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.
Military retirement pay in Tennessee
Varies
Individuals / Personal Taxes
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.
Business justification
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.
Category
- Personal Tax Deductions