States that Don't Tax Military Retirement 2026

States That Do Not Tax Military Retirement Pay

Some states do not tax military retirement pay at all. This includes states with no income tax as well as those that specifically exempt military pension income under state law. In both cases, retirees are not required to pay state income taxes on their military retirement benefits.

States with no state income tax include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Other states that exempt military retirement pay from state income taxes include Alabama, Arizona, Arkansas, Connecticut, Hawaii, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Utah, and Wisconsin.

States With No State Income Tax

Some states do not impose a state income tax at all. As a result, military retirement pay is not taxed in these jurisdictions.

States with no state income tax include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. In these states, the absence of an income tax applies broadly to most forms of income, including military pensions.

States That Fully Exempt Military Retirement Pay

Some states impose a state income tax but fully exempt military retirement pay from taxation. In these jurisdictions, retirees do not pay state income taxes on their military pensions, even though other types of income may be taxed.

States that fully exempt military retirement pay include Alabama, Arizona, Arkansas, Connecticut, Hawaii, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Utah, and Wisconsin. These exemptions generally apply to qualified military retirement income, though specific rules may vary by state.

States That Partially Tax Military Retirement Pay

Some states partially tax military retirement pay, offering exemptions based on factors such as age, income level, or years of service. These states typically allow a portion of military pension income to be excluded from taxation while taxing the remainder.

States with partial taxation include Colorado, Delaware, the District of Columbia, Georgia, Idaho, Kentucky, Maryland, New Mexico, Oklahoma, Oregon, South Carolina, and West Virginia. In these states, exemptions may vary widely—for example, some offer fixed-dollar exclusions, others apply age-based thresholds, and some distinguish between service periods or income levels when determining how much retirement pay is taxable.

States That Fully Tax Military Retirement Pay

In some states, military retirement pay is treated as ordinary income and is fully subject to state income tax. These states do not provide specific exemptions or exclusions for military pensions beyond general tax provisions.

States that fully tax military retirement pay include California, Montana, Rhode Island, Vermont, and Virginia. In these jurisdictions, retired service members must include their military pension income when calculating state income taxes, similar to other forms of retirement income.