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The 10 Least Tax-Friendly States for Military Retirees

Courtesy Department of Defense

If you spent your career in the military, you’ve probably lived all over the U.S. and around the world. But before you put down roots in retirement, find out how much of your hard-earned pension will be taxed. You’ll pay tax to the federal government on military retirement pay that’s based on age or length of service (disability pensions might not be taxed). With state taxes, though, it isn’t always so clear.

Many states provide special tax breaks for military retirees or for retirement income in general. And, of course, some states don’t even have an income tax. But some other states aren’t so generous when it comes to helping retired veterans at tax time.


We’ve identified 9 states, and Washington, D.C., with not-too-friendly tax rules for military pensions. These states may tax at least part of your pension, and some tax the entire amount. We’ve listed the least tax-friendly of these states first. Take a look.

SEE ALSO: Best States for Low Taxes: 50 States Ranked for Taxes, 2018


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