What are the tax implications for military pensions in your State? Please start post with State name

MSgt Brian Welch — Thu, 28 May 2015 18:43:31 -0400

Maine/New Jersey, I've lived in 2 States as a retiree. In New Jersey a military pension is 100% State Tax free, but you have the burden of high property tax (highest in the nation last I checked). In Maine you pay State Tax on the pension amount over the first $10K but at the age of 62 combat veterans get a 100% property tax exemption and prior to age 62 disabled vets get a property tax exemption.

How are military pension treated in your home State? What is your State sales tax rate? What would you estimate the property tax rate for a $100K home? Does your state have property tax on vehicles each year?

Response by MSG Brad Sand made May 28 at 2015 6:49 PM

MSG Brad Sand — Thu, 28 May 2015 18:49:12 -0400

Iowa, starting last year, no state tax on military pensions. Saved me a couple thousand...of course now I have to move.

Response by Capt Private RallyPoint Member made May 28 at 2015 7:02 PM

Capt Private RallyPoint Member — Thu, 28 May 2015 19:02:59 -0400

Iowa - he reasons I moved across the river in December. military retired pay is mot taxed. One of the reasons I moved across the river last December.

Response by COL Vincent Stoneking made May 28 at 2015 7:45 PM

COL Vincent Stoneking — Thu, 28 May 2015 19:45:33 -0400

Washington - No state income tax, period.

Response by COL Charles Williams made May 28 at 2015 7:57 PM

COL Charles Williams — Thu, 28 May 2015 19:57:04 -0400

Great Discussion!!!! And more useful than my silly posts.

Missouri, started to eliminate tax on military retirement several years ago. This is very veteran friendly state. By 1 Jan 16, it will be tax free.

Military Retirement Income Exemption: For tax year beginning January 1, 2013, Missouri allows 60% of military pension income to be exempt from state taxes. This tax deduction will increase 15% annually until January 1, 2016, when all military pension income will be tax-free.

http://myarmybenefits.us.army.mil/Home/Benefit_Library/State__Territory_Benefits/Missouri.html

Response by Lt Col Jim Coe made May 28 at 2015 8:06 PM

Lt Col Jim Coe — Thu, 28 May 2015 20:06:09 -0400

Illinois. Federal retirement pay is not subject to income tax. Other income taxed at 5%. State is heavily in debt and over 6 months behind on paying its bills. Also has the largest number of elected officials behind bars of the 50 states.

Response by COL Jean (John) F. B. made May 29 at 2015 10:06 AM

COL Jean (John) F. B. — Fri, 29 May 2015 10:06:11 -0400

Good article that covers this question...

States That Don’t Tax Military Retirement Pay | RapidTax

Military veterans should consider retiring to one of these states if they want to lighten their tax burden

Response by CPT Bruce Rodgers made May 29 at 2015 8:58 PM

CPT Bruce Rodgers — Fri, 29 May 2015 20:58:49 -0400

Texas no state income taxes

Response by PO1 Scott Cottrell made Aug 11 at 2015 11:16 PM

PO1 Scott Cottrell — Tue, 11 Aug 2015 23:16:08 -0400

I retired out of Florida (no state income tax), but have been working as an Army contractor overseas ever since. So, I only pay Federal income tax on my retirement pay and stocks.

Response by SSgt Alex Robinson made Aug 11 at 2015 11:34 PM

SSgt Alex Robinson — Tue, 11 Aug 2015 23:34:14 -0400

Frankly a veteran's pension should be tax free.

Response by Maj William Hefty made Aug 12 at 2015 11:33 AM

Maj William Hefty — Wed, 12 Aug 2015 11:33:40 -0400

South Carolina: No tax on first $3000.00 taxable income....its not 3000 of income but no tax until you surpass the $3000 owed to the state mark, and then it starts counting. With a VA rating of P&T though that is totally waived. I will update as I learn more, I just retired in Dec and havent yet fully figured out the tax implications.

Response by LCDR Private RallyPoint Member made Nov 16 at 2016 6:21 PM

LCDR Private RallyPoint Member — Wed, 16 Nov 2016 18:21:39 -0500

Ohio. When I first retired from the Navy, I was hired right into a health care administration position at a civilian hospital. My retired pay was taxed by the state at that time, however in about 2005/6, military retired pay was exempted from state income taxes. It was like getting a huge income boost. Now that I'm fully retired, I especially need this exemption on retired pay.

Response by A1C Donna Mars made Apr 7 at 2022 1:42 AM

A1C Donna Mars — Thu, 07 Apr 2022 01:42:53 -0400

Tx has no property tax up to 10000 for 100% disabled vets. Tx does not have a state tax.