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 →
🦬 South Dakota
NO State Income Tax
- ✓ NO state income tax - one of only 9 states
- ✓ Ellsworth AFB - B-1B Lancer home
- ✓ Cost of living 11% below national average
- ✓ 100% property tax exemption for 100% disabled vets
Keep every dollar of your pension →
🐴 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 →
🏈 Alabama
100% Tax-Free Retirement
- ✓ 100% exemption on ALL military retirement pay
- ✓ Huntsville: NASA, defense contractors, tech hub
- ✓ Maxwell AFB, Fort Novosel, Redstone Arsenal
- ✓ Cost of living 14% below national average
GI Dependent Scholarship for families →
🌶️ New Mexico
100% Tax-Free Retirement
- ✓ 100% exemption on ALL military retirement (since 2022)
- ✓ Kirtland AFB, Holloman AFB, White Sands
- ✓ Vietnam Veterans Scholarship Program
- ✓ 300+ sunny days, affordable housing
Rich culture + outdoor adventures →
🌾 Oklahoma
100% Tax-Free Retirement
- ✓ 100% exemption on ALL military retirement pay
- ✓ Tinker AFB, Fort Sill, Altus AFB, Vance AFB
- ✓ Tuition waivers for veteran dependents
- ✓ Cost of living 15% below national average
Ultra-affordable with full benefits →
🏔️ Alaska
NO State Income Tax + PFD
- ✓ Zero state income tax on all income
- ✓ Annual PFD dividend (~$1,700/person)
- ✓ JBER, Fort Wainwright, Eielson AFB
- ✓ World-class outdoor recreation
Adventure + tax savings →
🦀 Maryland
$12,500 Exemption + DC Jobs
- ✓ Up to $12,500 military retirement exempt
- ✓ #1 area for defense contractor jobs
- ✓ Fort Meade, NSA, Aberdeen, Andrews
- ✓ Near DC, excellent schools
Best for second careers →
🌰 Ohio
100% Tax-Free Retirement
- ✓ 100% military retirement tax-free (2024+)
- ✓ Wright-Patterson AFB (30,000 employees)
- ✓ Cost of living 9% below average
- ✓ Affordable housing ($230K median)
Midwest value + full exemption →
🌾 Illinois
100% Tax-Free Retirement
- ✓ 100% military retirement + Social Security exempt
- ✓ Naval Station Great Lakes (Navy's only boot camp)
- ✓ Scott AFB (Air Mobility Command HQ)
- ✓ Illinois Veteran Grant (free tuition)
Full exemption + education benefits →
🎺 Missouri
100% Tax-Free Retirement
- ✓ 100% military retirement tax-free (2024+)
- ✓ Fort Leonard Wood (Army Engineer School)
- ✓ Whiteman AFB (B-2 Spirit stealth bomber)
- ✓ Cost of living 11% below national average
Affordable Midwest living →
⚜️ Louisiana
100% Tax-Free Retirement
- ✓ 100% military retirement + Social Security exempt
- ✓ Barksdale AFB (Global Strike Command HQ)
- ✓ Fort Johnson (JRTC combat training)
- ✓ Very low property taxes (0.55%)
Rich culture + full tax benefits →
🏔️ Michigan
Birth Year-Based Exemption
- ✓ Exemption based on birth year (older = more)
- ✓ Detroit Arsenal defense contractor jobs
- ✓ Camp Grayling (largest NG training center)
- ✓ Cost of living 5% below average
Great Lakes lifestyle + affordability →
🏁 Indiana
100% Tax-Free Retirement
- ✓ 100% military retirement tax-free (2024+)
- ✓ NSA Crane (3rd largest Navy installation)
- ✓ 1% property tax cap (constitutional)
- ✓ Cost of living 10% below average
Full exemption + ultra-affordable →
🌲 Minnesota
100% Tax-Free Retirement
- ✓ NEW: 100% exemption starting 2024
- ✓ Camp Ripley (largest NG training in US)
- ✓ Mayo Clinic healthcare access
- ✓ Minnesota GI Bill ($10K education)
New full exemption + quality of life →
🎸 Mississippi
100% Exempt + Lowest COL
- ✓ 100% exemption on military retirement
- ✓ LOWEST cost of living in nation (15-20% below avg)
- ✓ Keesler AFB, Columbus AFB, NAS Meridian, Camp Shelby
- ✓ Full property tax exemption for 100% disabled vets
Maximum value for your pension →
🧀 Wisconsin
100% Tax-Free Retirement
- ✓ 100% military retirement + SS exempt
- ✓ Fort McCoy (major Army training center)
- ✓ Wisconsin GI Bill (8 semesters free)
- ✓ Cost of living 5% below average
Full exemption + great education →
🌽 Iowa
100% Tax-Free Retirement
- ✓ 100% military retirement tax-free
- ✓ Flat 3.9% state income tax (simplest in nation)
- ✓ Camp Dodge (Iowa National Guard HQ)
- ✓ Cost of living 10% below national average
Ultra-affordable heartland living →
💎 Arkansas
100% Tax-Free Retirement
- ✓ 100% military retirement exempt (since 2018)
- ✓ Little Rock AFB, Fort Chaffee, Pine Bluff Arsenal
- ✓ Lowest property taxes in nation (0.62%)
- ✓ Cost of living 14% below average
Natural State + full tax freedom →
🌻 Kansas
100% Tax-Free Retirement
- ✓ 100% military retirement tax-free
- ✓ Fort Riley (1st Infantry), Fort Leavenworth (CGSC)
- ✓ Strong military community heritage
- ✓ Cost of living 12% below average
Military hub + full exemption →
🏔️ New Hampshire
NO State Income Tax
- ✓ Zero state income tax (one of 9 states)
- ✓ Portsmouth Naval Shipyard nearby (Maine)
- ✓ Pease Air National Guard Base
- ✓ Live Free or Die - strong veteran culture
Tax freedom in New England →
🚢 Connecticut
100% Tax-Free Retirement
- ✓ 100% military retirement tax-free
- ✓ Submarine Capital of the World
- ✓ Electric Boat (submarine builder) jobs
- ✓ Coast Guard Academy in New London
Perfect for submarine veterans →
🗽 Massachusetts
100% Tax-Free Retirement
- ✓ 100% military retirement tax-free
- ✓ World-class healthcare (Harvard, MGH)
- ✓ Major defense contractors (Raytheon)
- ✓ Birthplace of American liberty
Healthcare excellence + history →
🌲 Oregon
Tax-Free + NO Sales Tax
- ✓ Military retirement tax benefits
- ✓ ZERO sales tax - saves thousands
- ✓ Beautiful Pacific Northwest
- ✓ Near JBLM for base access
Double tax advantage →
🤠 Wyoming
NO State Income Tax
- ✓ Zero state income tax
- ✓ F.E. Warren AFB (nuclear missile)
- ✓ Very low property taxes (0.57%)
- ✓ Yellowstone & Grand Teton access
Cowboy State tax freedom →
🗽 New York
100% Tax-Free Retirement
- ✓ 100% military retirement tax-free
- ✓ Social Security also exempt
- ✓ Fort Drum (10th Mountain), West Point
- ✓ Upstate NY very affordable
Full exemption + strong VA network →
🏔️ Utah
100% Tax-Free Retirement
- ✓ 100% military retirement tax-free
- ✓ Hill AFB - largest west of Mississippi
- ✓ 5 national parks ("Mighty Five")
- ✓ World-class skiing
Outdoor paradise + full exemption →
🦌 Montana
100% Exempt + NO Sales Tax
- ✓ 100% military retirement tax-free
- ✓ ZERO sales tax - double savings!
- ✓ Malmstrom AFB (ICBM mission)
- ✓ Glacier & Yellowstone access
Big Sky Country + double tax advantage →
🌾 Nebraska
NEW: 100% Exempt (2024)
- ✓ NEW: 100% exemption starting 2024
- ✓ Offutt AFB - STRATCOM headquarters
- ✓ Cost of living 8% below national average
- ✓ Property tax credits for disabled vets ($4,500)
New full exemption + affordability →
🥔 Idaho
100% Tax-Free Retirement
- ✓ 100% military retirement + SS exempt
- ✓ Mountain Home AFB (366th FW)
- ✓ Affordable Mountain Home area
- ✓ Stunning outdoor recreation
Gem State + full tax freedom →
🦀 Delaware
100% Exempt + NO Sales Tax
- ✓ 100% military retirement + SS exempt
- ✓ ZERO sales tax - triple savings!
- ✓ Dover AFB (largest East Coast port)
- ✓ Low property taxes
First State + triple tax advantage →
🚀 More State Guides Coming Soon
We're adding detailed guides for all 50 states. Next up:
South Dakota
No income tax, Ellsworth AFB
Maine
Partial exemption, Portsmouth NSY
Vermont
Tax benefits, National Guard
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