Military retirement pay in Indiana
Varies
Does Indiana Tax Military Retirement Pay?
Short answer: No. Indiana fully exempts military retired pay from state income tax; the exemption was phased in and reached 100% in tax year 2022. Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed at Indiana's flat rate (plus county tax) with no general retirement exclusion.
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 Indiana
Varies
Individuals / Personal Taxes
No. Indiana fully exempts military retired pay from state income tax; the exemption was phased in and reached 100% in tax year 2022. Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed at Indiana's flat rate (plus county tax) with no general retirement exclusion.
Business justification
No. Indiana fully exempts military retired pay from state income tax; the exemption was phased in and reached 100% in tax year 2022. Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed at Indiana's flat rate (plus county tax) with no general retirement exclusion. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions