Does Pennsylvania tax military retirement pay?
Not taxed
No. Pennsylvania lists military pension benefits among the income not taxable for its personal income tax.
In the state's own words
Copied word for word from the official document linked below each quote:
“INCOME NOT TAXABLE FOR PA PIT PURPOSES:”
“Military pension benefits”
Other retirement income in Pennsylvania
No. Pennsylvania does not tax commonly recognized pension and retirement benefits paid after you are eligible to retire and have retired. Early distributions are taxable. The Pennsylvania pension page has the details, and the Pennsylvania Social Security page covers Social Security. No. Pennsylvania lists Social Security as income that is not taxable for its personal income 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 Pennsylvania Department of Revenue 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.
- 2025 PA-40 Personal Income Tax Return InstructionsPennsylvania Department of Revenue. Read on November 13, 2026.