Military retirement pay in Pennsylvania
Varies
Does Pennsylvania Tax Military Retirement Pay?
Short answer: No. Pennsylvania fully exempts military retired pay, along with other qualifying retirement income, from state income tax. Other retirement income: Distributions from eligible employer retirement plans after meeting the plan's retirement age/years-of-service conditions are exempt, as are IRA distributions after age 59½. Early distributions are taxed to the extent they exceed contributions.
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 Pennsylvania
Varies
Individuals / Personal Taxes
No. Pennsylvania fully exempts military retired pay, along with other qualifying retirement income, from state income tax. Other retirement income: Distributions from eligible employer retirement plans after meeting the plan's retirement age/years-of-service conditions are exempt, as are IRA distributions after age 59½. Early distributions are taxed to the extent they exceed contributions.
Business justification
No. Pennsylvania fully exempts military retired pay, along with other qualifying retirement income, from state income tax. Other retirement income: Distributions from eligible employer retirement plans after meeting the plan's retirement age/years-of-service conditions are exempt, as are IRA distributions after age 59½. Early distributions are taxed to the extent they exceed contributions. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions