Military Retirement Pay Tax Credit
Nonrefundable state income tax credit equal to 4.5% of federally taxable military retirement pay, effectively eliminating Utah tax on it.
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Apply directly through the official Utah agency.
About this benefit
Eligibility
Any individual receiving military retired pay (including reserve retirement) included in federal adjusted gross income. No disability rating required.
How to apply
Claimed on Utah state income tax return (Form TC-40).
Note
Cannot be combined with the general Retirement Credit for the same tax year.
Verified against official source
Last checked 2026-05-06 against incometax.utah.gov. Always confirm current rates and rules with the Utah state agency before applying.
Other Utah Tax Benefits
Military Survivor Benefit Plan Tax Credit
Nonrefundable tax credit for surviving spouses receiving SBP, RCSBP, or RSFPP annuities, offsetting Utah state tax.
Disabled Veteran Property Tax Exemption
Property tax exemption proportional to disability rating on up to $535,459 of taxable value for veterans rated 10%+.
Up to $535,459 exempt (proportional)
Vehicle Sales Tax Exemption (100% Disabled)
Exemption from sales tax on one vehicle purchase for veterans with 100% VA service-connected disability.
$1,800-$2,580 on $30,000 vehicle
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