Military Retirement Pay State Income Tax Exemption
Full exemption of military retirement pay and SBP payments from Ohio state income tax.
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Apply directly through the official Ohio agency.
About this benefit
Eligibility
Any military retiree receiving retirement pay or Survivor Benefit Plan (SBP) annuity. No income limits, no age restrictions. Must file Ohio state taxes as a resident.
Estimated savings
A retiree receiving $30,000/year saves roughly $1,000-$1,500 in Ohio state income tax annually.
How to apply
Claim the deduction on Ohio IT 1040 (Schedule of Adjustments).
Verified against official source
Last checked 2026-05-04 against tax.ohio.gov. Always confirm current rates and rules with the Ohio state agency before applying.
Other Ohio Tax Benefits
Active Duty Pay State Income Tax Deduction
Active duty service members stationed outside Ohio can deduct military pay from Ohio income tax.
Full exclusion of military pay from state income tax
100% Disabled Veteran Homestead Exemption (Partial Property Tax Reduction)
Reduces taxable value of a disabled veteran's home by $52,300 (2025 inflation-adjusted amount).
~$785/yr (varies by county millage)
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