Military Retirement Pay State Income Tax Exemption
Full exemption of military retirement pay and SBP payments from Ohio state income tax.
State BenefitOhioTax Benefits
Verified September 30, 2026 against tax.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
- September 30, 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
- Veterans
- Survivors
- Available to any veteran
- Ohio residency
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).
Verified information & sources
- Last verified
- September 30, 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.
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; 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 DeductionFull exclusion of military pay from state income taxActive duty service members stationed outside Ohio can deduct military pay from Ohio income tax.
- 100% Disabled Veteran Homestead Exemption (Partial Property Tax Reduction)~$870/yr (varies by county millage)Reduces taxable market value of a disabled veteran's home by $58,000 for tax year 2026 (annually adjusted for inflation per HB 33).