Which states tax my military retired pay?

Share on Facebook Share on X Share on LinkedIn

By the MyArmyBenefits Staff

As tax season looms near, it is a good time to look at the state income tax requirements for retired Soldiers. In the past several years, many states have passed legislation affecting taxes on military retired pay both to show appreciation to Veterans and to attract them to settle in their state after leaving the military.

In 2021, Arizona, Nebraska, North Carolina, and Utah eliminated state taxes on military retirement pay. The state of Louisiana passed a tax exemption for surviving spouses. Delaware and Vermont considered but did not pass legislation. The table linked below compiles all the information on which states fully tax, fully exempt or partially exempt military retired pay. For information on additional state tax benefits, such as property tax relief offered to Veterans, visit our state/territory fact sheets for all 50 states. You may find additional benefits that will help you this tax season.

Go here to view the Table of 2021 State Taxes and Military Retired Pay.