Military retirees living in Arizona and Nebraska have received good news about their tax bills. In both the states, legislation has been signed that totally exempts military retirement pay from state income tax.
In Arizona the exemption officially went into effect on July 1, 2021, and will be retroactive to January 1, 2021.
For military retirees living in Nebraska, they will receive a total tax exemption beginning in 2022.
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The push to obtain the tax breaks for military retirees has been a long process, and was spearheaded by the Military Officers Association of America (MOAA).
MOAA members put pressure on lawmakers and the Governor to discuss the legislation until it was eventually passed.
The state of Arizona historically offered partial exemptions to military retirees and first responders, but it wasn’t until now that they will be offering a full exemption.
Deciding to not tax military retirement pay is a big success that will surely drive more retirees to states for second careers and eventually retirement, said Lt. Gen. John Regni, USAF (Ret), a member of MOAA’s board of directors.
Here’s a list of other states who do not currently tax retired military pay:
- Alabama
- Kansas
- Minnesota
- North Dakota
- Arkansas
- Louisiana
- Mississippi
- Ohio
- Connecticut
- Maine
- Missouri
- Pennsylvania
- Hawaii
- Massachusetts
- New Jersey
- Utah
- Illinois
- Michigan
- New York
- West Virginia
- Iowa
- Wisconsin
Update: For additional states, see these 5 additional states that added tax free retirement pay on USMilitary.org
Military retirement pay should be exempt from Federal and State taxes.
I agree, how about Florida. Everything is so expensive here we could sure use that little bit of a break . If these other states can do it the rest should also.
All States should have Military pay retirement exemptions from all Taxes
I do agree.
agree
California’s tax is rediculous!
And every year there’s a surplus, and do they do everything with it, except help retirees.
About California?
ll states should be tax free for any Veteran. Period!!
Nevada does not have a tax on income thank God…The dummy-crats lie, steal and cheat to get you to vote for them. Don’t fall for their misconception, stick it to them where it hurts the most, at the polls, take back the power…. vote republican
Vets have laid down their lives to protect this great country. The Federal Government should follow suit and not tax our income as well.
Why vote Republican, we just had 4 yrs and that administration did not give you this tax break. What they did give us was 500+k of deaths, much of which was preventable not to mention the insurrection
Vote Republican…No Thanks.
AZ flipped to Blue and I helped, got my exemption too
Oklahoma has been voting on it. Is it exempt now?
Indiana is currently phasing it out. Military retirement will be tax exempt in 2022
Lets put some pressure on California legislators. There are tons of retired vets who after retiring are struggling to make ends meet due to inflation, increasing cost of living, bogus state fees, and on top of all that expexted to pay state tax. As a nation we need to do a better job of taking care of care of our veterans regardless of which state our veterans decide to reside. Bravo Zulu for.those states that are doing right by their veterans, lets continue to press forward until every state does right by their veterans who voluntarly volunteered to defend our freedom and our way of life.
Michigan my state of birth and who drafted me into the Vietnam War and Virginia where I now reside need to look at their military retirees. God Bless our Troops{
This is a incomplete list from what I see
WHAT ARE NORTH CAROLINA CONDITIONS????
don’t know but they did not make the list, someone needs to get on the ball and make it happen, what is the first step?
HEY VETERANS! Have you noticed the states that are listed? ALL DEMOCRATIC STATES. THE REASON? YOU THE VETERANS, ON ELECTION DAY, NO MATTER, THEY WANT YOU TO VOTE DEMOCRATIC! IF YOU AS A VETERAN ARE SHIT OUT OF LUCK IF YOU LIVE IN A RED STATE! IT SOMEWHAT CARRIES THE CONTINUED DIVISION OF OUR COUNTRY, THE DEMOC-RATS ARE GOOD AT THIS, ESPECIALLY IF IT IS DONE IN THE MIDDLE OF THE NIGHT! AS FAR YOU VETS IN THE BLUE STATES, GOD LOVE YA! TAKE ADVANTAGE OF THE DEMS OFFER, THEN REMEMBER TO VOTE ON ELECTION DAY, THEY GAVE A LITTLE, THEN TOOK A LOT. GAS, FOOD, COMMON NECESSITIES, EVERYTHING, INFLATION IN EVERY STATE. AND AS FAR ANYONE WHO HAS NOT SERVED, GO TO THE POLLS ON ELECTION DAY AND STICK IT TO THEM, ESPECIALLY WHERE IT HURTS! USAF
Um. Aren’t most of these State Houses Rep ran. It shouldn’t matter who approved it it should be every State for their Vets.
What? That list has Red states listed as well. Alabama, Arkansas, Miss, Missouri.
California is right with you!!!
South Carolina nerds tax exemption please 🙏 and
Good old republican State of South Dakota really show’s how the love their Military retired personnel.
Georgia is always last in every thing.
What about the retired veterans in GEORGIA? When will we get in on this?
I agree Georgia is always late taking care of their veterans .
i don’t live in GA currently but was born and raised there. My family still lives there and I totally agree with your statement. GA has numerous USAF, USMC &NAVAL bases as well as ARMY posts. i knew several Military members who made the ultimate sacrifice. Come on GA show some love and surprise us all
What about South Carolina? There are a Ton of retired veterans ( who Vote ) making many contributions to the state in a variety of ways, seems like this state should be on the list.
Please give SC Military Retired Veterans a break on State Taxes. Thank You
Is this Tax Break also for VA Disability Checks??
We are not taxed on military disability money.
North Carolina also exempts military retirement pay but there are two qualifying conditions.
Don
what are they?
Virginia needs to get with the tax-free program!!
Absolutely!
Yes!
What about Tennessee????
So does Arkansas
I’m still livid that Kentucky, with TWO Army bases, finally got a GOP house and senate and they immediately reduced the threshold for taxing military retired pay from exempting the first $41k to the first $31k. A friend who is a state rep (d) said they were going to reverse that for military retires but 2-3 years later nothing has happened.
No evidence that I can see of MOAA doing anything for Kentucky retirees. Someone please prove me wrong.
I thought Texas and Florida would be on this list too?
Steve
Tennessee also. Likely not listed because they don’t have any state income tax at all. Judging.
Florida does not have a state tax that’s why there not on that list
There is no income tax period in TX and Florida.
I agree with you. Veteran taxes are been taxed, especially mine and I’m tired of whomever listed these states, must not care about us Texan Veterans. Let’s voice out my friends.
Texas isn’t on the List because you don’t pay State taxes. Most of the States that don’t have a State Tax won’t be on there. Texas is one of the most Veteran Friendly States. If you joined the Military from Texas, you are eligible for the Hazelwood Act and can save your GI for your kids. It also pays for Registration and Drivers License on one vehicle if your 30% or more disabled. Just need to get a form from your County VSO. Same for Property Taxes, you only have to be 30% to be eligible for discounted Property Taxes and per you Percentage is your discount. If your 70% but get TDI where they lay you 100% your entitled too a 100% exemption. Every County has a VSO. You can also get a free state park pass for just being a Veteran. Lot of businesses give discounts too.
Texas done not have a state tax therefore no need. Also Texas veterans that are 100% VA disabled are exempt for property taxes
There’s a website
VA benefits by state
Google that👆🏻