State Military Law With Largest
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How to fill out Special Military Power Of Attorney?
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FAQ
However, by law servicemembers are able to maintain a legal residence in one state even if they are stationed in another. This means that if you legally reside in a state with no income tax, then you can avoid paying state income taxes even if you are currently stationed in one with a high state income tax.
Under the SCRA, servicemembers retain the state they claimed when they entered active duty as their state of legal residence unless they take affirmative steps to change their state of legal residence.
So, both the non-military income earned by you and the military income earned by your spouse are exempt from state tax in the duty-station state. This makes military tax filing much simpler overall. Both of you still have to pay income and property taxes in your home state.
If you're in the military, you're probably taxed in your state of legal residence rather than in the state where you're stationed. Filing taxes while deployed can depend on your state of residence as well. To establish legal residence in a state, you usually must prove you live ? and intend to continue living ? there.
States that don't tax military retirement pay Alabama. Arizona. Arkansas. Connecticut. Hawaii. Illinois. Indiana. Iowa.