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.