Biz Write-Offs LogoBiz Write-Offs

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.