Congratulations to all military retirees in the State of Ohio! Veterans who receive military pensions no longer will have state income taxes taken from their monthly retirement checks.

On 20 Dec 2007, Ohio Governor Ted Strickland signed legislation that exempts military pensions from state income tax. House Bill 372 allows tax exemption of military retirement pay, along with other benefits including prevention measures for discrimination against veterans.

Ohio joins a long list of other states that exempt some or all state income taxes for military retirement pay:

  • Alabama
  • Alaska
  • Arkansas*
  • Colorado*
  • Delaware*
  • Florida
  • Georgia*
  • Hawaii
  • Illinois
  • Indiana*
  • Iowa*
  • Kansas
  • Kentucky*
  • Louisiana
  • Maryland*
  • Massachusetts
  • Michigan
  • Mississippi
  • Missouri*
  • Nevada
  • New Hampshire
  • New Jersey*
  • New York
  • North Carolina*
  • North Dakota*
  • Ohio (tax year 2008)
  • Oklahoma* 
  • Oregon*
  • Pennsylvania
  • South Carolina*
  • South Dakota
  • Tennessee
  • Texas
  • Washington
  • Washington DC *
  • West Virginia*
  • Wisconsin
  • Wyoming

*These states have some exclusions based on age, income level, or amount of military retirement pay excluded from taxes. For more information be sure to check with your state’s tax board.