Thanks to new laws that were passed, military retirement pay will now be tax free in five more states.
Over 100,000 military retirees will benefit from the new laws and see extra money in their pockets.
Here are the five states that decided to no longer tax military retirement pay:
- Arizona
- North Carolina
- Utah
- Indiana
- Nebraska
Military retirees living in Arizona, North Carolina and Utah will see the changes take effect immediately.
For those who live in Indiana or Nebraska, the changes will become effective with the 2022 tax year, according to Military.com.
The addition of these five states brings the total number of states that do not tax military retirement income to 26.
Here’s an updated list of all U.S. states that don’t tax military retirement pay:
- Alabama
- Arizona
- Arkansas
- Connecticut
- Hawaii
- Illinois
- Indiana
- Iowa
- Kansas
- Louisiana
- Maine
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Nebraska
- New Jersey
- New York
- North Carolina
- North Dakota
- Ohio
- Pennsylvania
- Utah
- West Virginia
- Wisconsin
Five more states deciding to not tax military retirement income is a good move in the right direction, hopefully more states will follow suit soon.
This article originally appeared on USMilitary.org, and has been shared with permission.
Where can I find assistance in filling out medical forms in DC, MD, or VA.
Anyone know who to contact for getting Georgia on this no taxes? Should the Federal Gov’t just pass a law to exclude Vets from paying taxes?
How about Vermont !
I second that. Vermont should not tax tax incomes of Vets.
Vermont should be on the no tax list.
Don’t forget Texas, Tennessee, and Florida who do not have state taxes. Also that this is state tax and not federal
The Veterans. Do Great Job for Volunteering to The public The Hospital an many other places They help with!!!!
I am a widow of 10 years now and living on one SS check each month. Hardly pays for house and car. Chuck was a Navy man for 18 years and then died from brain cancer with no retirement after serving for 18 years both active and in active. Summers he was an instructor and then suddenly dismissed for high blood pressure which was under control and working. I can’t begin to tell you how sad he was. It was in the 90’s and though he and his commanding officer disputed it they would not back down. I got nothing when he passed to help with expenses after all his time served. I believe widows are neglected, both in SS and service retirement. PS: My son went into the Navy right after high school. My sister’s husband was a Navy man and her grandson also. My cousin was in the Air force and his son also. My uncle was in the Army. This family is proud to have served their country. Keeping my husband’s long-term service, he should have been eligible for a partial retirement for his widow. I call the keeping of his SS GRAND LARCENY.
You can apply for SS from your husbands SS ACCOUNT and see if they at the Ss can assist
Ok! Georgia lets get on board here…Lord knows vets here could use all the assistance they can get.
That break would come right back in spending power anyway…just saying!
I don’t understand this at all. Military should be excluded from pay taxes.
Why is everything so political. Military Retirement is taxed by FEDERAL GOV. and we have had Republicans and Democrats as majority in Congress. It makes no sense to AGAIN TAX SS and Retirement benefits. It hard enough trying to make it on SS and Military Retirement pay. STOP TAXING US …(REPUBLICANS and DEMOCRATS)
I wish the Federal government would stop taxing military retirement as well. I believe we all sacrificed a lot to have earned it at that level as well.
We agree. Pretty sad when the Fed sucks the life out of our retirement plans. I wonder how many of the policy voters even served? Vets should be tax free across the board.
I agree wholeheartedly with that!
Not only do the Feds tax our military retirement they tax social security. Technically that’s double taxation on both.
They should not be able to penalize you if you take social security at 62. You already are taking less so they should be happy but instead penalize you if you make over the set amount. They should be happy people still want to work which puts more money back into social Security. We need to get out Congressmen and Senators to speak up for the hard working American people who have worked hard all their lives for OUR money. Stop giving it to illegal immigrants.
Indeed. My state has no income tax, per se, so the only way I can benefit is for the federal government to not tax my retired pay.
I live in Nevada. I moved here from taxafornia. I saved over $1000 a year in state taxes alone.
Too bad the federal government taxes SS and military retirement.
It is my understanding that Maryland will no longer tax military retirement and just passed a law to that effect very recently.
Am I hallucinating, or are you running behind on the list?
They are also not showing Florida on the list. Florida does not have a state income. Any they do not take ss taxes out of the check because according to the ssa it is not taxable income. The feds do tax the checks though.
I would do that now email write call your state rep’s and ask them why your state isn’t on the list I would think it would be. do it now it’s primary’s . let them know your a registered voter and you want action !!!!!
it should be a no brainier should be required with your enlistment package may make it more tempting. I like to know to it says military retirement, I guess i will hold on line for someone at the IRS to answer
Nevada has no State income tax. But leave it to our idiot demo-rats they will try to put one in. KEEP NEVADA FREE AND RED CONSERVATIVE for the good of all.
Okay the proud Lone Star State of Texas we know you love our Soldiers, Sailors, Airmen and Marines as “we’re proud to be Americans” and have served honorably…Why not Texas as you are the example!
Thanks
Keith A Chatman
There is no state income tax in TX!
Virginia needs to get with the program as well! Hate paying taxes on retirement especially military.
Amen! Couldn’t have said any Better! Thank you!
Yes Virginia get in step!!!!!!!
Agree Veterans should not be taxed
Great, so everyone else in the state, especially middle class, has to pick up the slack now. The middle class always gets screwed.
Willfully ignorant
now Joe don’t you think us veterans earned it!
I didn’t say we didn’t earn it. But I am certainly concerned with others who have earned it other ways and are getting screwed by people who keep taking, taking, and taking.
There are people that will scream that there are too many free services available to everyone but have no problem taking it for themselves.
maybe if your state wasn’t blowing money on welfare and expenses who never get off the couch and earn a living themselves, then the non veterans wouldn’t have to ” take up the slack”.. If you didn’t serve, what gives you the right to complain about the benefits veterans get for putting their lives on the line, so that you have the freedoms, that so many welfare bums in this country abuse the crap out of daily.
Your reply doesn’t make any sense. I live in one of the states that does not tax military pensions. Your argument is that there should be no taxes at all, or taxes only for people who worked. Re-read your comment, it literally does not make any sense.
They don’t understand the bodily sacrifices that it takes to be apart of the military, Get out of the office for one week and go work for the military, training or work. They would quite. You have to me mentally and career driven to make such a sacrifice for your country. And when your body and mind are not letting you complete your mission. It’s time to retire and all hands should be down. And your earned time should be taxed Free. Go to congess and see how many 65-85 have ever done what we have done for 25-30 yrs of our live..
what happened to florida in this tax cut??
Florida and Tennessee are both tax exempt states.
I’m sure there are many other states. But with the
state being tax-exempt, won’t do us any good unless
Federal goes tax-exempt.
Come on Oklahoma get on Board with No Tax on Military Retirement Pay!
I wish Virginia would get on board Z well
wow I would thin Virginia would be #1 then Hawaii two of our biggest naval bases and other forces, there’s something wrong here! get on your phone email write flood them let them know your a registered voter and this is not acceptable, and needs to be a dressed now!!!!!
And I noticed that New Mexico didn’t make the list at all Democrat governor lol
That reply doesn’t make any sense. There are several states on there with Democratic governors that also do not tax military pensions. And there are states on there that switch frequently between Democratic and Republican governors.
The Federal tax on military retirement needs to be abolished.
Agree
California needs to step up too. They have way too many taxes as it is.
Good luck with that thought, Califagornia will cross State lines to get your money. I lived in London for 4 years and Mexico for 20 years with a PO box in Ca. and was taxed on my retirement.
Yes, amen on that.
In all likelihood, I’m willing to bet California will be the last state to not tax military retirement.
Is it federal taxes too please reply
As of now, military retirement pay is fully taxable for purposes of federal income tax. In those states that do collect an income tax, individuals have to pay income tax on any military retirement pay to BOTH the state and the federal government. I am not a tax expert, a CPA, or an attorney. I’m not dispensing legal advice. But I do declare my military retirement pay as income on my federal tax return. My state does not collect an income tax, with one exception and that has to do with some sort of real estate situation. And, something you find out when you get as old as the hills, is that you can also find yourself adding in a significant portion of your SS benefits for the tax year.
Tennessee should join in to help us out.. It should be done in all STATES.
TN doesn’t have a state income tax, so it’s a mute point.
TN has no state income tax.
Agree! Let’s Go Tennessee!
When is this going to happen in all %0 states ? I mean its no more than right to do so. Washington State needs to step up and be the example here !!!
Washington State has no income tax.