Military Retirement Pay State Income Tax Exemption
100% of military retired pay is exempt from Iowa state income tax.
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Apply directly through the official Iowa agency.
About this benefit
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.
Covers
Full exclusion of military retired pay from Iowa state income tax. Also applies to military survivor benefits under 10 U.S.C. 1447.
How to apply
Claimed on Iowa individual income tax return.
Verified against official source
Last checked 2026-05-05 against revenue.iowa.gov. Always confirm current rates and rules with the Iowa state agency before applying.
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
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