States That Don't Tax Military Pay (2026)

Updated 2026-06-08

Where you claim legal residence determines whether your military pay is taxed by a state. Nine states have no state income tax at all, and many more fully exempt active-duty military pay.

States with no income tax (military pay included)

These nine states do not tax wage income, so military pay is state-tax-free:

• Alaska
• Florida
• Nevada
• New Hampshire
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

Because of this, many service members establish legal residence in a no-tax state (such as Texas or Florida) while stationed elsewhere — legal under the Servicemembers Civil Relief Act (SCRA).

States that exempt active-duty military pay

Beyond the nine no-tax states, a large and growing number of states fully exempt active-duty military pay from income tax even though they tax other income. The exact list and conditions change over time, so confirm with your state's current rules or a base legal/tax office.

How "state of legal residence" works

Thanks to the SCRA, you keep your state of legal residence (SLR / home of record domicile) when you move on military orders — you are not forced to switch to the state where you're stationed. Your SLR is the state that taxes your military pay (or doesn't).

This is general information, not tax advice. Verify your situation with a qualified tax professional or your installation's legal office.

Frequently asked questions

Which states don't tax military pay?

Nine states have no income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Many other states also fully exempt active-duty military pay.

Can I keep a no-tax state as my residence while stationed elsewhere?

Yes. Under the Servicemembers Civil Relief Act (SCRA) you keep your state of legal residence when you move on military orders.

Is military pay taxed federally?

Yes, basic pay and taxable special pays are subject to federal income tax, but BAH and BAS are tax-free.