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State Benefit·Iowa·🏛️Tax Benefits

Military Retirement Pay State Income Tax Exemption

100% of military retired pay is exempt from Iowa state income tax.

Verified May 12, 2026againstrevenue.iowa.gov

At a glance

Benefit type
Tax Benefits — Iowa
Who it's for
Veterans, Survivors
VA rating needed
No rating requirement
Estimated value
~$1,140/year on $30,000 retirement pay (3.8% flat rate)
Where it applies
Iowa
Last verified
May 12, 2026

What is Military Retirement Pay State Income Tax Exemption?

Military Retirement Pay State Income Tax Exemption is a Iowa tax benefits benefit for veterans, survivors. 100% of military retired pay is exempt from Iowa state income tax. The listed value is ~$1,140/year on $30,000 retirement pay (3.8% flat rate).

Who qualifies

VeteransSurvivors
  • Available to any veteran
  • Iowa residency

How to apply

Apply through the official Iowa agency.

Open application

Who is eligible

Eligibility

Any veteran receiving military retirement pay from federal service in the armed forces, reserves, or National Guard. Available to both Iowa residents and nonresidents. No disability rating required. Per Iowa Code 422.7(31A) and (31B), retroactive to tax years beginning on or after January 1, 2014, regardless of age.

What Military Retirement Pay State Income Tax Exemption covers

Covers

Full exclusion of military retired pay from Iowa state income tax. Also applies to military survivor benefits received under 10 U.S.C. 1447.

How to apply for Military Retirement Pay State Income Tax Exemption

How to apply

Claimed on Iowa individual income tax return.

Open applicationVerify at official source

Verified information & sources

Last verified: May 12, 2026

Official source: revenue.iowa.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.

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Frequently asked questions about Military Retirement Pay State Income Tax Exemption

Who qualifies for Military Retirement Pay State Income Tax Exemption?▾
Military Retirement Pay State Income Tax Exemption is for Veterans, Survivors; available to any veteran; iowa residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Pay State Income Tax Exemption worth?▾
The listed value is ~$1,140/year on $30,000 retirement pay (3.8% flat rate). Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Pay State Income Tax Exemption?▾
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 Pay State Income Tax Exemption?▾
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.

Other Iowa Tax Benefits

Military Service Property Tax Exemption

Up to $4,000 reduction in taxable value for honorably discharged veterans who served 18+ months.

$4,000 off taxable value

Disabled Veteran Homestead Property Tax Credit

100% exemption from property taxes on homestead for 100% permanently disabled veterans.

100% property tax exemption

See every benefit you qualify for in Iowa

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