States That Don'T Tax Military Retirement
Understanding the Basics of Military Retirement
If you are a member of the U.S. military, it is likely that you are aware that you can receive a retirement benefit after you have served your country for 20 years or more. This retirement benefit is known as a military pension. It is essentially a lifetime annuity that you can use to supplement your income once you are no longer on active duty. However, one of the questions that many service members have is, “are there any states that don’t tax military retirement?” The answer is yes, there are.
The taxability of military pension income is determined by the state in which you live, not the state in which you were discharged from the military. So, if you are a retired service member and you are considering relocating to another state, it is important to understand the tax laws of the state you are considering moving to. This information is especially important if you are trying to determine which states don’t tax military retirement.
States That Don't Tax Military Retirement
The following is a list of states that don’t tax military retirement income. Note that this list is subject to change, as tax laws are always subject to change.
Alaska – Alaska does not have a state income tax, so military retirement income is not taxed.
Florida – Florida does not tax military retirement income.
Illinois – Illinois does not tax military retirement income.
Mississippi – Mississippi does not tax military retirement income.
Nevada – Nevada does not tax military retirement income.
New Hampshire – New Hampshire does not tax military retirement income.
South Dakota – South Dakota does not tax military retirement income.
Tennessee – Tennessee does not tax military retirement income.
Texas – Texas does not tax military retirement income.
Washington – Washington does not tax military retirement income.
Wyoming – Wyoming does not tax military retirement income.
Conclusion
If you are a retired service member, it is important to understand the tax laws of the state in which you live. Fortunately, there are several states that don’t tax military retirement income. This means that you can enjoy your retirement years without having to worry about paying taxes on your pension income. Be sure to research the tax laws of any state you are considering moving to before you make the move.