Free military money tool

Which states don't tax military pay, and what would switching save you?

You pay state taxes to your State of Legal Residence, not where you're stationed. Since 2022, federal law lets many servicemembers legally elect their duty-station state instead. Enter your pay off your LES and see the exact dollars.

$
Base pay + taxable special pays from your LES. Don't include BAH or BAS; allowances are never taxed. Need help reading yours? Decode your LES free →
Estimates cover state tax on your military pay only. A working spouse's income isn't modeled here.
Your State of Legal Residence, which is what most people call their "home of record."
Where you're currently stationed (PCS orders).
Under MSRRA you can also elect your spouse's state.

Estimates use each state's 2026 rates and standard deduction on your military pay alone: no credits, no local taxes. Educational estimate, not tax advice.

Home of record ≠ the state that taxes you

Your military pay is taxed by your State of Legal Residence (SLR), not by the state where you're stationed. That's the Servicemembers Civil Relief Act (50 U.S.C. §4001). "Home of record" is different: it's the state you entered the military from, it's fixed, and it has nothing to do with taxes. Since the Veterans Auto and Education Improvement Act of 2022, a servicemember and spouse may elect, for any tax year of the marriage, the residence of either spouse or the servicemember's permanent duty station. That means someone from a high-tax state stationed in Texas, Florida, or another no-tax state can often legally stop paying state income tax on their military pay by filing DD Form 2058. (The statute is written around married members; single members should confirm their path with legal assistance.)

Every state's treatment of active-duty military pay (2026)

How each state and the five US territories tax the active-duty pay of its own legal residents. Search for your state, filter by treatment, or click a column header to sort. Hover any badge for what it means.

State Active-duty pay Details

Frequently asked questions

Which states don't tax military pay?

Nine states have no income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. States including Arizona, Arkansas, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, Montana, New Mexico, North Dakota, Oklahoma, and Wisconsin have an income tax but fully exempt active-duty pay. Several more, including California, New York, and Pennsylvania, exempt military pay only while you're stationed outside the state.

Do I pay state taxes where I'm stationed or in my home state?

Your home state. Under the SCRA, active-duty pay is taxed by your State of Legal Residence, not your duty station. Being stationed in Texas doesn't make your pay tax-free by itself; you keep paying your legal-residence state until you legally change it.

Can I just claim Texas or Florida to stop paying state tax?

Only if you have a legal basis. Since the 2022 amendment to the SCRA, a servicemember and spouse can elect the duty-station state or either spouse's residence state for any tax year of the marriage, so a married member actually stationed in Texas can generally elect Texas. Single members should confirm their path with legal assistance, since the statute's election language is written around married couples. Claiming a no-tax state you've never lived in and aren't stationed in is tax evasion, and states audit for it.

Does BAH or BAS get taxed by my state?

No. BAH and BAS are allowances, not taxable income, federally or in any state. That's why this calculator asks only for your taxable pay (base pay plus taxable special pays), the amount in the "taxable wages" section of your LES.

What if I'm stationed in Guam, Puerto Rico, or overseas?

Your State of Legal Residence keeps taxing you (or not) exactly as before. A territory or foreign posting counts as being stationed outside your home state, which zeroes out state tax for members from states like California, New York, and Pennsylvania. Guam, the USVI, and the CNMI "mirror" the federal tax code (residents pay the territory at federal rates instead of the IRS, with no extra state-style layer), while Puerto Rico runs its own separate tax system. You can elect a territory duty station as your SLR just like a state; a foreign posting isn't electable.

What about military retirement pay?

Different rules, and better ones. As of 2026, nearly every state fully or partially exempts military retirement pay; only California (which now excludes the first $20,000) and Washington D.C. still meaningfully tax it. This calculator covers active-duty pay; a retirement mode is coming.

This is an educational estimate, not tax or legal advice. Figures approximate 2026 state rates and standard deductions applied to your military pay alone; they exclude other household income, credits, county/city income taxes, and state-specific adjustments. State residency and tax rules have conditions this tool simplifies. Verify with your state's revenue department, your installation's legal assistance office (free), or a licensed tax professional before changing your State of Legal Residence. Statutory basis: SCRA, 50 U.S.C. §4001, as amended by the Veterans Auto and Education Improvement Act of 2022 (P.L. 117-333); MSRRA. VetraFi is not a tax preparer.