Most Expensive States for Retired Military Service Members

Veterans can keep more of their military retirement pay by avoiding these high-taxed, most expensive states for retired service members.

American flag with blue sky in the background
(Image credit: Getty Images)

You can’t avoid paying federal tax on your military retirement pay since the IRS taxes that income as a pension. But you might be able to escape a state tax bill — as long as you don’t retire in one of the places on this list. When it comes to taxing Veterans, these are the most expensive places in the United States. 

States that tax military retirement pay in 2024

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Katelyn Washington
Former Tax Writer

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.