Military Retirement Pay Tax Exemption
Military retirement pay is completely exempt from Pennsylvania state income tax, including SBP and RCSBP annuities.
State BenefitPennsylvaniaTax Benefits
Verified May 12, 2026 against pa.gov
At a glance
- Benefit type
- Tax Benefits — Pennsylvania
- Who it's for
- Veterans
- VA rating needed
- No rating requirement
- Estimated value
- 3.07% savings on retirement pay
- Where it applies
- Pennsylvania
- Last verified
- May 12, 2026
What is Military Retirement Pay Tax Exemption?
Military Retirement Pay Tax Exemption is a Pennsylvania tax benefits benefit for veterans. Military retirement pay is completely exempt from Pennsylvania state income tax, including SBP and RCSBP annuities. The listed value is 3.07% savings on retirement pay.
Who qualifies
- Veterans
- Available to any veteran
- Pennsylvania residency
Who is eligible
Eligibility
Any military retiree receiving retired pay. No disability rating or wartime service required. PA resident filing PA taxes.
What Military Retirement Pay Tax Exemption covers
Covers
Military retirement pay, SBP, and RCSBP annuities. PA flat income tax rate is 3.07%.
Important to know
TSP distributions are still subject to state taxes.
Verified information & sources
- Last verified
- May 12, 2026
- Official source
- pa.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 Tax Exemption
Who qualifies for Military Retirement Pay Tax Exemption?
Military Retirement Pay Tax Exemption is for Veterans; available to any veteran; pennsylvania residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Pay Tax Exemption worth?
The listed value is 3.07% savings on retirement pay. Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Pay 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 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.