Military retirement pay in New Jersey
Varies
Does New Jersey Tax Military Retirement Pay?
Short answer: No. New Jersey fully exempts U.S. armed forces retired pay from state income tax. The exemption does not currently cover USPHS or NOAA Corps retirees; bills to add them were pending in 2026. Other retirement income: Taxpayers 62+ (or disabled) with total income of $100,000 or less may exclude pensions, annuities, and IRA withdrawals up to $100,000 joint / $75,000 single / $50,000 married filing separately. A reduced percentage applies at $100,001–$150,000, with no exclusion above $150,000.
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 New Jersey
Varies
Individuals / Personal Taxes
No. New Jersey fully exempts U.S. armed forces retired pay from state income tax. The exemption does not currently cover USPHS or NOAA Corps retirees; bills to add them were pending in 2026. Other retirement income: Taxpayers 62+ (or disabled) with total income of $100,000 or less may exclude pensions, annuities, and IRA withdrawals up to $100,000 joint / $75,000 single / $50,000 married filing separately. A reduced percentage applies at $100,001–$150,000, with no exclusion above $150,000.
Business justification
No. New Jersey fully exempts U.S. armed forces retired pay from state income tax. The exemption does not currently cover USPHS or NOAA Corps retirees; bills to add them were pending in 2026. Other retirement income: Taxpayers 62+ (or disabled) with total income of $100,000 or less may exclude pensions, annuities, and IRA withdrawals up to $100,000 joint / $75,000 single / $50,000 married filing separately. A reduced percentage applies at $100,001–$150,000, with no exclusion above $150,000. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions