States That Don't Tax Military Retirement
Most states either have no individual income tax or fully exempt military retired pay. The hard cases are the partial exclusions with age, income, and dollar limits.
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States With a Full Exemption or No Income Tax
The states below either show a full military-retirement exemption in the 2026 comparison or impose no broad individual income tax.
Partial Exemptions Need a Closer Read
California, Colorado, Delaware, Georgia, Idaho, Kentucky, Maryland, Montana, New Mexico, Oregon, Vermont, Virginia use partial military-retirement treatment in the current comparison. A dollar cap, age test, income phaseout, or coordination with another pension exclusion can limit the benefit.
California's temporary $20,000 exclusion, Georgia's 2026 $65,000 exclusion, New Mexico's $30,000 subtraction, Virginia's $40,000 subtraction, and Vermont's income-tested exemption illustrate why the word exempt is not enough by itself.
Do Not Choose a State on This One Line
Military retirement may be fully exempt while a spouse's pension, IRA withdrawals, or wages are taxable. Property-tax relief for disabled veterans can also matter more than the pension exclusion.
Start with the military rule, then compare every other stream in the 51-jurisdiction retirement tax table. Verify current eligibility with the state before changing domicile or withholding.
Military Retirement State Tax FAQs
Comparing states after military retirement?
We can model military pay, a spouse's income, retirement withdrawals, and residency timing together. Educational content is not individualized tax advice.
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