Posted on May 28, 2015

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

7.11K

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?

Posted in these groups: Ret

Retired

Pension

Taxes

Edited 9 y ago

Posted 9 y ago

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Responses: 12

SSgt Alex Robinson

Posted >1 y ago

Frankly a veteran's pension should be tax free.

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MSgt Brian Welch

>1 y

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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COL Vincent Stoneking

Posted 9 y ago

Washington - No state income tax, period.

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MSgt Brian Welch

9 y

Sir, where do they get their tax revenue? High sales tax rate? Vehicle property tax?

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COL Vincent Stoneking

9 y

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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