Which states tax military retirement pay?
9 states have no income tax at all. 28 more do not tax military retired pay, 13 exclude or offset part of it, and one taxes it with no exclusion we could find.
Each state links to a page that quotes its revenue department word for word and links to the document we read. Many of the partial states depend on your age, your other income or when you served, so read the state's page before relying on the group it sits in. For other retirement income, see which states tax retirement income.
No state income tax 9
Not taxed 28
Partly taxed 13
Taxed 1
All 50 states and D.C.
| State | Military retired pay | In short |
|---|---|---|
| Alabama | Not taxed | No. Alabama lists military retirement pay among the kinds of income exempt from Alabama income tax. |
| Alaska | 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. |
| Arizona | Not taxed | No. From tax year 2021 Arizona excludes retired or retainer pay of the uniformed services from income. |
| Arkansas | Not taxed | No. Arkansas stopped taxing military pensions starting with tax year 2018. |
| California | Partly taxed | Partly. For 2025 through 2029, California lets a qualified taxpayer exclude up to $20,000 of military retirement pay or Survivor Benefit Plan annuity payments. The rest is taxed. |
| Colorado | Partly taxed | Partly. Under 55, Colorado lets a retired servicemember subtract military retirement benefits up to $15,000 a year (2022 through 2028). At 55 or older, military retirement goes under the regular pension subtraction instead, which has its own limits. |
| Connecticut | Not taxed | No. Connecticut says military retirement pay is fully exempt from its income tax. |
| Delaware | Partly taxed | Partly. Delaware gives retired military under 60 a pension exclusion of up to $12,500, against $2,000 for other pensions at that age. At 60 or older the general exclusion of up to $12,500 of pension and eligible retirement income applies. |
| District of Columbia | Taxed | Yes. The District taxes the taxable part of pensions and annuities in your federal adjusted gross income, and we found no exclusion for military retired pay in its instructions. |
| Florida | No state income tax | No. Florida has no individual income tax on wages or retirement income, so military retired pay is not taxed by the state. |
| Georgia | Partly taxed | Partly. Under 62, Georgia excludes $17,500 of military retirement income, plus another $17,500 if you have more than $17,500 of earned income in Georgia. From 62, its general retirement exclusion applies. |
| Hawaii | Not taxed | No. Hawaii does not tax qualifying distributions from employer-funded pensions, and its instructions name military pensions among them. |
| Idaho | Partly taxed | Partly. Military retirement pay can qualify for Idaho's retirement benefits deduction. For 2025 Idaho changed who qualifies: a retired servicemember who is disabled, 62 or older, or under 62 and working enough to have to file a federal return. The deduction has a yearly cap that is reduced by Social Security benefits. |
| Illinois | Not taxed | No. Illinois subtracts federally taxed income from government retirement plans, along with qualified employee plans, IRAs and Social Security. Military retired pay is a government retirement plan payment. |
| Indiana | Not taxed | No. For 2022 and later, Indiana's deduction equals the whole amount of military retirement income and survivor's benefits. |
| Iowa | Not taxed | No. Iowa exempts retirement pay for service in the Armed Forces, Reserve or National Guard, at any age. Only pay from DFAS or a similar source counts. |
| Kansas | Not taxed | No. Kansas lists retirement benefits for service in the U.S. Armed Forces, including the Thrift Savings Plan, among the retirement income it does not tax. |
| Kentucky | Partly taxed | Partly. Kentucky's pension exclusion of $31,110 covers military retirement pay like other pensions. |
| Louisiana | Not taxed | No. Louisiana excludes federal retirement benefits, military and nonmilitary, and military survivor benefit plan payments. |
| Maine | Not taxed | No. Maine fully exempts benefits from a U.S. military retirement plan, survivor benefits included. |
| Maryland | Partly taxed | Partly. Maryland lets you subtract up to $20,000 of military retirement income at 55 or older, and up to $12,500 under 55. |
| Massachusetts | Not taxed | No. Massachusetts excludes U.S. military pensions from gross income. |
| Michigan | Not taxed | No. Michigan subtracts retirement benefits for service in the U.S. Armed Forces, to the extent they are in your AGI. |
| Minnesota | Not taxed | No. Minnesota lets you subtract federally taxable military retirement pay under U.S. Code, title 10. If you take it, you cannot also claim the Credit for Past Military Service. |
| Mississippi | Not taxed | No. Mississippi generally does not tax retirement income, pensions and annuities once the plan's retirement requirements are met, and military retirement is retirement income. |
| Missouri | Not taxed | No. From tax year 2021 Missouri subtracts the taxable military pension from federal adjusted gross income. |
| Montana | Partly taxed | Partly. Montana's Working Military Retirement Exemption lets certain resident military retirees who also have income from a job, a business or a farm subtract a portion of their benefits. Residents receiving military survivor benefits can too. |
| Nebraska | Not taxed | No. Nebraska lets all military retirees exclude 100% of their military retirement benefits, to the extent included in federal AGI. |
| Nevada | No state income tax | No. Nevada has no individual income tax on wages or retirement income, so military retired pay is not taxed by the state. |
| New Hampshire | No state income tax | No. New Hampshire has no individual income tax on wages or retirement income, so military retired pay is not taxed by the state. |
| New Jersey | Not taxed | No. New Jersey lists U.S. military pensions and survivor's benefit payments among the income it does not tax. |
| New Mexico | Partly taxed | Partly. Each armed forces retiree, or surviving spouse of one, can exempt $30,000 of armed forces retirement pay. On a joint return where both qualify, each gets the exemption. |
| New York | Not taxed | No. New York says military pension payments to retirees or their beneficiaries are totally exempt from state, New York City and Yonkers income taxes. |
| North Carolina | Not taxed | No, for most career retirees. Since 2022 North Carolina lets you deduct military retired pay if you served at least 20 years or were medically retired, and Survivor Benefit Plan payments to your beneficiary qualify too. Shorter careers can still fall under the older Bailey decision if service began early enough. |
| North Dakota | Not taxed | No. North Dakota lets retired U.S. armed forces, Reserve and National Guard members, or their surviving spouses, subtract their military retirement benefits. |
| Ohio | Not taxed | No. Military retirement pay is deductible on the Ohio Schedule of Adjustments and is not taxed by Ohio. |
| Oklahoma | Not taxed | No. From tax year 2022 Oklahoma lets each individual exclude 100% of retirement benefits from any component of the Armed Forces. |
| Oregon | Partly taxed | Partly. Oregon taxes residents' pensions, but its federal pension subtraction covers the share of service before October 1, 1991: all of it if every month of service was before that date, none if no month was. |
| Pennsylvania | Not taxed | No. Pennsylvania lists military pension benefits among the income not taxable for its personal income tax. |
| Rhode Island | Not taxed | No. For tax years from 2023, Rhode Island fully exempts military service pensions. |
| South Carolina | Not taxed | No. South Carolina lets taxpayers deduct all military retirement income included in South Carolina taxable income, and the deduction extends to a surviving spouse. |
| South Dakota | No state income tax | No. South Dakota has no individual income tax on wages or retirement income, so military retired pay is not taxed by the state. |
| Tennessee | No state income tax | No. Tennessee has no individual income tax on wages or retirement income, so military retired pay is not taxed by the state. |
| Texas | No state income tax | No. Texas has no individual income tax on wages or retirement income, so military retired pay is not taxed by the state. |
| Utah | 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. |
| Vermont | Partly taxed | Partly. Vermont lets retirees below its income thresholds exclude the first $10,000 of military retirement income. You can take only one of its retirement exemptions. |
| Virginia | Partly taxed | Partly. Virginia's Military Benefits Subtraction lets you subtract up to $40,000 of eligible military benefits on 2025 and later returns ($30,000 for 2024). |
| Washington | No state income tax | No. Washington has no individual income tax on wages or retirement income, so military retired pay is not taxed by the state. |
| West Virginia | Not taxed | No. Since 2019, West Virginia exempts all military retirement income from the Armed Forces, Reserves, National Guard and the non-military uniformed services. |
| Wisconsin | Not taxed | No. Wisconsin exempts payments from the U.S. military retirement system, including the Survivor Benefit Plan. |
| Wyoming | No state income tax | No. Wyoming has no individual income tax on wages or retirement income, so military retired pay is not taxed by the state. |