State Benefit·Ohio·🏛️Tax Benefits

Military Retirement Pay State Income Tax Exemption

Full exemption of military retirement pay and SBP payments from Ohio state income tax.

Verified May 12, 2026againsttax.ohio.gov

At a glance

Benefit type: Tax Benefits — Ohio
Who it's for: Veterans, Survivors
VA rating needed: No rating requirement
Estimated value: Varies by retirement pay (~$825/yr savings on $30K at 2.75%)
Where it applies: Ohio
Last verified: May 12, 2026

What is Military Retirement Pay State Income Tax Exemption?

Military Retirement Pay State Income Tax Exemption is a Ohio tax benefits benefit for veterans, survivors. Full exemption of military retirement pay and SBP payments from Ohio state income tax. The listed value is Varies by retirement pay (~$825/yr savings on $30K at 2.75%).

Who qualifies

VeteransSurvivors

Available to any veteran
Ohio residency

How to apply

Apply through the official Ohio agency.

Open application

Who is eligible

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.

What Military Retirement Pay State Income Tax Exemption covers

Estimated savings

At Ohio's 2026 flat 2.75% rate, a retiree with $30,000/year of qualifying military retirement pay saves roughly $825/year; savings scale with retirement income.

How to apply for Military Retirement Pay State Income Tax Exemption

How to apply

Claim the deduction on the Ohio IT 1040 Schedule of Adjustments (uniformed services retirement income line).

Open application Verify at official source

Verified information & sources

Last verified: May 12, 2026

Official source: tax.ohio.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; ohio 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 Varies by retirement pay (~$825/yr savings on $30K at 2.75%). 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 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 market value of a disabled veteran's home by $58,000 for tax year 2026 (annually adjusted for inflation per HB 33).

~$870/yr (varies by county millage)

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