Military Retirement Income Partial Deduction
Partial deduction of military retirement pay from Idaho state income tax (age- and disability-based limits; not a full exemption).
State BenefitIdahoTax Benefits
Verified May 12, 2026 against tax.idaho.gov
At a glance
- Benefit type
- Tax Benefits — Idaho
- Who it's for
- Veterans, Survivors
- VA rating needed
- No rating requirement
- Estimated value
- Partial deduction (capped; 5.3% flat rate)
- Where it applies
- Idaho
- Last verified
- May 12, 2026
What is Military Retirement Income Partial Deduction?
Military Retirement Income Partial Deduction is a Idaho tax benefits benefit for veterans, survivors. Partial deduction of military retirement pay from Idaho state income tax (age- and disability-based limits; not a full exemption). The listed value is Partial deduction (capped; 5.3% flat rate).
Who qualifies
- Veterans
- Survivors
- Available to any veteran
- Idaho residency
Who is eligible
Eligibility
Military retirees who meet Idaho's age or disability threshold. Military pensions qualify if (any one): classified as disabled, OR age 62+, OR under 62 employed during the year with sufficient income requiring a federal return. (Note: standard age 65+/62+disabled rule applies to other federal/Idaho pensions, not military.) Must claim the deduction on Idaho Form 39R.
What Military Retirement Income Partial Deduction covers
Covers
A partial deduction (not a full exemption) from Idaho state income tax. The annual deduction is capped at statutory amounts that are adjusted each year by the Idaho State Tax Commission; the cap is reduced by any Social Security and Railroad Retirement benefits received. Survivor Benefit Plan (SBP) payments are treated the same way.
Tax rate
Idaho's flat income tax rate is 5.3% (HB 40, March 2025, retroactive to 2025 tax year and continuing for 2026), so each $1,000 of allowed deduction saves roughly $53/year.
How to apply for Military Retirement Income Partial Deduction
How to apply
Claimed on Idaho state income tax return using Form 39R.
Verified information & sources
- Last verified
- May 12, 2026
- Official source
- tax.idaho.gov
Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.
How VetUnlock verifies benefitsFrequently asked questions about Military Retirement Income Partial Deduction
Who qualifies for Military Retirement Income Partial Deduction?
Military Retirement Income Partial Deduction is for Veterans, Survivors; available to any veteran; idaho residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Income Partial Deduction worth?
The listed value is Partial deduction (capped; 5.3% flat rate). Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Income Partial Deduction?
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Military Retirement Income Partial Deduction?
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.