after 2022.
Iowa
Yes.
Kansas
Yes.
Kentucky
Yes. Up to $31,110 is exempted.
Louisiana
Yes.
Maine
Yes.
Maryland
Yes. Partial. Maryland only provides a partial exclusion between $12,500 and $31,110.
Massachusetts
Yes.
Michigan
Yes.
Minnesota
Yes.
Mississippi
Yes.
Missouri
Yes. Public pensions are not taxed if below $85,000 for filing individually or $100,000 for filing jointly.
Montana
Yes. Partial. Only 50% of the pay is exempt and only for 5 years.
Nebraska
Yes.
Nevada
Yes. Nevada does not have an income tax.
New Hampshire
Yes. New Hampshire has no income tax.
New Jersey
Yes. Partial. Get up to $6,000 exempted.
New Mexico
Yes. Yes. Depending on income level, taxpayers 65 years of age or older may be eligible for an exemption from taxable income of up to $8,000 each
New York
Yes.
North Carolina
Yes.
North Dakota
Yes.
Ohio
Yes.
Oklahoma
Yes. Only 75% of retired pay is exempt.
Oregon
Yes. Partial. If your household income plus social security is $22,500 (filing single) or $45,000 (filing jointly).
Pennsylvania
Yes.
South Carolina
Yes.
South Dakota
Yes. South Dakota has no income tax.
Tennessee
Yes. Tennessee does not have an income tax rate.
Vermont:
Yes. Partial. It exempts the first $10,000 but is subjected to an Annual Gross Income cap of $50,000 (single) and $65,000 (joint). Full exemption at full social security age.
Virginia:
Yes. Partial. Up to $40,000 is exempt.
Washington
Yes. Washington state does not have an income tax.
West Virginia
Yes
Wisconsin
Yes.
Wyoming:
Yes. Wyoming does not have a state income tax.
