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State Benefit·Utah·🏛️Tax Benefits

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.

Verified May 12, 2026againstincometax.utah.gov

At a glance

Benefit type
Tax Benefits — Utah
Who it's for
Veterans, Survivors
VA rating needed
No rating requirement
Estimated value
4.5% of retirement pay
Where it applies
Utah
Last verified
May 12, 2026

What is Military Retirement Pay Tax Credit?

Military Retirement Pay Tax Credit is a Utah tax benefits benefit for veterans, survivors. Nonrefundable state income tax credit equal to 4.5% of federally taxable military retirement pay, effectively eliminating Utah tax on it. The listed value is 4.5% of retirement pay.

Who qualifies

VeteransSurvivors
  • Available to any veteran
  • Utah residency

How to apply

Apply through the official Utah agency.

Open application

Who is eligible

Eligibility

Any individual receiving military retired pay (including reserve retirement) included in federal adjusted gross income. No disability rating required.

Important to know

Cannot be combined with the general Retirement Credit (code 18) for the same tax year.

How to apply for Military Retirement Pay Tax Credit

How to apply

Claimed as code AJ on Utah Form TC-40A, Part 3 (worksheet in TC-40A instructions).

Open applicationVerify at official source

Verified information & sources

Last verified: May 12, 2026

Official source: incometax.utah.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.

Frequently asked questions about Military Retirement Pay Tax Credit

Who qualifies for Military Retirement Pay Tax Credit?▾
Military Retirement Pay Tax Credit is for Veterans, Survivors; available to any veteran; utah residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Pay Tax Credit worth?▾
The listed value is 4.5% of 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 Credit?▾
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 Credit?▾
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 Utah Tax Benefits

Military Survivor Benefit Plan Tax Credit

Nonrefundable tax credit (code AA on TC-40A) for survivor benefits paid due to a service member's death on active duty, or a reserve member's service-connected death during inactive duty training.

Disabled Veteran Property Tax Exemption

Property tax exemption on up to $535,459 of taxable value for veterans with 10%+ service-connected disability, prorated by disability percentage.

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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