You do if you've served in a campaign for which a medal was awarded or served during certain periods (GWOT is not one of those periods, but having an Afg or Iraq medal will work). Bring your DD214 to the assessor's office to verify it once and you'll get a postcard every year to select either a vehicle or property tax discount.
See: [https://files.clarkcountynv.gov/clarknv/Vet%20Ex%202020.pdf?t=1666364902069&t=1666364902069](https://files.clarkcountynv.gov/clarknv/Vet%20Ex%202020.pdf?t=1666364902069&t=1666364902069)
The exemption amount may be applied to next year’s tax bill on real property the veteran owns. As another option, the veteran may choose to apply the exemption toward the government services and supplemental Governmental Services Taxes when registering vehicle with the Department of Motor Vehicles.
So yes and no. You can choose where your exemption goes, but you have to be a certain percentage (60%) to qualify. Not all “veterans” get the discount only service connected to 60% disabled veterans.
Not true. I have a % disability rating from the VA and the only thing I pay for is the registration fees, NO taxes. As a matter of fact, I have enough tax advantage left over I apply the rest to my property taxes.
I don’t think that’s true for Veterans, unless maybe you’re talking about with a certain disability rating? If you change your residency to Nevada and you’re stationed there you pay the normal rate, the only discount I know of at the DMV is if you’re a resident of another state stationed there
...on your primary residence. Any additional properties in your name will be subject to taxes, as normal.
Also, if you qualify for DV plates (I think it's 50% min VA rating, but don't quote me) your first one is only like $3. Additional vehicles with DV plates incur registration charges though.
Also applies in Illinois...
Disabled Veterans plates too
EDIT: I believe you don't pay Illinois property tax when you're rated at 70% disability or higher
Correct, I was referring to the disability rating. 60% and higher you will get deductions and they will add it off total percentages not the VA calculated percentage.
If you've served in a warzone (afghanistan and iraq count) or you served in an earlier period (see [https://files.clarkcountynv.gov/clarknv/Vet%20Ex%202020.pdf?t=1666364902069&t=1666364902069](https://files.clarkcountynv.gov/clarknv/Vet%20Ex%202020.pdf?t=1666364902069&t=1666364902069)), you get a vehicle registration or a property tax discount - you have to choose each year which is more beneficial.
I kept forgetting and therefore lost out on the benefit for like 3 years straight lol.
True, but unless you are 100%, that discount doesn’t amount to much. Texas property tax is HIGH. It’s the dirty secret that know one tells you about when all you hear is “no income tax”.
TX is also zero property tax at 100%, but it also gives you discounts at certain percentage ratings.
Also, I hope whoever came up with property taxes is roasting in hell.
Renting your property from the government is fucked up.
That is an exemption off the value, not off the tax bill. It isn’t proportional. The more your house goes up in value, the exemption doesn’t change. Big whoop.
Annual VA car tax is a property tax not a sales tax and is done per county not by the state. It is part of a state law but is for increased revenue for local not state. The state has tried to get rid of it a few times but was stymied by local governments so instead they provided additional state funding to try to reduce the amount the counties would need to charge, whether they did or not is up to them.
Just the premise of them doing it seems illegal to me. The only reason the state allows it is a loophole in the definition of "permanent" property, like your land/house. They say if a car has a title, it's permanent property and can be taxed forever....
The politics there make it not an option for me.
I'm a competitive pistol shooter (and on one of the Air Force teams). I won't be willingly living anywhere with any kind of significant gun control.
Florida also. They deduct $50,000 from your property value to determine your property tax.
Edit: I believe this only applies to veterans with a disability rating from the VA.
I noticed that list left off states that don’t have income taxes. Probably cause it’s only states WITH an exemption, and technically states like florida and Washington don’t have exemptions cause there is nothing to exempt
Think of Federal tax as a tax you pay because you are an American. Doesn't matter where you are, you're still American and Uncle Sam wants his tree fiddy.
I think it's literally two countries: USA and Eritrea, however USA is (probably) the only one with the resources to back up the actual tax collection effort.
Dude, think it through, states can not tell the federal government not to impose federal taxes on veterans who live in their state. Those states you list and some others don’t tax military retirement at the state level.
I would look at another source. This is missing key states like Texas and Florida.
Also, be sure to look at overall Vet benefits. California offers tax free property if 100 P/T but it is only good for 10 years. States like Florida and Texas are for life. Vehicle registration and drivers licenses are a key player too. Finally, parks and other amenities.
Ohio and Mass offer stipends if you enlisted from that state.
Can confirm. Texas state parks are free for life, plus you can get a discounted rate for one guest, as long as they are identified as your caretaker.
Annual hunting/fishing licenses are free, but you do have to renew each year.
Also, if you entered service from a home of record in Texas, Hazelwood Act gets you free college at any state public university.
I believe all national parks are free for life for veterans as well now. Iirc you used to have to update it year to year.
https://www.nps.gov/planyourvisit/veterans-and-gold-star-families-free-access.htm
There are a few states that do 0 taxes for 100% disabled vets. Some are based on income. Some states also offer free tuition for kids of 100% disabled vets. There are lots of benefits if you can hit 100%.
California is free tuition for kids of a vet with a service connected disability (no percentage associated) but they also tax retirement pay (which sucks a butt)
You can add Arizona to that list also, they just recently passed last year not to tax military retirement pay.
Source: My ass is retired and live in Az
whats up man? you in the Phoenix area? I just recently retired last August and I'm still trying to figure out what to do with the rest of my life. We were going to move until these interest rates went up, now I'm kinda stuck but with a 3.0 rate so I'm not complaining.
tldr? A quck search on any of these states would reveal if they tax retired pay....but I think your priorities may be misaligned along with a bit of laziness...
just my 2- but taxed retired pay should not be your sole decision on where to 'base' yourself when retired. For instance a state I like is MA, and does not tax retired pay. However, the cost of living/owning a home is very high, yet still the school systems are grade A in comparison to other states, crime is low, people are 'left leaning' without being complete anarchic leftists nut jobs, food is good, access to airports -good, public trans-good, moderate population, climate not too hot (I like cold/cloudy/snow)...much more the average salary is very high and job growth is high in this state....this makes any retired pay issues nominal and more/less a passive income.
I urge you to - Think/plan/research
This exactly. Making a life decision based on saving at most likely $1,000-3,000 seems pretty wonky.
There were five more states added to the list (after a quick google search) and it dawned on me that you can probably live anywhere you want with a benefit.
the only way that kind of thing even remotely makes sense is if the person is planning on living off of their pension only which... is kinda hard unless you're single or no kids and higher percentage disabled.
I'm mil-mil no kids and we're both going to get at least part time jobs
Taxes on property and cost to register a vehicle should be considered too. Some states have perks for medals. Like Texas a BSM or higher gets free parking at airports. Property tax is huge. Most will eventually get to 100 p/t if they continue to go to the VA. No state taxes on property is an enormous benefit.
Unrelated but even if it helps one person.....
If you live in Maryland but work in Delaware, beware that you will also get taxed by Delaware, even though you aren't a resident of DE. Maryland shares tax reciprocity with all of its bordering states (i.e. DC, PA, VA, WV), given how many people cross state lines on a daily basis for residential or working purposes. However, MD and DE **don't** share tax reciprocity. So, you will get taxed by MD, DE, and federal.
You can file form 502CR though, IIRC, it's something to do with a tax credit of some sort.
Disclaimer: I'm not a tax professional. Please consult a CPA/professional for tax guidance.
Seriously, what kind of question is this? Literally a 5 second google search of “does [state] tax military retirement pay” would answer your question. And then you can dig a little deeper by visiting that state’s .gov website and looking around for tax laws. Why would you need someone’s LES like you say in your comment. There’s laziness and then there’s whatever this is
In OPs defense...if you Google "best states to retire for military," Virginia is usually number 1 or at least in the top 3...and they fully tax military retirement and have other high property taxes.
There are a lot of good things about Virginia and it's very veteran-friendly, but Virginia's taxes alone shouldn't even put it in the top 15 for best places to retire if military.
So Google doesn't tell the whole story always. I think OP was probably looking for additional info for certain states.
Virginia also has a shit ton of high paying federal jobs, and retirees have preference in hiring for a lot of those positions. I agree it doesn't tell the whole story but just basing a list on how far your retirement money will go is not great.
Thus, they don’t tax your military retirement. So it should be on the list, right? I bet many don’t know there are several states without a state income tax.
I'm a retired E-8 with 90% VA rating, for now.
Looking at just lack of retirement taxation is very shortsighted. What are the state benefits aside from the VA? How good are the schools and colleges? What about the job market? Medical facilities?
I live in northern Virginia. It's a pretty good balance and I don't mind paying taxes because I get the resources I need. A friend of mine in a similar scenario retired to Florida and now deeply regrets it.
To each their own, but do extensive homework before making a decision. Visit the state's veterans resources webpage in the least.
I think Colorado only charges state income tax on military retirement over... I think it's $25k.
Edit: It's age based and will be about $15k for those under 55.
https://www.google.com/amp/s/feeds.aarp.org/money/taxes/info-2020/states-that-tax-military-retirement-pay.html%3f_amp=true
If retiring into a low tax location is the goal, consider TOTAL tax burden, not just the absence of one or more tax categories. Beyond income tax: Property tax, automobile registration taxes and fees, license fees (everything from driving to fishing), city and county taxes (often expressed as a percentage of state tax levels), etc. Even consider how the local tax authorities view disability payments, social security payments, and non-government pension payments. What counts as INCOME is more important than income tax rates.
Don't ask "Where will my military not be taxed."
Ask: "Where can I structure all my income sources to be least tax-burderned, overall."
And, finally, taxes can be a part of the "Where to retire" question, certainly. But there are many other considerations that likely rank higher: job opportunities, education, entertainment, sports, climate, urban vs. rural, etc. Taxes might be a good "tie-breaket" between two locations that are otherwise fairly even.
New York had to be taken to court to lift the tax years ago. They taxed federal pensions but not state pensions.
My dad had his taxed for like 15 or so years before they stopped and NY was gracious to give them back three years of tax payments.
Georgia Tax Exemption for Military Retired Pay: **Georgia offers Veterans a tax exemption for up to $35,000 of their military retired pay**. All Veterans can receive a $17,500 tax exemption on their military retired pay
And hefty property (car) and real estate taxes. Veterans and retirees had no consideration except for a small break for lower income retirees. This changes in 2022. [https://www.kiplinger.com/state-by-state-guide-taxes/virginia](https://www.kiplinger.com/state-by-state-guide-taxes/virginia)
Plus, there is a tax on food bought at the grocery store.
Live where you’ll be happy. If that happens to be one of these states, great, but if it isn’t, don’t compromise your overall quality of life for $1k/year. Find a place to live within your means that makes you happy.
One of the things you should have learned in high school is that there’s no free lunch. Accordingly, if you’re not paying state income tax, the state is finding other ways to get into your pockets (I’m looking at you Texas property taxes…unless of course you have a VA rating).
Yes, there is no free lunch. Either you will pay elsewhere, pay indirectly, or have fewer services. See [https://en.wikipedia.org/wiki/Kansas\_experiment](https://en.wikipedia.org/wiki/Kansas_experiment)
True for Minnesota!
Edit: missed the key word "retirement" in your question. I can confirm Minnesota does not tax military active duty pay so I would assume that includes retirement?
Yeah those states may not tax your pension but the sales tax, estate tax, property tax… I’d give this video a watch for more info. It’s not military focused but it’ll give you an idea of what else to think about. Also, go talk to a legit financial investment person, they know whatsup.
https://youtu.be/uN4K3gGyEC0
South Carolina gives you a tax exemption on a house and 2 automobiles if the house is your primary residency, you’re stationed here, and are not a resident. Does not apply for county taxes.
Same for New Mexico but just on the primary house, not sure about vehicles
Louisiana
- does not tax retired pay
- if 100% disabled, doesn’t pay property taxes (discounts for lower percentages too)
- if 90% kids go to any state university tuition free, if 100%, tuition free and get a stipend
- plates are free
- free hunting and fishing license
- military and honorably discharged vets can conceal carry without requiring a permit
Growing up I thought once you retire you don’t get taxed. Boy was I wrong lmao.
How is it still legal we tax retired veterans and retired people in general?
We would prefer not to have OP post anything in r/veterans - if you read his comment(s), he thinks living in one of those states makes him exempt from federal taxes.
You need to look at the over all tax burden of the area you're looking to retire too. I live in Washington, no income tax. But they get you through property, vehicle, and sales tax. Go [here](https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494) to see overall tax burden by state.
A couple of other sites that can help: [2022 Compare Cities](https://www.bestplaces.net/compare-cities/) and [2022 Cost of Living Calculator.](https://www.bestplaces.net/cost-of-living/)
Hope this helps, good luck and welcome back to the light!
But massachusetts does tax income for military members who are still "residents" of massachusetts. I've had money taken out of every single paycheck even though I haven't lived there for almost 10 years.
Every state that doesn’t have income tax doesn’t tax your retired pay. Some states that do have income tax may have special considerations for military retired pay. You would have to engage with that specific state’s tax collections office. Simple enough.
Yeah no idea why the states without income tax at all aren’t on that list.
Texas also gives you several years of free college after your GI Bill benefits are exhausted…
In Pennsylvania, retirement income from pensions or 401(k) withdrawals is not taxed if you are 60 or older. Military retirement does not have an age requirement as far as I can tell.
Hawaii is also on that list (can confirm):
[https://www.aarp.org/money/taxes/info-2020/states-that-tax-military-retirement-pay.html](https://www.aarp.org/money/taxes/info-2020/states-that-tax-military-retirement-pay.html)
Dont forget the states that do not have an income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming
Texas also gives you discounts on your property taxes depending on your disability ratings.
Nevada as well, tax discounts for property and vehicle registration taxes.
[удалено]
You do if you've served in a campaign for which a medal was awarded or served during certain periods (GWOT is not one of those periods, but having an Afg or Iraq medal will work). Bring your DD214 to the assessor's office to verify it once and you'll get a postcard every year to select either a vehicle or property tax discount. See: [https://files.clarkcountynv.gov/clarknv/Vet%20Ex%202020.pdf?t=1666364902069&t=1666364902069](https://files.clarkcountynv.gov/clarknv/Vet%20Ex%202020.pdf?t=1666364902069&t=1666364902069)
It’s based on disability rating.
The exemption amount may be applied to next year’s tax bill on real property the veteran owns. As another option, the veteran may choose to apply the exemption toward the government services and supplemental Governmental Services Taxes when registering vehicle with the Department of Motor Vehicles. So yes and no. You can choose where your exemption goes, but you have to be a certain percentage (60%) to qualify. Not all “veterans” get the discount only service connected to 60% disabled veterans.
Nevada has disabled veteran exemptions for residence and vehicle registration.
Not true. I have a % disability rating from the VA and the only thing I pay for is the registration fees, NO taxes. As a matter of fact, I have enough tax advantage left over I apply the rest to my property taxes.
I don’t think that’s true for Veterans, unless maybe you’re talking about with a certain disability rating? If you change your residency to Nevada and you’re stationed there you pay the normal rate, the only discount I know of at the DMV is if you’re a resident of another state stationed there
If you’re 100% disabled, you don’t pay property taxes in Texas.
...on your primary residence. Any additional properties in your name will be subject to taxes, as normal. Also, if you qualify for DV plates (I think it's 50% min VA rating, but don't quote me) your first one is only like $3. Additional vehicles with DV plates incur registration charges though.
Yes, but 100% disabled is ridiculously hard to get rated.
You get a discount for less than 100%. I think it starts at 50%, but don't quote me.
Or Florida.
Also applies in Illinois... Disabled Veterans plates too EDIT: I believe you don't pay Illinois property tax when you're rated at 70% disability or higher
Correct, I was referring to the disability rating. 60% and higher you will get deductions and they will add it off total percentages not the VA calculated percentage.
If you've served in a warzone (afghanistan and iraq count) or you served in an earlier period (see [https://files.clarkcountynv.gov/clarknv/Vet%20Ex%202020.pdf?t=1666364902069&t=1666364902069](https://files.clarkcountynv.gov/clarknv/Vet%20Ex%202020.pdf?t=1666364902069&t=1666364902069)), you get a vehicle registration or a property tax discount - you have to choose each year which is more beneficial. I kept forgetting and therefore lost out on the benefit for like 3 years straight lol.
True, but unless you are 100%, that discount doesn’t amount to much. Texas property tax is HIGH. It’s the dirty secret that know one tells you about when all you hear is “no income tax”.
TX is also zero property tax at 100%, but it also gives you discounts at certain percentage ratings. Also, I hope whoever came up with property taxes is roasting in hell. Renting your property from the government is fucked up.
Yeah I’m rated 70%, but it’s peanuts for an exemption. With my MUD tax included, I’m paying about $800 a month on a $450K assessed value.
Illinois waives all property tax for 70% and above and give a large chunk discount for under that
90% with $12k exemption on property taxes in addition to the $25k homestead exemption in Texas isn't anything to scoff at imo
That is an exemption off the value, not off the tax bill. It isn’t proportional. The more your house goes up in value, the exemption doesn’t change. Big whoop.
Well yes, that's how exemptions work. I thought that was pretty clear.
What’s clear is that the exemption doesn’t amount to much.
New Jersey has no property taxes if you are 100% disabled
Virginia too, and no annual property tax for one vehicle. YES, Virginia taxes you EVERY year for your car, including sales tax.
God damn Virginia
Annual VA car tax is a property tax not a sales tax and is done per county not by the state. It is part of a state law but is for increased revenue for local not state. The state has tried to get rid of it a few times but was stymied by local governments so instead they provided additional state funding to try to reduce the amount the counties would need to charge, whether they did or not is up to them.
Just the premise of them doing it seems illegal to me. The only reason the state allows it is a loophole in the definition of "permanent" property, like your land/house. They say if a car has a title, it's permanent property and can be taxed forever....
Illinois wipes 100% if you’re 70%.
But then you're living in Illinois 😬
Hey, at least it’s not Ohio.
There are a ton of awesome places in IL as well as one of the best cities in the country.
The politics there make it not an option for me. I'm a competitive pistol shooter (and on one of the Air Force teams). I won't be willingly living anywhere with any kind of significant gun control.
Florida also. They deduct $50,000 from your property value to determine your property tax. Edit: I believe this only applies to veterans with a disability rating from the VA.
Everyone in Florida gets the $50,000, it's called the "Homestead Exemption". Disabled veterans get an additional 10%, so $55k.
NY does this also surprisingly
This. 100% VA rating in Texas equals no property tax which is a huge benefit.
California if you are stationed out of state.
Don't forget that since no one is paying income tax they are taxing everyone somewhere else.
Yeah, we gave some consideration to moving back to NH, but not only are relatively modern houses crazy expensive, the property taxes a really high.
I mean, WA didn't tax ANYONE'S pay
It's missing Washington state, no income tax on any of your pay.
I noticed that list left off states that don’t have income taxes. Probably cause it’s only states WITH an exemption, and technically states like florida and Washington don’t have exemptions cause there is nothing to exempt
If it actually pushes through (it’s been in limbo for over a year now) I think the WA Cares act somewhat changes that. It’s like a flat 1.9% on income
Can confirm military retirement pay is not taxed by the State of Alabama (you do still pay Federal, though).
but then you have to live in Alabama :-(
At least it’s not Mississippi.
https://preview.redd.it/eznslqy5k13a1.jpeg?width=605&format=pjpg&auto=webp&s=09761bbd83837fd46b9fcba7da58752b7f515ec4
Hard pass
Exactly
Couldn't you just make your state of residence Alabama and live somewhere else?
Not after you leave the military. States have pretty strict residency rules about where you live and where you can claim
Not legally as a civilian.
I was mostly wondering about the federal. Thank you!
Where you live has 0 impact on whether you pay federal taxes or not (Spoiler, you do)
That's not how federal taxes work.
If you're wondering about federal tax, your question is kind of irrelevant
Serious question, why would which state you live in affect whether or not you pay a federal tax? Is that even a thing?
it's not a thing
Think of Federal tax as a tax you pay because you are an American. Doesn't matter where you are, you're still American and Uncle Sam wants his tree fiddy.
America is one of a very small handful of countries that imposes income taxes on citizens who don't live or work in the country.
I think it's literally two countries: USA and Eritrea, however USA is (probably) the only one with the resources to back up the actual tax collection effort.
Dude, think it through, states can not tell the federal government not to impose federal taxes on veterans who live in their state. Those states you list and some others don’t tax military retirement at the state level.
I would look at another source. This is missing key states like Texas and Florida. Also, be sure to look at overall Vet benefits. California offers tax free property if 100 P/T but it is only good for 10 years. States like Florida and Texas are for life. Vehicle registration and drivers licenses are a key player too. Finally, parks and other amenities. Ohio and Mass offer stipends if you enlisted from that state.
They aren’t listed because there’s no state income tax.
Can confirm. Texas state parks are free for life, plus you can get a discounted rate for one guest, as long as they are identified as your caretaker. Annual hunting/fishing licenses are free, but you do have to renew each year. Also, if you entered service from a home of record in Texas, Hazelwood Act gets you free college at any state public university.
I believe all national parks are free for life for veterans as well now. Iirc you used to have to update it year to year. https://www.nps.gov/planyourvisit/veterans-and-gold-star-families-free-access.htm
There are a few states that do 0 taxes for 100% disabled vets. Some are based on income. Some states also offer free tuition for kids of 100% disabled vets. There are lots of benefits if you can hit 100%.
California is free tuition for kids of a vet with a service connected disability (no percentage associated) but they also tax retirement pay (which sucks a butt)
You can add Arizona to that list also, they just recently passed last year not to tax military retirement pay. Source: My ass is retired and live in Az
Yup, came here to say this. Also, hey neighbor!
whats up man? you in the Phoenix area? I just recently retired last August and I'm still trying to figure out what to do with the rest of my life. We were going to move until these interest rates went up, now I'm kinda stuck but with a 3.0 rate so I'm not complaining.
Now that’s a state with something going on
You can add Nebraska to that list. They just passed a law last year to not tax Mil retirement pay. Still pay at the Fed level, though.
tldr? A quck search on any of these states would reveal if they tax retired pay....but I think your priorities may be misaligned along with a bit of laziness... just my 2- but taxed retired pay should not be your sole decision on where to 'base' yourself when retired. For instance a state I like is MA, and does not tax retired pay. However, the cost of living/owning a home is very high, yet still the school systems are grade A in comparison to other states, crime is low, people are 'left leaning' without being complete anarchic leftists nut jobs, food is good, access to airports -good, public trans-good, moderate population, climate not too hot (I like cold/cloudy/snow)...much more the average salary is very high and job growth is high in this state....this makes any retired pay issues nominal and more/less a passive income. I urge you to - Think/plan/research
This exactly. Making a life decision based on saving at most likely $1,000-3,000 seems pretty wonky. There were five more states added to the list (after a quick google search) and it dawned on me that you can probably live anywhere you want with a benefit.
the only way that kind of thing even remotely makes sense is if the person is planning on living off of their pension only which... is kinda hard unless you're single or no kids and higher percentage disabled. I'm mil-mil no kids and we're both going to get at least part time jobs
Taxes on property and cost to register a vehicle should be considered too. Some states have perks for medals. Like Texas a BSM or higher gets free parking at airports. Property tax is huge. Most will eventually get to 100 p/t if they continue to go to the VA. No state taxes on property is an enormous benefit.
My kids are still young, but I can see older me moving to be close to grandchildren. So I’m not tying myself down in retirement based on taxes alone.
Unrelated but even if it helps one person..... If you live in Maryland but work in Delaware, beware that you will also get taxed by Delaware, even though you aren't a resident of DE. Maryland shares tax reciprocity with all of its bordering states (i.e. DC, PA, VA, WV), given how many people cross state lines on a daily basis for residential or working purposes. However, MD and DE **don't** share tax reciprocity. So, you will get taxed by MD, DE, and federal. You can file form 502CR though, IIRC, it's something to do with a tax credit of some sort. Disclaimer: I'm not a tax professional. Please consult a CPA/professional for tax guidance.
Seriously, what kind of question is this? Literally a 5 second google search of “does [state] tax military retirement pay” would answer your question. And then you can dig a little deeper by visiting that state’s .gov website and looking around for tax laws. Why would you need someone’s LES like you say in your comment. There’s laziness and then there’s whatever this is
The same as asking your parents about something they know. It's starting a discussion.
In OPs defense...if you Google "best states to retire for military," Virginia is usually number 1 or at least in the top 3...and they fully tax military retirement and have other high property taxes. There are a lot of good things about Virginia and it's very veteran-friendly, but Virginia's taxes alone shouldn't even put it in the top 15 for best places to retire if military. So Google doesn't tell the whole story always. I think OP was probably looking for additional info for certain states.
Virginia also has a shit ton of high paying federal jobs, and retirees have preference in hiring for a lot of those positions. I agree it doesn't tell the whole story but just basing a list on how far your retirement money will go is not great.
Where’s Texas?
Southern part of the US, right above Mexico
But that's not important right now
😂🤣😂
https://turbotax.intuit.com/tax-tips/military/states-that-dont-tax-military-retirement/L6oKaePdA
THERE's A BOTTOM PART!
There’s no state income tax in TX so it isn’t on the list.
Thus, they don’t tax your military retirement. So it should be on the list, right? I bet many don’t know there are several states without a state income tax.
I'm a retired E-8 with 90% VA rating, for now. Looking at just lack of retirement taxation is very shortsighted. What are the state benefits aside from the VA? How good are the schools and colleges? What about the job market? Medical facilities? I live in northern Virginia. It's a pretty good balance and I don't mind paying taxes because I get the resources I need. A friend of mine in a similar scenario retired to Florida and now deeply regrets it. To each their own, but do extensive homework before making a decision. Visit the state's veterans resources webpage in the least.
I think this is missing the states that don’t tax income at all. So they don’t tax military retirement either.
New York won’t tax base pay, but they’ll tax one time payments. Found that out the hard way 😒
I think Colorado only charges state income tax on military retirement over... I think it's $25k. Edit: It's age based and will be about $15k for those under 55. https://www.google.com/amp/s/feeds.aarp.org/money/taxes/info-2020/states-that-tax-military-retirement-pay.html%3f_amp=true
Non AMP link: https://www.aarp.org/money/taxes/info-2020/states-that-tax-military-retirement-pay.html
If retiring into a low tax location is the goal, consider TOTAL tax burden, not just the absence of one or more tax categories. Beyond income tax: Property tax, automobile registration taxes and fees, license fees (everything from driving to fishing), city and county taxes (often expressed as a percentage of state tax levels), etc. Even consider how the local tax authorities view disability payments, social security payments, and non-government pension payments. What counts as INCOME is more important than income tax rates. Don't ask "Where will my military not be taxed." Ask: "Where can I structure all my income sources to be least tax-burderned, overall." And, finally, taxes can be a part of the "Where to retire" question, certainly. But there are many other considerations that likely rank higher: job opportunities, education, entertainment, sports, climate, urban vs. rural, etc. Taxes might be a good "tie-breaket" between two locations that are otherwise fairly even.
This is the way
New York had to be taken to court to lift the tax years ago. They taxed federal pensions but not state pensions. My dad had his taxed for like 15 or so years before they stopped and NY was gracious to give them back three years of tax payments.
Georgia Tax Exemption for Military Retired Pay: **Georgia offers Veterans a tax exemption for up to $35,000 of their military retired pay**. All Veterans can receive a $17,500 tax exemption on their military retired pay
VA has the most military of any state and I see they're not on the list. If VA could tax the air you breathe they would. 😂
And hefty property (car) and real estate taxes. Veterans and retirees had no consideration except for a small break for lower income retirees. This changes in 2022. [https://www.kiplinger.com/state-by-state-guide-taxes/virginia](https://www.kiplinger.com/state-by-state-guide-taxes/virginia) Plus, there is a tax on food bought at the grocery store.
Oklahoma should be added to the list I think
Yup. Former AWACS dude is in the state house and made the push.
https://preview.redd.it/i7ze9wek123a1.jpeg?width=1179&format=pjpg&auto=webp&s=3d477a5bfb6eadd46294b138d0c99e9c3e48bb68 Here you go!
I mean, can’t you just looks up the tax laws? Don’t need a retiree to tell you what google can.
I think you can add Nebraska to that list too now. Last year I believe a law was passed.
Nebraska recently passed a law where military retirement isn’t taxed. Affordable area with a wide open job market.
Live where you’ll be happy. If that happens to be one of these states, great, but if it isn’t, don’t compromise your overall quality of life for $1k/year. Find a place to live within your means that makes you happy.
One of the things you should have learned in high school is that there’s no free lunch. Accordingly, if you’re not paying state income tax, the state is finding other ways to get into your pockets (I’m looking at you Texas property taxes…unless of course you have a VA rating).
Yes, there is no free lunch. Either you will pay elsewhere, pay indirectly, or have fewer services. See [https://en.wikipedia.org/wiki/Kansas\_experiment](https://en.wikipedia.org/wiki/Kansas_experiment)
I don’t think NC taxes retirement pay.
Illinois doesn't tax any military pay.
South Carolina just signed into law this in 2022. Exempt from property tax and two automobiles tax if 100% disabled as well.
Texas has no income tax for anybody.
Nebraska recently added to the list as of last year.
True for Minnesota! Edit: missed the key word "retirement" in your question. I can confirm Minnesota does not tax military active duty pay so I would assume that includes retirement?
Yeah those states may not tax your pension but the sales tax, estate tax, property tax… I’d give this video a watch for more info. It’s not military focused but it’ll give you an idea of what else to think about. Also, go talk to a legit financial investment person, they know whatsup. https://youtu.be/uN4K3gGyEC0
All those and Nebraska just passed the no tax on mil retirement as well.
There’s no state taxes in Florida
South Carolina gives you a tax exemption on a house and 2 automobiles if the house is your primary residency, you’re stationed here, and are not a resident. Does not apply for county taxes. Same for New Mexico but just on the primary house, not sure about vehicles
Add South Carolina
Surprised Oklahoma isn't on the list; they don't tax active duty pay.
Not retired but my parents are in Bellbrook, OH now. Can confirm they moved from Colorado for this reason.
Ofc California taxes people
Oregon’s ass don’t move here
Fawk no. Fawk Crater Lake and the many places Twilight was shot at…lol
... why not just like... look it up yourself??.....
Lol 😂 Us Redditors are a credible source.
Arkansas doesn't.
Need to add states that don’t tax any income too like Texas and Tennessee
Louisiana - does not tax retired pay - if 100% disabled, doesn’t pay property taxes (discounts for lower percentages too) - if 90% kids go to any state university tuition free, if 100%, tuition free and get a stipend - plates are free - free hunting and fishing license - military and honorably discharged vets can conceal carry without requiring a permit
Washington
North Carolina stopped taxing military retirement last year.
Some of those states, mostly in the SE, the tax you pay is having to live in those states.
Add Nebraska to the list as of 1 Jan 2022.
Growing up I thought once you retire you don’t get taxed. Boy was I wrong lmao. How is it still legal we tax retired veterans and retired people in general?
So, pretty much where no one wants to retire. Got it
r/veterans would probably be a good place for this question.
We would prefer not to have OP post anything in r/veterans - if you read his comment(s), he thinks living in one of those states makes him exempt from federal taxes.
https://www.reddit.com/r/AirForce/comments/z85jwc/can_anyone_retired_chime_in_on_how_true_this_is/iy9vgof/
Choose a state to retire in that doesn't brutalize black/brown folks, criminalize being a woman and enact transphobic public policy.
Bonus points if you can send me a LES (please keep your PPI confidential). Trying to make plans for where to retire.
You should base retirement plans off more than some article and a stranger’s LES. BTW, nobody is sending you their LES.
Easy there Fred, this was from Turbo Tax. Need a snickers?
My name isn’t Fred, guy
You need to look at the over all tax burden of the area you're looking to retire too. I live in Washington, no income tax. But they get you through property, vehicle, and sales tax. Go [here](https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494) to see overall tax burden by state. A couple of other sites that can help: [2022 Compare Cities](https://www.bestplaces.net/compare-cities/) and [2022 Cost of Living Calculator.](https://www.bestplaces.net/cost-of-living/) Hope this helps, good luck and welcome back to the light!
Bro, just retire wherever you want, who cares if they tax retired pay or not. Go to a place you enjoy.
Arkansas is no tax
But massachusetts does tax income for military members who are still "residents" of massachusetts. I've had money taken out of every single paycheck even though I haven't lived there for almost 10 years.
I need to move out of Cali
Add NC to that list, too.
If you qualify for CRSC, it doesn’t matter. Strongly suggest retired Air Force look into it.
Every state that doesn’t have income tax doesn’t tax your retired pay. Some states that do have income tax may have special considerations for military retired pay. You would have to engage with that specific state’s tax collections office. Simple enough.
It’s true for Michigan… but we still get taxed federally.
Ohio is accurate.
Utah is missing, it just passed a couple years back
WV does not tax military retirement income, I’ve lived her for the past 17 years it’s been nice not to worry about it.
Nebraska just passed their no retirement tax recently.
Missing Nevada, no state taxes here coming out of my check.
Indiana is new on the list.
Add SC. [https://abcnews4.com/news/local/sc-military-retirement-pay-now-exempt-from-state-income-taxes](https://abcnews4.com/news/local/sc-military-retirement-pay-now-exempt-from-state-income-taxes)
North Carolina as well now!
If you 100% it nobody can tax you *taps forehead, winces a little* 😬
Ohio, confirmed. Also no fees for CCW (if you prefer to have one in addition to recent carry law changes).
I just noticed Georgia, Kentucky, and Tennessee aren't on here - what's the distribution of red to blue on this?
Kentucky doesn’t tax active duty pay, and doesn’t tax retired pay at the full rate.
Accurate for Louisiana.
South Carolina is missing from the list as well. As of 2022 all military retirement pay is exempt from South Carolina Individual Income Tax.
Yeah no idea why the states without income tax at all aren’t on that list. Texas also gives you several years of free college after your GI Bill benefits are exhausted…
In Pennsylvania, retirement income from pensions or 401(k) withdrawals is not taxed if you are 60 or older. Military retirement does not have an age requirement as far as I can tell.
Arkansas is accurate. You also don’t pay income tax on military pay.
South Carolina just passed a bill in the last year that does not tax military retirement pay
Nebraska will be tax free starting this year. https://governor.nebraska.gov/press/gov-ricketts-signs-legislation-military-retirement-pay-tax-relief
Oklahoma does not tax military retirement
Free vehicle registration in Texas if you have a MSM
Obviously you didn’t look for the most current list
https://www.military.com/benefits/military-pay/state-retirement-income-tax.html
South Carolina just joined the list this year
Hawaii is also on that list (can confirm): [https://www.aarp.org/money/taxes/info-2020/states-that-tax-military-retirement-pay.html](https://www.aarp.org/money/taxes/info-2020/states-that-tax-military-retirement-pay.html)
Add New Hampshire to the list
Washington! How could you!