State-by-State Military Retirement Tax Guide
Where you retire can save you thousands of dollars per year. Compare military retirement taxes, VA benefits, property tax exemptions, and cost of living across all states.
💡 Key Insights
🚫 No State Income Tax (9 states):
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
💰 Full Exemption for Military Retirement:
14 states don't tax military retirement at all (including the 9 above plus AL, HI, IL, KS, MS)
📊 Partial Exemption:
Many states offer exemptions up to $6,000-$75,000 depending on age and income
🏠 Property Tax Exemptions:
Most states offer additional property tax breaks for disabled veterans
🗺️ Jump to Any State Guide
Select a state to view detailed tax information, military bases, and cost of living
Featured State Guides
Detailed guides with 2026 tax data, cost of living, military bases, and VA facilities.
⭐ Texas
NO State Income Tax
- ✓ Zero state income tax on all income
- ✓ Property tax exemptions for disabled veterans ($5K-$12K+)
- ✓ Cost of living 8% below national average
- ✓ Strong military community and job market
Annual Savings: $2,100+ vs high-tax states →
🌴 Florida
NO State Income Tax
- ✓ Zero state income tax on all income
- ✓ Property tax exemptions up to 100% for disabled vets
- ✓ Cost of living at national average
- ✓ Warm weather year-round, no estate tax
1.5+ million veterans call Florida home →
☀️ California
Partial Exemption ($137,500)
- ✓ First $137,500 of military retirement exempt (2026)
- ✓ Complex phase-out rules for high earners
- ✓ Cost of living 38% above national average
- ✓ Excellent weather, diverse job opportunities
Best for high earners under exemption limit →
🌺 Hawaii
Partial Exemption (Age-Based)
- ✓ $40K exempt (age 55-64), $75K exempt (age 65+)
- ✓ Highest cost of living in US (84% above average)
- ✓ Strong military community and infrastructure
- ✓ Unique island lifestyle, year-round paradise
Best for those with modest retirement income →
🏛️ Virginia
Full Exemption (Age 55+)
- ✓ 100% tax-free retirement pay for age 55+
- ✓ Up to $20,000 exemption under age 55
- ✓ Pentagon, Norfolk Naval Base, Fort Belvoir
- ✓ Cost of living 4% above national average
Home to 730,000+ veterans →
🌲 North Carolina
Up to $65,790 Exemption
- ✓ Up to $65,790 military retirement exempt (2026)
- ✓ Fort Liberty, Camp Lejeune, Cherry Point MCAS
- ✓ Cost of living 9% below national average
- ✓ Mountains AND beaches, four seasons
Affordable East Coast living →
🍑 Georgia
Up to $105,000 Exemption (65+)
- ✓ Up to $105,000 retirement exempt (age 65+)
- ✓ Fort Moore, Fort Stewart, Robins AFB, Kings Bay
- ✓ Cost of living 10% below national average
- ✓ No Social Security tax, warm climate
Best for retirees 62+ →
🌲 Washington
NO State Income Tax
- ✓ Zero state income tax on all income
- ✓ Joint Base Lewis-McChord (JBLM), Naval Base Kitsap
- ✓ Excellent VA healthcare and military community
- ✓ Beautiful Pacific Northwest scenery
Save $2,000-12,000/year vs high-tax states →
🏔️ Colorado
Up to $24,000 Exemption (65+)
- ✓ Ages 55-64: Up to $20,000 exempt
- ✓ Age 65+: Up to $24,000 exempt
- ✓ Colorado Springs: 100,000+ veterans, 5 bases
- ✓ World-class outdoor recreation, 300+ days of sun
Perfect for outdoor enthusiasts 55+ →
🗽 Pennsylvania
100% Tax-Free Retirement
- ✓ 100% exemption on ALL military retirement pay
- ✓ 3.07% flat state income tax (lowest in nation)
- ✓ Carlisle Barracks, Fort Indiantown Gap, NSA Mechanicsburg
- ✓ Cost of living 2-3% below national average
No age or income limits →
🌴 South Carolina
Up to $30,000 Exemption
- ✓ $30,000 exemption (one of highest in nation)
- ✓ Age 65+: Additional $15,000 deduction (total $45K)
- ✓ Fort Jackson, Parris Island, Shaw AFB, JB Charleston
- ✓ Cost of living 6% below national average
Warm weather + major savings →
🐴 Kentucky
100% Tax-Free Retirement
- ✓ 100% exemption on ALL military retirement (since 2022)
- ✓ 4.5% flat state income tax
- ✓ Fort Campbell (101st Airborne), Fort Knox
- ✓ Cost of living 11% below national average
Ultra-affordable living →
🌵 Arizona
$3,500 Exemption + Low Tax
- ✓ $3,500 military retirement exemption
- ✓ Low 2.5% flat state income tax
- ✓ Luke AFB, Davis-Monthan AFB, Fort Huachuca
- ✓ 300+ days of sunshine, outdoor recreation
In-state tuition for all veterans →
🎸 Tennessee
NO State Income Tax
- ✓ Zero state income tax on all income
- ✓ Helping Heroes Grant for veteran education
- ✓ Fort Campbell (101st Airborne), Arnold AFB
- ✓ Cost of living 10% below national average
Nashville healthcare hub + music scene →
🎰 Nevada
NO State Income Tax
- ✓ Zero state income tax on all income
- ✓ Joint DoD/VA hospital at Nellis AFB
- ✓ Nellis AFB (Red Flag), NAS Fallon (TOPGUN)
- ✓ World-class entertainment, year-round sunshine
Las Vegas + outdoor recreation →
🚀 More State Guides Coming Soon
We're adding detailed guides for all 50 states. Next up:
Alaska
No state income tax, unique benefits
New Mexico
Full exemption, Kirtland AFB
Maryland
Partial exemption, DC area bases
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