For most retirees, retired pay is federal taxable income. VA disability isn't. What your state takes depends on where you live, and most states take nothing from military retired pay at all.
Start with the federal rules, then compare states. Every state also has its own guide with worked examples.
State by state tax guides for all 50 states →
Your rank, years, VA rating and state, worked out after tax.
See my number, freeAbout a minute. No account, nothing saved.
Complete guide to federal and state taxes on military retirement pay in 2026. Learn which income is taxable, which is tax-free (VA disability, CRSC), how 38 states exempt military pensions, and strategies to reduce your tax bill. Includes real examples comparing Texas vs California with dollar-for-dollar savings.
Discover the top 10 states for military retirees ranked by tax benefits, cost of living, and VA healthcare access. Compare Florida, Texas, Tennessee, and more with real dollar savings examples. See which of the 38 tax-free states is right for you.
Georgia's $65,000 military exclusion starts with tax year 2027, not 2026, and Georgia's standard deduction stacks on top of it, so from 2027 a typical military pension owes Georgia nothing. Delaware's cap climbs to $15,000 but adds a domicile test that can cost a retiree over 60 five years of benefit. What each change is worth by rank on what DFAS pays, and the 12 states that still tax a pension at all.
The first tax season under the One Big Beautiful Bill Act just wrapped. Your pension is still fully taxable, but the lower brackets are now permanent, the SALT cap is $40,400 for 2026, and retirees 65+ get a new $6,000 deduction through 2028. Plus the two military-only provisions most coverage misses: your retirement move is still deductible, and the subsidy clawback that can bite anyone who takes a job mid-year.
The TSP now lets you convert Traditional to Roth without leaving the plan. Your BRS match builds a hidden Traditional balance every year. Tax bracket math by rank, the four best conversion windows, in-plan vs. rollover comparison, and 5 costly mistakes to avoid.
Which concurrent receipt program pays more, CRDP or CRSC? A side-by-side comparison with 2026 rates, eligibility requirements, tax implications, real calculations, and step-by-step application guide for Combat-Related Special Compensation.
Starting Jan 28, 2026, TSP allows Roth in-plan conversions. Combined with Combat Zone Tax Exclusion, a BRS member with Traditional money from earlier years can put $82,000 into tax-free accounts in one deployment year, potentially growing to $1.4M+ over 30 years. Complete strategy guide with infographics.
See what you take home and the civilian salary it takes to match it.
See my number, freeAbout a minute. No account, nothing saved.