Updated October 4, 2026. Quick answer: Several states in the table below tax none of a military retiree’s pay, several subtract all of it, and a few allow only a capped subtraction. Each row below links to that state’s own page, which quotes the state’s tax agency, legislature or constitution.
Military retired pay, state by state
| State | How military retired pay is treated | Figure or limit |
|---|---|---|
| Virginia | Partial subtraction | Up to $40,000 per person |
| North Carolina | Deduction | Full amount; 20 years or medical retirement |
| Florida | No income tax | None |
| California | Taxable, partial exclusion | Up to $20,000 per type of payment |
| Georgia | Partial exclusion | Up to $17,500, plus $17,500 with earned income, under 62 |
| Colorado | Partial subtraction | $15,000 under 55; $20,000 or $24,000 at 55 or older |
| Washington | No income tax | None today |
| Texas | No income tax | None |
| Arizona | Subtraction | 100% |
| South Carolina | Deduction | All military retirement income |
| Alabama | Not taxable | Listed as income not reported |
| Tennessee | No income tax | None |
| Ohio | Deduction | No cap printed |
| Pennsylvania | Not taxable | Listed as not taxable |
| New York | Subtraction | No cap printed |
| Maryland | Partial subtraction | $20,000 at 55 or older; $12,500 under 55 |
| Illinois | Subtraction | No cap printed |
| Connecticut | Subtraction | Full amount; no cap printed |
| Idaho | Partial deduction | $48,216 single, $72,324 joint for 2025 |
| Indiana | Deduction | Entire amount for 2022 and later |
| Kansas | Subtraction | No cap printed |
| Kentucky | Partial exclusion | Up to $31,110 |
| Louisiana | Exclusion | Federal retirement benefits; no cap printed |
| Massachusetts | Exclusion | Full amount; no cap printed |
| Michigan | Exempt | Full amount; no cap printed |
| Minnesota | Subtraction with a condition | No cap printed; not with the Credit for Past Military Service |
| Missouri | Subtraction | Full amount; no cap printed |
| Nebraska | Exclusion | 100% |
| New Jersey | Not taxable | Left off the return |
| New Mexico | Partial exemption | $30,000 per qualifying retiree |
| Oklahoma | Exclusion | 100% |
| Oregon | Taxed, with a service-date subtraction | Depends on service before October 1, 1991 |
| Utah | Credit | The state rate times the pay; 4.45% from 2026 |
| Wisconsin | Exempt | Full amount; no cap printed |
| Arkansas | Exempt | Full; no cap printed; not with the $6,000 retirement exemption |
| Delaware | Partial exclusion | $12,500 or the pension, whichever is less, under 60 |
| District of Columbia | Taxed on the statute read | The $3,000 exclusion ended before 2015 |
| Hawaii | Not taxed | Public-system military pension; no cap printed |
| Iowa | Exempt | Full amount included in federal taxable income |
| Maine | Exempt | Full amount; no cap printed |
| Mississippi | Exempt | Federal retirement systems in total; military pay not named |
| Montana | Partial exemption | 50% of the pay, limited by Montana earned income |
| Nevada | No income tax | Nothing to subtract |
| New Hampshire | Income tax chapter repealed | RSA Chapter 77 repealed from 2025 |
| North Dakota | Subtraction | Full amount; no cap printed |
| Rhode Island | Exempt | Full amount; no income or age requirement |
| South Dakota | No income tax | Nothing to subtract |
| Vermont | Partial exemption | Full at $125,000 AGI or less; none at $175,000 or more |
| West Virginia | Subtraction | Full amount; no cap printed |
| Wyoming | No income tax | Nothing to subtract |
How to read the table
A cap means the part of retired pay above it is taxed on the state’s regular schedule. An age rule uses the age on the last day of the tax year. Every figure comes from the state’s own document, linked from that state’s page.
Related: the military retirement calculator.
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Sources
- 2025 Form 760 Resident Individual Income Tax Booklet Instructions: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf
- G.S. 105-153.5 Modifications to adjusted gross income: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.5.html
- G.S. 105-153.7 Individual income tax imposed: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.7.html
- Florida Constitution Article VII Finance and Taxation: http://www.leg.state.fl.us/statutes/index.cfm?Mode=Constitution&Submenu=3&Tab=statutes
- Florida Statutes 220.02 Legislative intent: http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0220/Sections/0220.02.html
- 2025 FTB Publication 1032, Tax Information for Military Personnel: https://www.ftb.ca.gov/forms/2025/2025-1032-publication.pdf
- 2025 Instructions for Schedule CA (540): https://www.ftb.ca.gov/forms/2025/2025-540-ca-instructions.html
- 2025 IT-511 Individual Income Tax Instruction Booklet: https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download
- Retirement Income Exclusion: https://dor.georgia.gov/retirement-income-exclusion
- Income Tax Topics: Military Servicemembers (Revised February 2025): https://tax.colorado.gov/sites/tax/files/documents/ITT_Military_Servicemembers_Feb_2025.pdf
- Retired Servicemembers: https://tax.colorado.gov/retired-servicemembers
- Income Tax Topics: Social Security, Pensions and Annuities: https://tax.colorado.gov/income-tax-topics-social-security-pensions-and-annuities
- Income tax: https://dor.wa.gov/taxes-rates/income-tax
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- H.J.R. 38 enrolled text (adds Art. VIII Sec. 24-a): https://capitol.texas.gov/tlodocs/86R/billtext/pdf/HJ00038F.pdf
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- 2025 Form 140 Resident Personal Income Tax Instructions: https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140i.pdf
- A.R.S. 43-1022 Subtractions from Arizona gross income: https://www.azleg.gov/ars/43/01022.htm
- 2025 SC1040 Individual Income Tax Instructions: https://dor.sc.gov/sites/dor/files/forms/SC1040Instr_2025.pdf
- 2025 Form 40 Booklet (Long Return, Residents and Part-Year Residents): https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf
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- 2025 Instructions for Form IT-201: https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf
- 2025 State & Local Tax Forms & Instructions (Instruction 13, code u): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf
- Tax-General Section 10-207 (subtraction modifications), Annotated Code of Maryland: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg§ion=10-207&enactments=false
- Publication 120, Retirement Income (R-12/25): https://tax.illinois.gov/content/dam/soi/en/web/tax/research/publications/pubs/documents/pub-120.pdf
- 2025 Form IL-1040 Instructions: https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/incometax/documents/currentyear/individual/il-1040-instr.pdf
- Form CT-1040 Connecticut Resident Income Tax Return Instructions 2025: https://portal.ct.gov/-/media/drs/forms/2025/income/2025-ct-1040-instructions_1225.pdf
- Form 39R Resident Supplemental Schedule 2025 and Instructions (EIN00046 2025): https://tax.idaho.gov/wp-content/uploads/forms/EFO00088/EFO00088_03-02-2026.pdf
- Idaho Code section 63-3022A, Deduction of certain retirement benefits: https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/SECT63-3022A
- Individual Income Tax Rate Schedule: https://tax.idaho.gov/taxes/income-tax/individual-income/individual-income-tax-rate-schedule/
- 2025 IT-40 Full-Year Resident Individual Income Tax Booklet: https://forms.in.gov/Download.aspx?id=16915
- K.S.A. 79-32,117 Kansas adjusted gross income modifications: https://www.ksrevisor.gov/statutes/chapters/ch79/079_032_0117.html
- Kansas Income Tax Instructions for Armed Forces Personnel (IA-36): https://www.ksrevenue.gov/pdf/ia-36.pdf
- 2025 Kansas Individual Estimated Tax (K-40ES): https://www.ksrevenue.gov/pdf/k-40es25.pdf
- Military Exemptions (Retirement Income Exclusion): https://revenue.ky.gov/Individual/Pages/Military-Exemptions.aspx
- Schedule P Kentucky Pension Income Exclusion (2023): https://revenue.ky.gov/Forms/Schedule%20P%202023.pdf
- KRS 141.020 Levy of income tax on individuals: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56339
- Is there a list of retirement system benefits that may be excluded from Louisiana income tax?: https://revenue.la.gov/tax-education-and-faqs/faqs/individual-income-tax/is-there-a-list-of-retirement-system-benefits-that-may-be-excluded-from-louisiana-income-tax
- La. R.S. 47:44.2 Federal social security benefits; federal and railroad retirement income exempt from taxation: https://www.legis.la.gov/legis/Law.aspx?d=102134
- Revenue Information Bulletin No. 25-012, Louisiana Individual Income Tax Reform: https://dam.ldr.la.gov/lawspolicies/RIB-25-012-Louisiana-Individual-Income-Tax-Reform-1.pdf
- M.G.L. c. 62, section 2 (Massachusetts gross income): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section2
- M.G.L. c. 62, section 4 (Rates of taxation): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section4
- Are military retirement benefits exempt from Michigan individual income tax?: https://www.michigan.gov/taxes/questions/iit/accordion/military/are-military-retirement-benefits-exempt-from-michigan-individual-income-tax
- 2025 MI-1040 Individual Income Tax Forms and Instructions: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2025/MI-1040-Book.pdf
- Military Pension Subtraction: https://www.revenue.state.mn.us/military-pension-subtraction
- 2025 Schedule M1M, Income Additions and Subtractions: https://www.revenue.state.mn.us/sites/default/files/2026-07/m1m-25.pdf
- Form MO-1040 Individual Income Tax Long Form 2025 and Instructions: https://dor.mo.gov/forms/MO-1040%20Instructions_2025.pdf
- Pension FAQs: https://dor.mo.gov/faq/taxation/individual/pension.html
- 2025 Nebraska Individual Income Tax and Amended Return Booklet: https://revenue.nebraska.gov/sites/default/files/doc/tax-forms/2025/f_Individual_Income_Tax_Booklet.pdf
- Nebraska Income Tax for U.S. Servicemembers Information Guide: https://revenue.nebraska.gov/sites/default/files/doc/info/8-364.pdf
- 2025 NJ-1040 New Jersey Resident Return instruction booklet: https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf
- Instructions for 2025 PIT-ADJ: https://realfile.tax.newmexico.gov/2025pit-adj-ins.pdf
- 2025 Oklahoma Resident Individual Income Tax Forms and Instructions (Form 511 packet): https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/511-Pkt.pdf
- Publication OR-17, Oregon Individual Income Tax Guide (2025, Rev. 01-29-26): https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf
- Utah Code 59-10-1043 Nonrefundable tax credit for military retirement: https://le.utah.gov/xcode/Title59/Chapter10/C59-10-S1043_2022032320220323.html
- Utah Code 59-10-104 Tax basis: Tax rate: Exemption: https://le.utah.gov/xcode/Title59/Chapter10/C59-10-S104_2026050620260506.html
- Wisconsin Tax Information for Military Personnel and Veterans, Publication 128 (1/26): https://www.revenue.wi.gov/DOR%20Publications/pb128.pdf
- 2025 Form 1 Instructions: https://www.revenue.wi.gov/TaxForms2025/2025-Form1-Inst.pdf
- Act 141 of 2017 Regular Session (House Bill 1162, as engrossed): https://www.arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2017R%2FPublic%2F&file=141.pdf&ddBienniumSession=2017%2F2017R
- Delaware Individual Income Tax Return Resident Instructions 2025 (PIT-RES): https://revenuefiles.delaware.gov/2025/PITForms_Instructions/Instructions/PIT-RES_Instructions_2025-01.pdf
- D.C. Code section 47-1803.02, Gross income defined (exclusions): https://code.dccouncil.gov/us/dc/council/code/sections/47-1803.02
- Instructions for Form N-11 (Rev 2025): https://files.hawaii.gov/tax/forms/current/n11ins.pdf
- 701-302.80(422) Exemption for military retirement pay: https://www.legis.iowa.gov/docs/iac/rule/701.302.80.pdf
- IA 1040 Schedule 1 expanded instructions: https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax/1040-expanded-instructions/ia-1040-schedule-1
- 2025 Maine Income Tax Form 1040ME General Instructions: https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/25_1040me_gen_instr_w_cover_pg.pdf
- 2025 Form 80-100 Resident, Non-Resident and Part-Year Resident Individual Income Tax Instructions: https://www.dor.ms.gov/sites/default/files/tax-forms/individual/80100251%202.pdf
- Individual Income Tax Frequently Asked Questions: https://www.dor.ms.gov/individual/individual-income-tax-frequently-asked-questions
- 2025 Montana Working Military Retirement and Survivor Benefit Exemption (Form WMRE) and Instructions: https://revenuefiles.mt.gov/files/Forms/Montana-Working-Military-Retirement-and-Survivor-Benefit-Exemption.pdf
- 2025 Montana Individual Income Tax Return Form 2 Instructions: https://revenuefiles.mt.gov/files/Forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2025_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf
- Income Tax in Nevada: https://tax.nv.gov/about-nevada-department-of-taxation/income-tax-in-nevada
- RSA Chapter 77 Taxation of Incomes (repealed): https://gc.nh.gov/rsa/html/V/77/77-mrg.htm
- Guideline: Income Tax: Military Service Members: https://www.tax.nd.gov/sites/www/files/documents/guidelines/individual/military-service-members.pdf
- North Dakota Century Code Chapter 57-38 Income Tax: https://ndlegis.gov/cencode/t57c38.pdf
- Rhode Island Retirement Income Tax Guide: Modifications for Retirement Income (Publication 2026-01, Tax Year 2025): https://tax.ri.gov/sites/g/files/xkgbur541/files/2026-02/PUB_2026-01_Retirement_Income_Guide.pdf
- RI-1040 Resident Instructions (Tax Year 2025, draft 11/06/2025): https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-11/2025%201040R%20Instructions_d.pdf
- Taxes (Individuals): https://dor.sd.gov/individuals/taxes/
- 2025 Schedule IN-112 Instructions: https://tax.vermont.gov/sites/tax/files/documents/IN-112-Instr-2025.pdf
- West Virginia Code 11-21-12: https://code.wvlegislature.gov/pdf/11-21-12/
- IT-140 Schedule M 2025: https://tax.wv.gov/Documents/PIT/2025/it140.Schedule-M.2025.pdf
- About Wyoming: https://www.wyo.gov/about-wyoming
- Wyoming Statutory Tax Structure: Title 39 (Wyoming Taxation Rates and Collections): https://wyoleg.gov/InterimCommittee/2025/03-202506032-01WyomingtaxstructureratesandcollectionsJune32025.pdf
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.