Does Utah tax military retirement pay?
Partly taxed
Partly. Utah does not exclude military retirement pay, but it gives a Military Retirement Credit of 4.5% of the taxable pay, which cannot exceed your tax.
In the state's own words
Copied word for word from the official document linked below each quote:
“You may qualify for this credit if you (or your spouse, if filing jointly) received taxable military retirement pay.”
“Military Retirement Credit: Multiply line 1 by 0.045”
Details worth knowing
- You cannot take this credit together with Utah's Retirement Credit (code 18).
Other retirement income in Utah
Yes. Utah taxes pensions and offers a retirement credit of up to $450 for people born on or before December 31, 1952, which shrinks with income. The Utah pension page has the details, and the Utah Social Security page covers Social Security. Yes, but with a credit. Utah taxes Social Security, then gives a Social Security Benefits Credit that shrinks as income rises.
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 Utah State Tax Commission 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.
- Military Retirement Credit (code AJ)Utah State Tax Commission. Read on November 13, 2026.