careers/retirement/military_retirement_taxes_2007hbml
Retirement & Taxes
Most retirement pay is subject to federal income taxes. So are SBP benefits. Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax.
VA benefits are not taxable because they generally are for disabilities. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
Individual states have their own rules regarding military retired pay. Some follow federal guidelines. Others have no tax on military retired pay or grant exemptions.
For guidance, check with the revenue service in the state where you claim residency. Retirees also can have state income taxes withheld from their military retirement pay.
Digg
Contests and Promotions
Give The Gift Of Air Force Times
Holiday gift shopping has never been easier! An ideal gift for our men and women stationed overseas. Order your gift subscription here.
Marketplace
Military Times Gear Shop
Converse 8 Sage Green Composite Safety Toe BootAuthentic Converse® athletic fit, comfort and performance with tactical design and non-metallic safety toe.
Price: $122.99
Military Discounts
Save on your purchases!
In honor of your military service, you can find regular and name brand products at a special discount.






