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Military retirement pay in Tennessee

Varies

Does Tennessee Tax Military Retirement Pay?

Short answer: No. Tennessee has no state personal income tax, so military retired pay is not taxed. With no income tax, Tennessee relies more on sales and property taxes; older homeowners get this break: Property Tax Relief reimburses part of taxes for 65+ or disabled owners with 2024 income up to $37,530; disabled veterans too.

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.