Does New Jersey tax military retirement pay?
Not taxed
No. New Jersey lists U.S. military pensions and survivor's benefit payments among the income it does not tax.
In the state's own words
Copied word for word from the official document linked below each quote:
“United States military pensions and survivor's benefit payments”
Other retirement income in New Jersey
Partly. If you are 62 or older (or disabled) and your total income is $100,000 or less, New Jersey lets you exclude taxable pension, annuity and IRA withdrawals up to $100,000 (joint), $75,000 (single) or $50,000 (married filing separately). The exclusion shrinks between $100,001 and $150,000 and ends above $150,000. The New Jersey pension page has the details, and the New Jersey Social Security page covers Social Security. No. New Jersey lists Social Security as income that is not subject to its tax.
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 New Jersey Division of Taxation 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.
- Exempt (Nontaxable) IncomeNew Jersey Division of Taxation. Read on November 13, 2026.