Does Alaska tax military retirement pay?
No state income tax
No. Alaska has no individual income tax on wages or retirement income, so military retired pay is not taxed by the state.
In the state's own words
Copied word for word from the official document linked below each quote:
“1980 – The Legislature repealed the parts of AS 43.20 that impose the individual income tax and retains the exemption for S-Corporations.”
Other retirement income in Alaska
No. Alaska has no individual income tax, so pensions, IRA withdrawals and other retirement income are not taxed by the state. The Alaska pension page has the details, and the Alaska Social Security page covers Social Security. No. Alaska has no individual income tax, so it does not tax Social Security or any other retirement income.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the Alaska Department of Revenue, Tax Division before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Annual Report, Fiscal Year 2024Alaska Department of Revenue, Tax Division. Read on November 13, 2026.