States That Don’t Tax Military Retirement

The vast majority of states do not tax any military retirement pay, and roughly one quarter of the remaining states have limitations in place with regard to what military retirement pay is taxable. The United States Military offers a lifelong monthly annuity payment for military personnel who served for more than twenty years. This retirement plan, in comparison with other retirement plans offered to other portions of the U.S. population, is fairly generous. 

How the state taxes military retirement directly affects the sum that retirees are allotted each month throughout the year. In 2022, there are only four states, including Washington D.C., that fully tax military retirement pay. Half of the states in the U.S. have a state income tax but do not tax any military retirement pay. 

For the states that do tax military retirement benefits, many of them allow for a certain sum of their allotted benefits to remain untaxed. The amount of untaxed retirement pay ranges widely depending on in what state a person is living. Certain states only allow up to $2,000 to be tax exempt, dependent upon age, while others permit deductions up to $30,000 or more per year. 

Scroll through the charts to learn more about how states tax military retirement.

Military Retirement Tax Status by State

Alabama

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

2%

#17 in the US

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Alaska

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MILITARY RETIREMENT TAX STATUShelp

No tax

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Arizona

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

2.59%

#18 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Arkansas

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

2%

#19 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

California

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MILITARY RETIREMENT TAX STATUShelp

Fully Tax

INCOME TAX PER STATEhelp

1%

#7 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Colorado

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MILITARY RETIREMENT TAX STATUShelp

Partial Exemptions

INCOME TAX PER STATEhelp

4.55%

#31 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

Yes

Connecticut

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

3%

#23 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

Yes

Delaware

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MILITARY RETIREMENT TAX STATUShelp

Partial Exemptions

INCOME TAX PER STATEhelp

0%

#1 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Florida

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MILITARY RETIREMENT TAX STATUShelp

No tax

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Georgia

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MILITARY RETIREMENT TAX STATUShelp

Partial Exemptions

INCOME TAX PER STATEhelp

1%

#8 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Hawaii

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

1.4%

#9 in the US

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Idaho

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MILITARY RETIREMENT TAX STATUShelp

Partial Exemptions

INCOME TAX PER STATEhelp

1.13%

#10 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Illinois

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

4.95%

#33 in the US

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Indiana

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

3.23%

#24 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Iowa

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

0.33%

#2 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Kansas

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

3.1%

#25 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

Yes

Kentucky

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MILITARY RETIREMENT TAX STATUShelp

Partial Exemptions

INCOME TAX PER STATEhelp

5%

#39 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Louisiana

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

1.85%

#11 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Maine

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

5.8%

#40 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Maryland

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MILITARY RETIREMENT TAX STATUShelp

Partial Exemptions

INCOME TAX PER STATEhelp

2%

#20 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Massachusetts

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

5%

#41 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Michigan

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

4.25%

#34 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Minnesota

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

5.35%

#42 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

Yes

Mississippi

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

0%

#3 in the US

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Missouri

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

1.5%

#12 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Montana

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MILITARY RETIREMENT TAX STATUShelp

Partial Exemptions

INCOME TAX PER STATEhelp

1%

#13 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

Yes

Nebraska

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

2.46%

#21 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

Yes

Nevada

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MILITARY RETIREMENT TAX STATUShelp

No tax

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

New Hampshire

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MILITARY RETIREMENT TAX STATUShelp

No tax

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

New Jersey

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

1.4%

#14 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

New Mexico

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MILITARY RETIREMENT TAX STATUShelp

Partial Exemptions

INCOME TAX PER STATEhelp

1.7%

#15 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

Yes

New York

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

4%

#35 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

North Carolina

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

4.99%

#36 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

North Dakota

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

1.1%

#16 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

Yes

Ohio

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

0%

#4 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Oklahoma

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MILITARY RETIREMENT TAX STATUShelp

Partial Exemptions

INCOME TAX PER STATEhelp

0.25%

#5 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Oregon

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MILITARY RETIREMENT TAX STATUShelp

Partial Exemptions

INCOME TAX PER STATEhelp

4.75%

#37 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Pennsylvania

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

3.07%

#26 in the US

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Rhode Island

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MILITARY RETIREMENT TAX STATUShelp

Partial Exemptions

INCOME TAX PER STATEhelp

3.75%

#27 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

Yes

South Carolina

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MILITARY RETIREMENT TAX STATUShelp

Partial Exemptions

INCOME TAX PER STATEhelp

0%

#6 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

South Dakota

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MILITARY RETIREMENT TAX STATUShelp

No tax

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Tennessee

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MILITARY RETIREMENT TAX STATUShelp

No tax

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Texas

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MILITARY RETIREMENT TAX STATUShelp

No tax

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Utah

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

4.95%

#38 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

Yes

Vermont

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MILITARY RETIREMENT TAX STATUShelp

Fully Tax

INCOME TAX PER STATEhelp

3.35%

#28 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

Yes

Virginia

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MILITARY RETIREMENT TAX STATUShelp

Fully Tax

INCOME TAX PER STATEhelp

2%

#22 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Washington

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MILITARY RETIREMENT TAX STATUShelp

No tax

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

West Virginia

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

3%

#29 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

Yes

Wisconsin

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MILITARY RETIREMENT TAX STATUShelp

No tax

INCOME TAX PER STATEhelp

3.54%

#30 in the US

PENSIONS TAX STATUShelp

Yes

SOCIAL SECURITY TAX STATUShelp

No

Wyoming

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MILITARY RETIREMENT TAX STATUShelp

No tax

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No