State Tax Information for Military Members and Retirees – Military.com

State Tax Information for Military Members and Retirees  Military.com

What tax benefits does your state offer to military members and retirees? Find out which benefits are available to you. You may know that military allowances such as the Basic Allowance for Housing are tax-free. You may also know that most Department of Veterans Affairs benefits are also tax-free. Did you know that many states do not charge income tax on active duty or retired military pay? Many others tax only a portion of these pays. To see what type of tax breaks your state offers for military members, retirees and survivors, check out our list. Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Virgin Islands and Puerto Rico have their own independent tax departments.

If you have income from one of these possessions, you may have to file a U.S. tax return only, a possession tax return only, or both returns. This generally depends on whether you are considered a resident of one of the possessions. In some cases, you may have to file a U.S. return, but be able to exclude income earned in a possession from U.S. tax. For more information, see the IRS International Taxpayer page. Get exclusive rates for service members. Save up to $500/year Explore career paths with the United States Military. Take the first step today.