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March 9, 2025
Question

How do I know if I have an allowable US Uniformed Services retirement benefit deduction?

  • March 9, 2025
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JohnB5677
March 9, 2025

The US Uniformed Services retirement benefit deduction is for military retirement, and it refers to the non-tax status in certain states.

 

  • Eight states have no state income tax. New Hampshire taxes only dividends and interest income.
    • Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming
  • Twenty-six states have state income taxes, but they don't tax military retirement benefits: 
    • Alabama, Arizona, Arkansas, Connecticut, Hawaii, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, and Wisconsin.
  • Eleven states tax military retirement benefits, but only partially. 
    • These states include Colorado, Delaware, Georgia, Idaho, Kentucky, Maryland, New Mexico, Oregon, South Carolina, Virginia, and West Virginia. The District of Columbia also taxes military benefits partially.
  • Five states tax military retirement pay fully and offer little to no tax benefits for retirement income: 
    • California, Montana, Rhode Island, Utah, and Vermont.

See the TurboTax article States that Don't Tax Military Retirement

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