Military retirement pay in Alaska
Varies
Does Alaska Tax Military Retirement Pay?
Short answer: No. Alaska has no state personal income tax, so military retired pay is not taxed. With no income tax, Alaska relies more on sales and property taxes; older homeowners get this break: Municipalities must exempt homes of residents 65+, 50%+ disabled veterans, and qualifying surviving spouses 60+.
Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Military retirement pay in Alaska
Varies
Individuals / Personal Taxes
No. Alaska has no state personal income tax, so military retired pay is not taxed. With no income tax, Alaska relies more on sales and property taxes; older homeowners get this break: Municipalities must exempt homes of residents 65+, 50%+ disabled veterans, and qualifying surviving spouses 60+.
Business justification
No. Alaska has no state personal income tax, so military retired pay is not taxed. With no income tax, Alaska relies more on sales and property taxes; older homeowners get this break: Municipalities must exempt homes of residents 65+, 50%+ disabled veterans, and qualifying surviving spouses 60+. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions