Military Retirement Pay State Income Tax Exemption
100% of military retired pay is exempt from Iowa state income tax.
State BenefitIowaTax Benefits
Verified September 30, 2026 against revenue.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
- September 30, 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
- Veterans
- Survivors
- Available to any veteran
- Iowa residency
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.
Verified information & sources
- Last verified
- September 30, 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.
How VetUnlock verifies benefitsFrequently 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$4,000 off taxable valueUp to $4,000 reduction in taxable value for honorably discharged veterans who served 18+ months.
- Disabled Veteran Homestead Property Tax Credit100% property tax exemption100% exemption from property taxes on homestead for 100% permanently disabled veterans.