State Tax Information for Military Members and Retirees

State Tax Breaks Available for Military and Retirees

You may know that military allowances such as the Basic Allowance for Housing are tax-free. You may also know that most Department of Veterans Affairs 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

• Military income: Follows federal rules
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Tax-free
• Alabama Department of Revenue

Alaska

• No state income tax. Legal residents are eligible for the Permanent Fund Dividend.
• Alaska Department of Revenue

Arizona

• Military income: Tax-free
• Retired pay: Tax-free
• Survivor Benefit Plan: Same as retired pay
• Social Security: Tax-free
• Arizona Department of Revenue

Arkansas

• Military income: Tax-free
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Tax-free
• Arkansas Department of Finance

California

• Military income: Military pay is taxable if stationed in California
• Retired pay: Follows federal tax rules
• Survivor Benefit Plan: Follows federal tax rules
• Social Security: Tax-free
• California Franchise Tax Board

Colorado

• Military income: Tax-free if stationed outside the continental United States 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: Military retirees under age 55 can exclude up to $15,000 of their retirement pay from their gross income; while all retirees ages 55-64 can exclude up to $20,000; and those 65 and over can exclude up to $24,000.
• Survivor Benefit Plan: Same as retired pay
• Social Security: Taxable
• 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
• Social Security: Taxable
• Connecticut Department of Revenue Services

Delaware

• Military income: Follows federal tax rules
• Retired pay: Up to $12,500 of military retirement excluded for retirees under age 60
• Survivor Benefit Plan: Same as retired pay
• Social Security: Tax-free
• 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
• Social Security: Tax-free
• DC Office of Tax and Revenue

Florida

• No state income tax
• Florida Department of Revenue

Georgia

• Military income: Follows federal tax rules
• Retired pay: $17,500 of military retirement income can be excluded for retirees younger than 62; and an additional $17,500 can be excluded for those with more than $17,500 of earned income in Georgia. All Georgia retirees ages 62 to 64 may exempt up to $35,000. Those 65 and older may claim an exemption of up to $65,000.
• Survivor Benefit Plan: Same as retired pay
• Social Security: Tax-free
• Georgia Department of Revenue

Hawaii

• Military income: Follows federal tax rules
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Tax-free
• Hawaii Department of Taxation

Idaho

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

Illinois

• Military income: Tax-free
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Tax-free
• Illinois Department of Revenue

Indiana

• Military income: Up to a $5,000 deduction. Tax-free starting with 2024 taxes
• Retired pay: Tax-free
• Survivor Benefit Plan: Same as retired pay
• Social Security: Tax-free
• Indiana Department of Revenue

Iowa

• Military income: Tax-free
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Tax-free
• Iowa Department of Revenue

Kansas

• Military income: Follows federal tax rules, but recruitment and retention bonuses, money received from the services to repay student loans, and death benefits may be subtracted from the adjusted gross income.
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Taxable
• Kansas Department of Revenue

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
• Social Security: Tax-free
• Kentucky Department of Revenue

Louisiana

• Military income: Beginning in 2022, up to $50,000 is tax-free if stationed out of state for 120 or more consecutive days.
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: 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
• Social Security: 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 outside the continental United States.
• Retired pay: The first $12,500 is tax-free starting with the 2023 tax year. That amount increases to $20,000 for those 55 or older.
• Survivor Benefit Plan: Same as retired pay
• Social Security: Tax-free
• Comptroller of Maryland

Massachusetts

• Military income: Follows federal tax rules
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Tax-free
• Massachusetts Department of Revenue

Michigan

• Military income: Tax-free
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Tax-free
• Michigan Department of Treasury

Minnesota

• Military income: Tax-free
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: The maximum subtraction for 2023 taxes is $5,840 for married joint filers; $2,920 for married separate filers; and $4,560 for single and head-of-household filers.
• Minnesota Department of Revenue

Mississippi

• Military income: Follows federal tax rules
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Tax-free
• Mississippi Department of Revenue

Missouri

• Military income: Tax-free
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Taxable
• Missouri Department of Revenue

Montana

• Military income: Tax-free
• Retired pay: Starting in the 2024 tax year, residents who work in Montana may deduct up to 50% of military retirement or survivor pay for up to the first five years of meeting the eligibility requirements. For retirees in general, up to $5,060 is exempt if gross income is less than $42,140 for the 2023 tax year. Starting in the 2024 tax tear, taxpayers ages 65 and over will receive a $5,500 subtraction from their federal taxable income.
• Survivor Benefit Plan: Follows federal tax rules
• Social Security: Taxable
• Montana Department of Revenue

Nebraska

• Military income: Follows federal tax rules
• Retired pay: Tax-free
• Survivor Benefit Plan: Follows federal tax rules
• Social Security: Taxable
• Nebraska Department of Revenue

Nevada

• No state income tax.
• Nevada Department of Taxation

New Hampshire

• No income tax -- tax on interest and dividends only.
• New Hampshire Department of Revenue Administration

New Jersey

• Military income: Taxable, except combat pay for tax year 2021 and later
• 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
• Social Security: Tax-free
• New Jersey Division of Taxation

New Mexico

• Military income: Tax-free
• Retired pay: Follows federal tax rules
• Survivor Benefit Plan: Up to $30,000 is tax-free starting in the 2024 tax year.
• Social Security: Same as retired pay
• New Mexico Taxation and Revenue Department

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 the 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
• Social Security: Tax-free
• New York Department of Taxation and Finance

North Carolina

• Military income: Follows federal tax rules
• Retired pay: Tax-free
• Survivor Benefit Plan: Same as retired pay
• Social Security: Tax-free
• North Carolina Department of Revenue

North Dakota

• Military income: Tax-free starting with the 2023 tax year
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Tax-free
• North Dakota State Tax Commissioner

Ohio

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

Oklahoma

• Military income: Tax-free
• Retired pay: Beginning in 2022, retirement pay is tax-free.
• Survivor Benefit Plan: Same as retired pay
• Social Security: Tax-free
• 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 Oct. 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 Oct. 1, 1991, your military retirement is taxed normally.
• Survivor Benefit Plan: Same as retired pay
• Social Security: Tax-free
• Oregon Department of Revenue

Pennsylvania

• Military income: Tax-free if stationed out of state
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Tax-free
• Pennsylvania Department of Revenue

Rhode Island

• Military income: Follows federal tax rules
• Retired pay: Effective in 2023, military retirement is tax-free
• Survivor Benefit Plan: Same as retired pay
• Social Security: Taxable
• Rhode Island Department of Revenue

South Carolina

• Military income: Active duty pay is taxable. Reserve or National Guard drill pay is not taxable.
• Retired pay: Effective in 2022, military retirement is tax-free.
• Survivor Benefit Plan: Same as retired pay
• Social Security: Tax-free
• South Carolina Department of Revenue

South Dakota

• No state income tax
• South Dakota Department of Revenue

Tennessee

• Tennessee has no income tax, but it does have a tax on interest and dividends.
• Tennessee Department of Revenue

Texas

• No state income tax
• Texas Comptroller of Public Accounts

Utah

• Military income: Follows federal tax rules
• Retired pay: A non-refundable credit of 4.65% of retired pay offsets the Utah tax on that income.
• Survivor Benefit Plan: A non-refundable credit of 4.65% of survivor's benefits offsets the Utah tax on that income.
• Social Security: Taxable
• Utah State Tax Commission

Vermont

• Military income: Active duty military pay earned outside Vermont is tax-free.
• Retired pay: Up to $10,000 in retirement income is tax-free for those with a gross income less than $50,000 for single filers or $65,000 for joint filers.
• Survivor Benefit Plan: Follows federal tax rules
• Social Security: Taxable
• 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 of income over $15,000, the maximum subtraction is reduced by $1. 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 Virginia 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: A $20,000 exemption in the 2023 tax year; $30,000 in 2024, with the age requirement expiring in this tax year; and $40,000 in 2025 and beyond.
• Survivor Benefit Plan: Same as retired pay.
• Social Security: Tax-free
• Virginia Tax Website

Washington

• No state income tax
• Washington State Department of Revenue

West Virginia

• Military income: Tax-free if the service member maintained a physical presence in the state for less than 30 days
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Taxable
• West Virginia State Tax Department

Wisconsin

• Military income: Follows federal tax rules
• Retired pay: Tax-free
• Survivor Benefit Plan: Tax-free
• Social Security: Tax-free
• Wisconsin Department of Revenue

Wyoming

• No state income tax
• Wyoming Department of Revenue

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

Commonwealth of the Northern Mariana Islands

Guam

Puerto Rico

Virgin Islands

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