Posted on May 28, 2015
What are the tax implications for military pensions in your State? Please start post with State name
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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?
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?
Retired
Pension
Taxes
Edited 9 y ago
Posted 9 y ago
Responses: 12
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MSgt Brian Welch
I couldn't agree more. I once read an article that said most in the military don't start thinking about the terms of their pension until after the ten-year point. That opens the door for Congress to do what they can to widdle down the burden of the pension by taking it back.
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MSgt Brian Welch
Sir, where do they get their tax revenue? High sales tax rate? Vehicle property tax?
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COL Vincent Stoneking
Sales tax (don't know if it's "high", around 8.9% where I'm at), real property tax, B&O tax, etc. Vehicles aren't taxed annually, though they are on sale. I haven't paid much attention, but I believe the bulk is sales tax and property tax.
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COL Vincent Stoneking
Business & Occupation.
http://dor.wa.gov/content/FindTaxesAndRates/BAndOTax/
http://dor.wa.gov/content/FindTaxesAndRates/BAndOTax/
The state B&O tax is a gross receipts tax. It is measured on the value of products, gross proceeds of sale, or gross income of the business.
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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.
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MSgt Brian Welch
Thanks, that's exactly what I was hoping for was all of the tax implications. Congrats on your retirement. I was stationed in Charleston for 5 years; loved it. Property tax was very low there, I paid a little over $400 a year on a 1500 SF house on 3/4 acre.
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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.
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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
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
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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.
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Tx has no property tax up to 10000 for 100% disabled vets. Tx does not have a state tax.
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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.
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