Military retirement pay in Utah
Varies
Does Utah Tax Military Retirement Pay?
Short answer: No. Utah offsets the tax on military retired pay with a nonrefundable Military Retirement Credit equal to the flat tax rate times taxable military retirement pay (4.5% for 2025), which zeroes out the tax on that income. The credit covers survivors' military retirement pay but can't be combined with Utah's $450 retirement credit. we did not confirm this on an official page. Some sources list Utah as partial because the exemption works through a credit. Other retirement income: Pensions and 401(k)/IRA withdrawals are taxed at Utah's flat rate. A retirement credit of up to $450 is available only to taxpayers born on or before December 31, 1952, and phases out above $25,000 single / $32,000 joint modified AGI.
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 Utah
Varies
Individuals / Personal Taxes
No. Utah offsets the tax on military retired pay with a nonrefundable Military Retirement Credit equal to the flat tax rate times taxable military retirement pay (4.5% for 2025), which zeroes out the tax on that income. The credit covers survivors' military retirement pay but can't be combined with Utah's $450 retirement credit. we did not confirm this on an official page. Some sources list Utah as partial because the exemption works through a credit. Other retirement income: Pensions and 401(k)/IRA withdrawals are taxed at Utah's flat rate. A retirement credit of up to $450 is available only to taxpayers born on or before December 31, 1952, and phases out above $25,000 single / $32,000 joint modified AGI.
Business justification
No. Utah offsets the tax on military retired pay with a nonrefundable Military Retirement Credit equal to the flat tax rate times taxable military retirement pay (4.5% for 2025), which zeroes out the tax on that income. The credit covers survivors' military retirement pay but can't be combined with Utah's $450 retirement credit. we did not confirm this on an official page. Some sources list Utah as partial because the exemption works through a credit. Other retirement income: Pensions and 401(k)/IRA withdrawals are taxed at Utah's flat rate. A retirement credit of up to $450 is available only to taxpayers born on or before December 31, 1952, and phases out above $25,000 single / $32,000 joint modified AGI. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions