Many states choose not to include military retirement pay in state income taxes, whether it's to acknowledge your service to your country or to make that state a more attractive place for veterans to live. Some
That leaves just three states – California, Vermont, and Virginia – that do fully tax military retirement pay. Of course, there is nothing necessarily wrong with this fact, but it’s helpful to know so you can decide for yourself whether moving to a different part of the country is worth...
Although Washington D.C. isn't a state, it is one of the most expensive places in the U.S. for retired Veterans to live. Like California, theDistrict of Columbiafully taxes military retirement pay. (As of 2025, California and DC are the only places that fully tax military re...
Military Retirement Pay Taxation Military retired pay (MRP) and Survivor Benefit Plan (SBP) payments are another important area of financial concern forveterans and their families. While these programs are fully exempt from taxation in states like Texas, Illinois, Florida, New York, and others, yo...
YATI Tip:People born before 1953 qualify for a Utah tax credit of up to $450 if they don’t claim either the credit for Social Security benefits or for military retirement income. Sales Taxes—Sales taxes are a little on the high side in Utah. There’s a 4.85% state sales tax, 1.25...
Pensions:Taxable (military pensions are tax-exempt) More:Arkansas State Tax Guide Sponsored Content (Image credit: Getty Images) How much will my retirement be taxed in California? Californiais ranked by Kiplinger as one of theworst states to retirewhen it comes to taxes. Some retirees might pa...
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Taxes:New Hampshire is unique in that it has no income or sales tax. However, the state imposes a 5% tax on interest and dividend income. Property taxes in New Hampshire are among the highest in the nation, varying by locality. Services:Property taxes are the primary funder of public serv...
If you live in a state that doesn't charge a sales tax, consider yourself lucky, since 45 of the 50 states do charge the tax on goods you purchase there. Watch this video to find out more about shopping in tax free states and how this may affect your tax