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Military.net

Veterans in This State No Longer Have to Pay Tax on Military Retirement Pay

March 22, 2021

Veterans living in the state of Utah will no longer be taxed on their retirement pay.

A new bill was signed into law by Governor Spencer J. Cox on March 11, 2021, which ends taxation on military retirement pay.

The law will provide an average savings of $1,315 per year for military retirees and their survivors.

The changes will take effect for the 2021 tax year.

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Currently 21 other states fully exempt military retirement pay from state taxes.

The new law exempts military retirement pay as well as Survivor Benefit Plan (SBP) payments that are paid to some surviving dependents of military retirees.

The change, which is effective for the tax year beginning Jan. 1, 2021, also exempts some Social Security payments from income tax. However, military retirees can claim only one new income exemption per tax return.

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If veterans have multiple sources of income, they will still be able to exempt their military retirement income when filing their taxes.

Any payments received by reserve, active duty and National Guard will remain taxable for those living in Utah.

There are, however, certain exceptions for those serving in a designated combat zone.

Senate Bill 11 was designed to help Utah veterans by eliminating state income tax on military retirement pay.

Mario Reeve, a retiree who served with the Utah Air National Guard, says not having to pay taxes on retirement pay will help veterans like him living in Utah.

“I applaud the Utah Legislature for recognizing the service of so many who have served,” Reeve stated. “This is a great way to show our veterans that we value the many benefits that they provide to our state.”

Reader Interactions

Comments

  1. Robert Carinio says

    March 23, 2021 at 2:24 pm

    I think this should be all states it’s only fair for all those who served like myself that live in California!!!!!!

  2. William P Talton(Retired MSG) says

    March 23, 2021 at 12:02 pm

    Thank you Govern of Utah for carrying and seeing the sacrifice of the American Soldiers this is what should be happen across every STATE,Again THANK YOU FOR YOUR SUPPORT GOD BLESS.

  3. robert wilson says

    March 23, 2021 at 9:25 am

    Thanks Govern of Utah for carrying and seeing the sacrifice of the American soldier
    Thiis is what should be happen across every State.

  4. Mark Benjamin Oliver says

    March 23, 2021 at 7:04 am

    There was a time when a lot of vets thought our country and our government did not care or had forgotten about us I feel this no longer
    thanks to all who have served and our serving
    Master chef petty officer ret.

  5. Tony says

    March 23, 2021 at 12:08 am

    This website shows all the states and what and which get taxed

    https://militarybenefits.info/states-that-do-dont-tax-military-retirement-pay/

  6. CW4 Thomas E. Harn (ret) says

    March 22, 2021 at 12:41 pm

    Can you list the states with NO TAXES on Military retirees?

  7. roger says

    March 22, 2021 at 12:10 pm

    Texas doesn’t tax military pay either. it’s nice to know you have that little extra each month to get things you need or for emergencies.

  8. Mike says

    March 22, 2021 at 10:25 am

    In the State of VA. There will never be No Taxes for Military Retirees. Here it is all about getting all you can from everyone you can and nothing else.

  9. James L Stephens says

    March 22, 2021 at 10:06 am

    This shows our military veterans that the people and government in a state show their appreciation
    for the service of our men and women who have served. And it also helps veterans to establish a
    residential life in Utah. I am well aware that Utah has always been a state that respects all of the veteran residents. I use to handle recruiting in the 70’s and the people were wonderful and I still have
    friends in the state. It makes me stop and think about a possible residence if I were to make a change
    of states. Thank you to the people of Utah and the government.

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