New York

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Summary of New York Military and Veterans Benefits: New York offers special benefits for its military Service members and Veterans including Property Tax Exemptions, New York National Guard Tuition Program, Military Service Recognition Scholarship, Compensation for State Active Duty, Employment Assistance, Civil Service Preference, Special Vehicle License Plates, as well as Hunting, Fishing license and State Park privileges. Eligibility for some benefits may depend on residency, military component, and Veteran disability status.

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New York Military and Veterans State Benefit Highlights and Eligibility


What are my New York Military and Veterans State Tax Benefits?

New York Retired Military Pay Income Taxes: Pension payments received by retired military personnel or their beneficiaries are totally exempt from New York State, New York City, and Yonkers income taxes.
New York State Income Tax Information for Military Personnel and Veterans

Learn more about New York Retired Military Pay Income Taxes

New York Taxes on Military Pay: The City and State Income Taxes for military pay are as follows:

  • houses with suspension bridge in the background If you are a New York State resident and your permanent home (domicile) was in New York State when you entered the military, but you were assigned to duty outside the state, you are still a New York State resident. Your military pay is subject to New York State income tax to the same extent it is subject to federal income tax.

  • If your permanent home (domicile) was in New York State when you entered the military but you meet the conditions for nonresident status (of either Group A or Group B ), your military pay is not subject to New York State income tax.

  • If your permanent home was not New York State when you entered the military, but you were assigned to duty in New York State, you do not become a New York State resident even if you have a permanent place of abode here. You are a nonresident and your military pay is not subject to New York State income tax.

If you are a nonresident, other income that you receive from New York State sources (including your Spouse's income) may be subject to tax.

These rules apply for both New York City and Yonkers income tax purposes.
New York State Income Tax Information for Military Personnel and Veterans

Learn more about New York Taxes on Military Pay

New York Income Tax Benefits for Military Spouses: Military Spouses qualifying under the Service members Civil Relief Act (SCRA) may claim an exemption from New York State personal income tax withholding by filing Form IT-2104-E, New York Certificate of Exemption from Withholding, with their employer. SCRA provides certain tax relief for a military Spouse when they are present in a state solely to be with a Service member who is in that state so they can comply with military orders.
New York State Income Tax Information for Military Personnel and Veterans

Learn more about New York Income Tax Benefits for Military Spouses

Soldiers in formation New York State Taxes on Combat Zone Pay: Military pay received for active service as a member of the armed services of the United States in an area designated as a combat zone is exempt from New York State, New York City and Yonkers taxes. Service members are entitled to a New York subtraction modification in computing their New York adjusted gross income for the amount of combat pay included in their federal adjusted gross income.
New York State Income Tax Information for Military Personnel and Veterans

Learn more about New York State Taxes on Combat Zone Pay

New York State Taxes on Organized Militia Pay: The New York State organized militia includes the New York Army National Guard, the New York Air National Guard, the New York Naval Militia, and the New York Guard.

If you are a member of the New York State organized militia, you are entitled to a New York subtraction modification in computing your New York adjusted gross income (AGI) if:

  • Your federal AGI includes any pay received as a member of the New York State organized militia for performing active service within New York State due to:

    • State active duty orders issued under New York Military Law section 6.1, or

    • Active service of the United States pursuant to federal active duty orders, for service other than training, issued under United States Code Title 10.

However, income received for regular duties in the organized militia (for example, pay received for the annual two-week training program) does not qualify for this subtraction modification.
New York State Income Tax Information for Military Personnel and Veterans

Learn more about New York State Taxes on Organized Militia Pay

Disabled Veteran with prostetic legNew York State Taxes on U.S. Department of Veterans Affairs Military Disability Retired Pay: Military Disability Retirement Pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service in the Armed Forces should not be included in taxable income if any of the following conditions apply:

  • You were entitled to receive a disability payment before September 25, 1975

  • You were a member of the military (active or reserves) or were under a binding written commitment to become a member on September 24, 1975

  • You receive disability payments for a combat-related injury. This is a personal injury or sickness that:

    • Resulted directly from armed conflict,

    • Took place while you were engaged in extra-hazardous service,

    • Took place under conditions simulating, including training exercises such as maneuvers, or

    • Was caused by an instrumentality of war.

  • You would be entitled to receive disability compensation from the Department of Veterans Affairs (VA) if you filed an application for it (the exclusion under this condition equals the amount you would be entitled to from the VA).

Learn more about New York State Taxes on U.S. Department of Veterans Affairs Military Disability Retired Pay