Military Personnel & State Returns

Special treatments of state tax laws for military personnel

An active duty military person may get special treatment under state tax laws. His or her state of residency is not determined in the same way.

I am a military personnel, which state is my home state?

It generally depends on what the service person established as a home state of record. This is originally based on where the person lived when they entered the service. Once this is established, the home or record does not change unless the service member changes it officially through the military personnel office.

How is military pay taxed on the state level?

Treatment of military pay is taxable to the home state of record only if it is taxed at all.

If the service member has income, such as a rental property or another job, from a state other than his home state, it is taxable in that state and may be taxable in the home of record state.

How are civilian spouses taxed?

The rules for military personnel above do not apply to civilian spouse. Any income attributable to that spouse is taxable in the state where he or she actually resides.

Number of days lived in state and tax returns

Some states have provisions where, even though a military member's home or record is in that state, if they live and are stationed in another state, and were not in their home state for more than a certain number of days, they may then be considered nonresidents and not be taxed on their military pay.