Updated October 4, 2026. Quick answer: No. Article VIII, section 24-a of the Texas Constitution says the “legislature may not impose a tax on the net incomes of individuals”, so Texas does not tax military retired pay.
How Texas treats military retired pay
| Item | What the documents say |
|---|---|
| Treatment | No state tax on the net income of individuals, so none on military retired pay |
| Constitution | Article VIII, section 24-a, adopted by voters on November 5, 2019 (Proposition 4) |
A $30,000 example
A retiree with $30,000 of military retired pay owes Texas $0 of income tax on it.
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What changes in 2026
No 2026 change is printed in the documents read.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Publication 3, Armed Forces’ Tax Guide.
Related: whether Texas taxes pensions, how Texas taxes retirement income, military retirement pay by state, and the military retirement calculator.
Sources
- Constitutional amendment election details, H.J.R. 38 (86th Legislature): https://lrl.texas.gov/legis/billsearch/amendmentDetails.cfm?amendmentID=693&legSession=86-0&billTypedetail=HJR&billNumberDetail=38
- H.J.R. 38 enrolled text (adds Art. VIII Sec. 24-a): https://capitol.texas.gov/tlodocs/86R/billtext/pdf/HJ00038F.pdf
- Starting a New Business, Fiscal Notes: https://comptroller.texas.gov/economy/fiscal-notes/archive/2016/february/starting.php
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.