Military retirement pay in Texas
Varies
Does Texas Tax Military Retirement Pay?
Short answer: No. Texas has no state personal income tax, so military retired pay is not taxed. With no income tax, Texas relies more on sales and property taxes; older homeowners get this break: Owners 65+ or disabled get an extra $60,000 school exemption and a school tax ceiling that freezes their school taxes.
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 Texas
Varies
Individuals / Personal Taxes
No. Texas has no state personal income tax, so military retired pay is not taxed. With no income tax, Texas relies more on sales and property taxes; older homeowners get this break: Owners 65+ or disabled get an extra $60,000 school exemption and a school tax ceiling that freezes their school taxes.
Business justification
No. Texas has no state personal income tax, so military retired pay is not taxed. With no income tax, Texas relies more on sales and property taxes; older homeowners get this break: Owners 65+ or disabled get an extra $60,000 school exemption and a school tax ceiling that freezes their school taxes. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions