Military Retirement Pay Tax Exemption
Military retirement pay is completely exempt from Pennsylvania state income tax, including SBP and RCSBP annuities.
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Apply directly through the official Pennsylvania agency.
About this benefit
Eligibility
Any military retiree receiving retired pay. No disability rating or wartime service required. PA resident filing PA taxes.
Covers
Military retirement pay, SBP, and RCSBP annuities. PA flat income tax rate is 3.07%.
Note
TSP distributions are still subject to state taxes.
Verified against official source
Last checked 2026-04-30 against www.pa.gov. Always confirm current rates and rules with the Pennsylvania state agency before applying.
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