State Benefits for Military Retirees — VUB Financial Readiness Course

States With No Income Tax

These 9 states do not tax personal income, which means military pension, Social Security, TSP withdrawals, and investment income are not subject to state income tax.

Alaska Florida Nevada New Hampshire South Dakota Tennessee Texas Washington Wyoming

New Hampshire eliminated its interest and dividends tax for tax years beginning in 2025.

Military Retirement Pay — State Tax Treatment Snapshot

Category	Tax-Year 2025/2026 Planning Rule	Instructor Notes
No personal income tax	9 states. Listed above.	Income tax is zero, but property tax, sales tax, insurance, and housing costs can still be high.
Fully exempt military retired pay	28 states with income tax fully exempt military retired pay.	West Virginia is in this group; military retired pay has been exempt from WV income tax for tax years beginning after December 31, 2018.
Partial or conditional exemption	13 states use income limits, age rules, dollar caps, or other conditions.	Recent examples: California added a limited $20,000 exemption for eligible taxpayers; Vermont expanded to income-based full/partial relief; Georgia rises to a $65,000 exemption in tax year 2026.
Fully taxed jurisdiction	District of Columbia fully taxes military retired pay.	Among the 50 states, verify the current state fact sheet before calling any state "fully taxed"; this category has changed quickly.

Snapshot based on MyArmyBenefits/Soldier for Life January 2026 reporting. Verify current rules with the state tax agency or MyArmyBenefits before relocating.

Property Tax Exemptions for Veterans

All 50 states offer some form of property tax relief for veterans
Most require a VA disability rating (often 100% for full exemption)
Some states extend partial exemptions to veterans rated 10%+
Surviving spouses often qualify but must apply separately
Contact your county assessor's office or state DVA to apply

Notable Property Tax Examples

State	Exemption
Texas	100% disabled: full exemption
Florida	100% disabled: full exemption
Virginia	100% disabled: full exemption
West Virginia	Partial exemption for all veterans
California	Up to $150,000 assessed value

How to Find Your State Benefits

myarmybenefits.us.army.mil — State and territory military benefits fact sheets
va.gov/statedva.htm — State DVA directory (find your state's Department of Veterans Affairs)
tax.wv.gov — West Virginia Tax Division guidance for WV residents
Your local VSO — DAV, VFW, and American Legion posts can help you navigate state-specific benefits