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State Tax Information
Military.com | January 13, 2006
Below is information on state income tax rules, organized alphabetically by state. Information on U.S. territories and possessions is included at the bottom of the list. ALABAMA Alabama Department of Revenue Individual and Corporate Tax Division P.O. Box 327465 Montgomery, AL 36132-7465 (334) 242-1170 Forms: (334) 242-9681 Electronic filing: (334) 242-2117 Refund: (334) 353-2540 Website: http://www.ador.state.al.us Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: First $25,000 of severance pay (including Unemployment compensation, termination pay or income from a supplemental income plan) is exempt. Retired pay/survivor benefits: Not taxed Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from an Alabama source, he may be required to file Alabama Form 40NR; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 5 percent Deadline: April 17 ALASKA State of Alaska Department of Revenue State Office Building 333 W. Willoughby Ave. 11th Floor, Side B P.O. Box 110420 Juneau, AK 99811-0420 (907) 465-2320/2375 Website: http://www.revenue.state.ak.us No state income tax. Legal residents are eligible for the Permanent Fund Dividend. Check Revenue Department´s Web site for more information. ARIZONA Arizona Department of Revenue Taxpayer Information and Assistance P.O. Box 29086 Phoenix, AZ 85038-9086 (602) 255-3381 Forms: (602) 542-4260 Forms by Fax: (602) 542-3756 Website: http://www.revenue.state.az.us Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Up to $2,500 of military retirement pay and/or survivor benefits excluded. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from an Arizona source, he may be required to file Arizona Form 140NR; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 5.17 percent Deadline: April 17 ARKANSAS Arkansas Department of Finance and Administration Individual Income Tax Section Room 110, Ledbetter Seventh and Wolfe streets Little Rock, AR 72201 (501) 682-7250 Forms: (501) 682-1100 Refund: (800) 438-1992 Website: http://www.state.ar.us/dfa/taxes/ Military income exemptions: Up to $6,000 of military pay or allowance excluded. The first $6,000 of military disability income is excluded. Otherwise, follows federal tax rules. Exit bonuses/separation pays: Up to $6,000 of exit or separation pay excluded. Retired pay/survivor benefits: Up to $6,000 of federal retirement pay and/or survivor benefits excluded. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from an Arkansas source, he may be required to file Arkansas Form AR1000NR; military income is included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 7 percent Deadline: May 17 CALIFORNIA California Franchise Tax Board P.O. Box 942840 Sacramento, CA 94240-0040 (800) 338-0505 (automated) (800) 852-5711 Website: http://www.ftb.ca.gov Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Follows federal tax rules. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a California source, he may be required to file California Schedule CA 540 NR; military income is included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 9.3 percent Deadline: April 17 COLORADO Colorado Department of Revenue 1375 Sherman St. Denver, CO 80261 (303) 238-7378 Forms: (303) 238-3278 Refund: (303) 232-2438 Website: http://www.revenue.state.co.us/ Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Up to $20,000 of retired pay is exempt if recipient is age 55 or older. Up to $24,000 of retired pay is exempt if recipient is 65 and older. Up to $20,000 is exempt regardless of age of widowed spouse and/or orphan if they are receiving the pension as the result of the death of the individual who earned it. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Colorado source, he may be required to file Colorado Form 104PN; military income is included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? No Maximum tax rate: 4.63 percent flat tax Deadline: April 17 CONNECTICUT Taxpayer Services Division Department of Revenue Services 25 Sigourney St. Hartford, CT 06106-5032 In state: (800) 382-9463 Out of state: (860) 297-5962 Refund: (800) 382-9463 Website: http://www.drs.state.ct.us/ Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Follows federal tax rules. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Connecticut source, he may be required to file Connecticut Form CT-1040NR/PY; military income is included in figuring the tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes, under certain conditions. Maximum tax rate: 4.5 percent Deadline: April 17 DELAWARE Delaware Division of Revenue 820 N. French St. Wilmington, DE 19801 (302) 577-8200 Fax: (302) 577-8202 Electronic filing: (302) 577-8461 Website: http://www.state.de.us/revenue Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Up to $2,000 of military retirement excluded for individuals under age 60; $12,500 if 60 or older. Survivor benefits are taxable. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Delaware source, he may be required to file Delaware Schedule 200-02 NR; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 5.95 percent Deadline: April 30 DISTRICT OF COLUMBIA District of Columbia Government Office of Tax and Revenue 941 N. Capitol St. N.E. First Floor Washington, DC 20002 (202) 727-4829 Website: http://cfo.washingtondc.gov/main.asp Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Up to $3,000 of military pay excluded for individuals 62 or older. Survivor benefits are taxable. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filings: District does not tax nonresidents. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: $1,400, plus 9.3 percent of taxable income over $20,000. Deadline: April 17 FLORIDA Florida Department of Revenue Taxpayer Services 1379 Blountstown Highway Tallahassee, FL 32304-2716 (850) 922-4827/4826 Taxpayer Services: (850) 488-6800; (800) 352-3671 (Florida only) Forms: (850) 488-8422 Forms Fax: (850) 922-2208 Refund: (850) 488-8937 Website: http://www.state.fl.us/dor/ No state income tax Legal residents are subject to a tax on intangible assets such as stocks, bonds or mutual funds and must file Florida tax form DR-601I if they owe more than $60. The tax is levied on the value of the assets as of Jan. 1 of each tax year. For single filers, the first $20,000 is exempt. After that, the tax rate is $1 per $1,000. For joint filers, the first $40,000 is exempt. After that, the rate is $1 per $1,000. Deadline: June 30 GEORGIA Georgia Department of Revenue 1800 Century Center Blvd. Atlanta, GA 30345 (404) 417-4477 Forms: (404) 417-6245 Website: http://www.state.ga.us/departments/dor/ Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Up to $14,500 of military retirement income excluded for individuals age 62 or older or those permanently and totally disabled; survivor benefits are taxable. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filings: If the military nonresident has nonmilitary income from a Georgia source, he may be required to file Georgia Form 500; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? No, unless one spouse is a Georgia resident and the other is not. Maximum tax rate: 6 percent of the taxable income over $5,000, $7,000 or $10,000, depending on filing status. Deadline: April 17 HAWAII Hawaii Department of Taxation P.O. Box 3559 Honolulu, HI 96811-3559 (800) 222-3229 Forms: (800) 222-7572 Website: http://www.state.hi.us/tax/ Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Not taxed. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Hawaii source, he may be required to file Hawaii tax form N-15; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 8.3 percent Deadline: April 20 IDAHO Taxpayer Services Idaho State Tax Commission P.O. Box 36 Boise, ID 83722-0410 (208) 334-7660 (800) 972-7660 Refund: (888) 228-5770 Website: http://www.state.id.us/tax/ Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Follows federal tax rules. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from an Idaho source, he may be required to file Idaho tax form 43; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? No Maximum tax rate: 7.8 percent Deadline: April 17 ILLINOIS Illinois Department of Revenue Taxpayer Correspondence P.O. Box 19044 Springfield, IL 62794-9044 (800) 732-8866 Forms: (800) 356-6302 Website: http://www.revenue.state.il.us Military income exemptions: Does not tax active-duty military income. See Illinois tax publication 102, ˆIllinois filing requirements for military personnel,˜ for details. Exit bonuses/separation pays: Not taxed. See Illinois tax publication 102, ˆIllinois filing requirements for military personnel,˜ for details. Retired pay/survivor benefits: Not taxed. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from an Illinois source, he may be required to file Illinois IL 10-40 and Schedule NR; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 3 percent Deadline: April 17 INDIANA Indiana Department of Revenue Taxpayer Services Division Indiana Government Center 100 N. Senate Ave., No. 105 Indianapolis, IN 46204 (317) 232-2240 Forms by mail: (317) 615-2581 Forms by Fax: (317) 233-2329 Forms by e-mail: pfrequest@dor.state.in.us Refund: (317) 233-4018 Website: http://www.ai.org/dor/index.html Military income exemptions: Up to $2,000 of military income is excluded. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Servicemember or surviving spouse (if 60 on the last day of the tax year) is entitled to a deduction of up to $2,000 of military retirement or survivor benefits. If you received both military and retirement pay or survivor benefits in the same tax year, you cannot exclude more than $2,000. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from an Indiana source, he may be required to file Indiana IT-40PNR; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? No Maximum tax rate: 3.4 percent Deadline: April 17 IOWA Iowa Department of Revenue and Finance Taxpayer Services P.O. Box 10457 Des Moines, IA 50306-0457 In state: (800) 367-3388 Out of state: (515) 281-3114 Refund: (515) 281-4966 In state: (800) 572-3944 Website: http://www.state.ia.us/tax Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Up to $12,000 excluded for joint filers and up to $6,000 for all other filing statuses for those 55 and older, disabled or surviving spouse of qualifying person. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income of more than $1,000 from an Iowa source, he must file Iowa forms IA1040 and IA126; military income is included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 8.98 percent Deadline: April 30 KANSAS Kansas Department of Revenue Tax Assistance Docking State Office Building Room 150 915 S.W. Harrison St. Topeka, KS 66612 In state: (785) 368-8222 Toll free: (877) 526-7738 Website: http://www.ink.org/public/kdor/ Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Not taxed. Accept computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Kansas source, he may be required to file Kansas Schedule S, Part B; military income is included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? No Maximum tax rate: 6.45 percent of excess over $30,000/$60,000, depending on filing status. Deadline: April 17 KENTUCKY Kentucky Revenue Cabinet Taxpayer Assistance 200 Fair Oaks Lane Frankfort, KY 40620 (502) 564-4581 Forms: (502) 564-3658 Refund: (502) 564-1600 Website: http://revenue.state.ky.us/revhome.htm Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Not taxed. If retired after 1997, subject to Schedule P taxation if amount exceeds $38,775. See Kentucky form Schedule P. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Kentucky source, he may be required to file Kentucky Form 740-NP; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 6 percent flat tax Deadline: April 17 LOUISIANA Louisiana Department of Revenue P.O. Box 3440 Baton Rouge, LA 70821-3440 (225) 219-0102 Forms: (225) 219-2113 Refund: (888) 829-3071 Website: http://www.rev.state.la.us/ Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Not taxed. Accepts computer forms? Yes Allows electronic filing: Yes Nonresident filing: If the military nonresident has nonmilitary income from a Louisiana source, he may be required to file Louisiana IT-540B; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? No Maximum tax rate: 6 percent Deadline: May 17 MAINE Maine Revenue Services Income Tax Assistance 24 State House Station Augusta, ME 04333-0024 (207) 626-8475 Forms: (207) 624-7894 Refund: (207) 624-7875/626-8461 Website: http://www.state.me.us/revenue/ Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Follows federal tax rules. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income of more than $6,000 from a Maine source, he may be required to file Maine 1040-ME; military income is included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes, under certain circumstances. Maximum tax rate: 8.5 percent Deadline: April 17 MARYLAND Revenue Administration Division 110 Carroll St. Annapolis, MD 21411 Central Maryland: (410) 260-7980 Others: (800) 638-2937 Refund: (410) 260-7701 (central Maryland); (800) 218-8160 (others) Website: http://www.marylandtaxes.com/ Military income exemptions: Up to $15,000 of military pay may be excluded if attributable to service outside the United States or its possessions; otherwise, follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Up to $2,500 may be exempt if you are over 55 and were enlisted and meet limit on gross income; some military retirement pay also may be excluded for those who are 65 or older or totally disabled; survivor benefits are taxable. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Maryland source, he may be required to file Maryland Form 505; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes, only if spouses have different taxing periods or areas. Maximum tax rate: 4.8 percent (Maryland has a local or ˆpiggyback˜ tax based on the county of residence that may make the maximum tax rate higher; nonresidents are not required to pay piggyback tax.) Deadline: April 17 MASSACHUSETTS Massachusetts Taxpayers Assistance P.O. Box 7010 Boston, MA 02204 (617) 887-6367 Toll-free in Massachusetts: (800) 392-6089 Website: http://www.massdor.com Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Not taxed Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from Massachusetts source, he may be required to file Massachusetts Form 1-NR/PY; military income is included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 5.3 percent for 2002 tax year; rate will be reduced to 5 percent for 2003 Deadline: April 17 MICHIGAN Michigan Department of Treasury Treasury Building Lansing, MI 48922 (800) 827-4000 Forms: (800) 367-6263 Refund: (800) 827-4000 Website: http://www.treas.state.mi.us Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Exempt if classified as military compensation. Retired pay/survivor benefits: Retired pay is exempt. Survivor benefits are exempt if the amounts are exempt from federal income tax or classified as military compensation or military retirement pay. Military retirement benefits that pass to the spouse of a deceased member of the military are exempt. Retirement benefits passing to other beneficiaries are taxed. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Michigan source, he may be required to file Michigan Schedule NR; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? No Maximum tax rate: 4.1 percent flat tax Deadline: April 17 MINNESOTA Minnesota Department of Revenue Individual Income Tax Division Mail Station 5510 St. Paul, MN 55146-5510 (651) 296-3781 (800) 652-9094 Refund: (651) 296-4444 Website: http://www.taxes.state.mn.us Military income exemptions: In general, follows federal tax rules. However, all active-duty members and Guard and reserve members who have received federal orders for active duty who are residents of Minnesota are treated as nonresidents of Minnesota for income tax purposes for the period of time they are stationed outside the state. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Follows federal tax rules. Accept computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Minnesota source, he may be required to file Minnesota Form M1 and M-1NR; military income is included in figuring tax rate on nonmilitary income if you are a resident of Minnesota. Permits separate returns even if a joint federal return is filed? No Maximum tax rate: 7.85 percent Deadline: April 17 MISSISSIPPI Mississippi Tax Commission P.O. Box 1033 Jackson, MS 39215-1033 (601) 923-7089 Forms: (601) 923-7815 Refund: (601) 923-7801 Website: http://www.mstc.state.ms.us Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Retired pay is exempt after Jan. 1, 1994. The exemption also is available to the spouse or other beneficiary at the death of the primary retiree. Widows´ pensions received from the VA are not taxable. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Mississippi source, he may be required to file Form 80-205; military income is not included in figuring tax rate on nonmilitary income. Permit separate returns even if a joint federal return is filed? Yes Maximum tax rate: 5 percent Deadline: April 17 MISSOURI Division of Taxation and Collection Individual Income Tax P.O. Box 2200 Jefferson City, MO 65105-2200 (573) 751-3505 Forms: (800) 877-6881 Refund: (800) 411-8524 Website: http://dor.mo.gov/tax/ Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: For individuals with a modified state adjusted gross income of less than $25,000 or a married couple with a combined income of $32,000, a government pension exemption of up to $6,000 is allowed. If a husband and wife each receive a government pension, each can qualify for an exemption of up to $6,000. SBP benefits are taxed following federal rules. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Missouri source, he may be required to file form MO-1040C or MO-1040 a long with MO-NRI; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? No Maximum tax rate: 6 percent Deadline: April 17 MONTANA Montana Department of Revenue P.O. Box 5805 Helena, MT 59604 (406) 444-6900 Website: http://www.mt.gov/revenue Military income exemptions: Military income received under Title 10 is fully exempt. The Guard/Reserve pay received under this title is also exempt. Guard/Reserve pay received under Title 32 is fully taxable. A copy of the military orders must be attached to the return if the taxpayer is claiming exempt income. Otherwise, follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: If federal adjusted gross income is less than $30,000, the first $3,600 of retirement benefits are fully excludable. Exclusion is phased out at $2 for every $1 earned for federal adjusted gross income between $30,000 and $31,800. If federal adjusted gross income exceeds $31,800 ($33,600 for married couple filing jointly), retirement benefits are fully taxable. Survivor benefits are taxed following federal tax rules. Benefits paid to survivor as pension and designated as such on Form 1099-R qualify for retirement exclusion. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Montana source, he may be required to file Form 2 Long; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 11 percent, minus $2,154 Deadline: April 17 NEBRASKA Department of Revenue 301 Centennial Mall S. P.O. Box 94818 Lincoln, NE 68509-4818 (800) 742-7474 Website: http://www.revenue.state.ne.us Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Follows federal tax rules. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Nebraska source, he may be required to file form 1040N/Schedule 3; military income is included in figuring tax rate on nonmilitary income. Permit separate returns even if a joint federal return is filed? Yes Maximum tax rate: 6.68 percent Deadline: April 17 NEVADA Department of Taxation 1550 E. College Parkway Suite 115 Carson City, NV 89706 (775) 687-4820 Website: http://tax.state.nv.us No state income tax NEW HAMPSHIRE Document Processing Division P.O. Box 637 Concord, NH 03302-0637 (603) 271-2186 Website: http://www.state.nh.us/revenue No earned income tax Taxable: 5 percent tax on interest and dividend income over $2,400 for singles or $4,800 for married persons filing jointly Accepts computer forms? No Allows electronic filing? No Deadline: April 17 NEW JERSEY Division of Taxation P.O. Box 281 Trenton, NJ 08695-0281 (609) 292-6400 Forms: (609) 826-4400 Refund: (800) 882-6597 Website: http://www.state.nj.us/treasury/taxation Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: If coded as a "mustering out" payment, they are not taxable. Retired pay/survivor benefits: Exempt Accepts computer forms? Yes, except for NJ1040 Allows electronic filing? Yes, except for NJ1040 Nonresident filing: If the military nonresident has nonmilitary income from a New Jersey source, he may be required to file Form NJ1040NR; military income is included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Generally, no Maximum tax rate: 6.37 percent Deadline: April 17 NEW MEXICO Taxation and Revenue Department P.O. Box 25122 Santa Fe, NM 87504-5122 (505) 827-0827 Forms: (505) 827-2206 Website: http://www.state.nm.us/tax Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Individuals 65 years old or older may be eligible for a deduction of up to $8,000. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a New Mexico source, he may be required to file Form PIT-1; military income is included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? No Maximum tax rate: 8.2 percent Deadline: April 17 NEW YORK Taxpayer Assistance Center W.A. Harriman Campus Albany, NY 12227 (800) 225-5829 Forms: (800) 462-8100 Refund: (800) 443-3200 Website: http://www.tax.state.ny.us Military income exemptions: If permanent home was New York state before entering the military, active-duty income is not subject to state taxes, if taxpayer meets all three of the following conditions: 1) did not maintain any permanent place of abode in New York state during tax year; 2) maintained a permanent place of abode outside New York during the entire year; 3) spent less than 30 days in New York state during tax year. (Barracks, bachelor officers´ quarters, quarters assigned on vessel do not constitute permanent abode.) It also is not subject to tax if taxpayer was in a foreign country for at least 450 days during any period of 548 consecutive days. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Exempt Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a New York source, he may be required to file Form IT-203; military income is included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Generally, no Maximum tax rate: 6.85 percent (New York City residents subject to additional local tax rate of 3.84 percent; Yonkers applies 10 percent tax surcharge.) Deadline: April 17 NORTH CAROLINA Department of Revenue 501 N. Wilmington St. Raleigh, NC 27640 (919) 733- 3991 Forms: (919) 715-0397 Refund: (919) 733-4682 Website: http://www.dor.state.nc.us Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: May deduct up to $35,000 of any severance wages received as a result of your permanent involuntary termination from Employment through no fault of your own. Retired pay/survivor benefits: If you have five years of creditable service as of Aug. 12, 1989, all military retired pay is exempt from taxes; otherwise up to $4,000 deduction allowed for military retired pay or survivor´s benefits. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a North Carolina source, he may be required to file Form D-400; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 8.25 percent Deadline: April 17 NORTH DAKOTA State Tax Commissioner State Capitol 600 E. Boulevard Ave. Bismarck, ND 58505-0599 In state: (800) 638-2901 Out of state: (701) 328-2770 Website: http://www.ndtaxdepartment.com Military income exemptions: If Form ND-2 (long form) is used, an exclusion of up to $1,000 of compensation for active-duty service or for service in the Reserve or North Dakota National Guard is allowed. In addition, if stationed outside the United States for at least 30 days, an exclusion of up to $300 of compensation for active-duty service is allowed for each month (or fraction thereof) of service outside the United States. Field-grade and general officers are not eligible for this exclusion. All service personnel are advised to complete Form ND-2 and Form ND-1 (short form) to see which yields the lower tax. Otherwise, follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: If Form ND-2 is used, an exclusion is allowed if a retiree is at least 50 years of age. The exclusion is equal to the lesser of (1) the total amount of taxable military retirement benefits reduced by any Social Security retirement benefits received or (2) $5,000 reduced by any Social Security retirement benefits received. SBP benefits are taxed following federal tax rules. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a North Dakota source, he may be required to file; military income is included in figuring tax rate on nonmilitary income if the short form, ND-1, is used; it is not if Form ND-2 is used. Permits separate returns even if a joint federal return is filed? Generally, no. Special rules may apply if one spouse is a nonresident. Maximum tax rate: 5.54 percent Deadline: April 17 OHIO Taxpayer Services Division 4485 Northland Ridge Blvd Columbus, OH 43229 (800) 282-1780 Forms: (800) 282-1782 Military Taxpayer Information Website: http://tax.ohio.gov/divisions/ohio_individual/individual/military_service_ohio_taxes.stm Military income exemptions: Ohio state law allows for the deduction of military pay if received while stationed outside the state (for all returns after Jan. 1, 2007 only). Effective for taxable years beginning Jan. 1, 2007, Ohio exempts from state income taxes military pay earned while the service member (including members of any guard or reserve unit) is stationed outside the state. This exclusion applies to pay received while the individual is stationed at installations outside Ohio Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Graduated tax credit up to $200 based on retirement income; survivor benefits excluded. Effective for taxable years beginning after Dec. 31, 2007, military retired pay from the active or reserve components of the U.S. Army, Navy, Air Force, Marines, Coast Guard, and the National Guard, and SBP benefits are exempt from state income tax and school district income tax. This pay can be deducted from federal adjusted gross income. Eligible taxpayers can request that their Ohio withholding be adjusted by contacting the Defense Finance and Accounting Service at www.dfas.mil or (877) 363-3677. Federal civil service retirees who received federal service credit for military service are allowed to deduct only that portion of their pension attributable to military service. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from an Ohio source, he or she may be required to file tax form IT1040/Schedule D Permits separate returns even if a joint federal return is filed? No Maximum tax rate: 7.5 percent Deadline: April 17 OKLAHOMA Taxpayer Assistance Division P.O. Box 53248 Oklahoma City, OK 73194-3248 In state: (800) 522-8165 Out of state: (405) 521-3160 Forms: (405) 521-3108 Website: http://www.oktax.state.ok.us Military income exemptions: The first $1,500 of active-duty pay and POW/MIA benefits exempt. Otherwise, follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Up to $5,500 of retirement pay exempt; first $5,550 of survivor benefits exempt. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income of $1,000 or more from an Oklahoma source, he is required to file tax form 511NR; military income is included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Only if servicemember is Oklahoma resident and spouse is nonresident. Maximum tax rate: 10 percent Deadline: April 17 OREGON Oregon Department of Revenue 955 Center St. N.E. Salem, OR 97301-2555 In state: (800) 356-4222 Out of state: (503) 378-4988 Website: http://www.dor.state.or.us Military income exemptions: Exempts all active-duty pay earned outside Oregon and up to $3,000 of active-duty pay earned in Oregon. Otherwise, follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Federal retirees, including military personnel, no longer have to pay Oregon tax on their federal pensions. Retirees who worked for the federal government prior to Oct. 1, 1991, but who did not retire until after that date, must continue to pay taxes on the portion of their federal pensions attributable to federal service after Oct. 1, 1991. Credit allowed on all retirement income taxed by Oregon of individuals age 62 or older on Dec. 31, 2002. The ability to claim the credit also is dependent on taxpayer´s household income (limit is $22,500 single; $45,000 married filing jointly). Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from an Oregon source, he may be required to file tax form 40N; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes, if spouses do not have the same residency status (i.e., one is a full-year Oregon resident and one is not). Maximum tax rate: 9 percent Deadline: April 17 PENNSYLVANIA Bureau of Individual Taxes Taxpayer Inquiry Unit Fifth Floor, Strawberry Square Harrisburg, PA 17128 (717) 787-8201 (888) 728-2937 Forms: (800) 362-2050 Website: http://www.revenue.state.pa.us Military income exemptions: All active-duty pay earned outside state is exempt; will accept as proof the authority section of the military orders directing the Pennsylvania resident to federal duty outside Pennsylvania; POW/MIA benefits also exempt. Otherwise follows federal tax rules. Exit bonuses/separation pays: Taxed if received by state resident while in the state; otherwise not taxed. Retired pay/survivor benefits: Not taxed. Accepts computer forms? Yes Accepts electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from Pennsylvania source, he may be required to file tax form PA40; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 3.07 percent flat tax Deadline: April 18 RHODE ISLAND Rhode Island Division of Taxation 1 Capitol Hill Providence, RI 02908 (401) 222-3911/1040 Forms: (401) 222-1111 Refund: (401) 274-3676 Website: http://www.tax.state.ri.us Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Follows federal tax rules. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Rhode Island source, he may be required to file Form 1040NR; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes, if one spouse is a resident of Rhode Island and the other is a nonresident or part-year resident. Maximum tax rate: Base fee plus 9.9 percent on amount over $307,050 Deadline: April 17 SOUTH CAROLINA South Carolina Department of Revenue P.O. Box 125 Columbia, SC 29214 (800) 763-1295 Forms: (800) 768-3676 Website: http://www.sctax.org Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Military retirees with 20 or more years of active duty can deduct up to $3,000 annually until age 65 and up to $10,000 per year after age 65. This deduction extends to the surviving spouse. Pension or retirement income received for time served in the National Guard or Reserve components is not taxable. Survivor benefits are taxed following federal tax rules. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a South Carolina source, he may be required to file Form SC1040/NR; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? No Maximum tax rate: 7 percent Deadline: April 17 SOUTH DAKOTA South Dakota Department of Revenue 445 E. Capitol Ave. Pierre, SD 57501 (800) 829-9188 Fax: (605) 773-5129 Website: http://www.state.sd.us/revenue/revenue.htm No state income tax TENNESSEE Tennessee Department of Revenue Attention: Taxpayer Services 500 Deaderick St. Nashville, TN 37242 (800) 342-1003 (in-state) or (615) 253-0600/741-4465 Refund: (615) 741-0443 Website: http://www.state.tn.us/revenue No earned income tax Taxable: 6 percent on interest and dividends over $1,250 for singles or $2,500 for married people filing jointly; interest and dividends received from certain institutions in Tennessee exempt (check with state for listing). Accepts computer forms? Yes Allows electronic filing? Yes Deadline: April 17 TEXAS Comptroller of Public Accounts Lyndon B. Johnson State Office Building 111 E. 17th St. Austin, TX 78774 (800) 252-5555 Website: http://www.window.state.tx.us No state income tax UTAH Utah Tax Commission 210 N. 1950 W. Salt Lake City, UT 84134 (800) 662-4335 Website: http://www.tax.ex.state.ut.us Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Up to age 65, individual can deduct up to $4,800 of qualified retirement; $7,500 at age 65 older. Deductions apply to survivor benefits. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filings: If the military nonresident has nonmilitary income from a Utah source, he may be required to file Form TC40; military income is included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Generally, no Maximum tax rate: 7 percent Deadline: April 17 VERMONT Vermont Department of Taxes Taxpayer Services Division 109 State St. Montpelier, VT 05609-1041 (802) 828-2865 Website: http://www.state.vt.us/tax Military income exemptions: POW/MIA benefits; first $1,500 of National Guard training pay if federal adjusted gross income of less than $47,000 in prior taxable year; letter from unit needed to claim exclusion. Otherwise, follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Follows federal tax rules. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Vermont source, he may be required to file Form 111/Form 113; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? No, unless one of the spouses is a nonresident who has no Vermont income. Maximum tax rate: Base fee plus 9.5 percent on amount over $307,050 Deadline: April 17 VIRGINIA Customer Services Section P.O. Box 1115 Richmond, VA 23218-1115 (804) 367-8031 Forms: (804) 236-2760/61/62 Website: http://www.tax.state.va.us Military income exemptions: Up to $15,000 of military basic pay received during the taxable year may be exempted from Virginia income tax. The exemption amount is reduced when military pay exceeds $15,000 and is fully phased out when pay reaches $30,000. Military personnel must serve on active duty for 90 days or more and can be stationed inside or outside of Virginia. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: Follows federal tax rules. Under new state rule, military retirement income received by individuals awarded the Medal of Honor can be subtracted from federal gross income for tax purposes. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income from a Virginia source, he may be required to file Form 763; military income is included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes. If you are a nonresident and your spouse is a resident of Virginia, you must file separate returns. Maximum tax rate: 5.75 percent Deadline: May 1. For servicemembers stationed outside the United States or Puerto Rico on that date, due date is extended to July 1. WASHINGTON Taxpayer Services Division P.O. Box 47478 Olympia, WA 98504-7478 (800) 647-7706 Website: http://www.dor.wa.gov No state income tax WEST VIRGINIA Department of Tax and Revenue Taxpayer Services Division P.O. Box 3784 Charleston, WV 25337-3784 (800) 982-8297 (304) 558-3333 Website: http://www.state.wv.us/taxdiv Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: First $2,000 is exempt, plus an additional exclusion total whose formula is years of military service multiplied by 2 percent, multiplied by military pension; or $30,000, whichever is less. Accepts computer forms? Yes Allows electronic filing? Yes, for residents only, and both federal and state returns must be transmitted at the same time. Nonresident filing: If the military nonresident has nonmilitary income from a West Virginia source, he may be required to file Form IT-140NR/PY; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 6.5 percent Deadline: April 17 WISCONSIN Wisconsin Department of Revenue Individual Income Tax Assistance P.O. Box 8906 Madison, WI 53708-8906 (608) 266-2772 Forms: (608) 266-1961 Refund: (608) 266-8100 Website: http://www.dor.state.wi.us/ Military income exemptions: Follows federal tax rules. Exit bonuses/separation pays: Follows federal tax rules. Retired pay/survivor benefits: All military retirement pay is exempt. Accepts computer forms? Yes Allows electronic filing? Yes Nonresident filing: If the military nonresident has nonmilitary income of more than $2,000 from a Wisconsin source, he may be required to file Form 1NPR; military income is not included in figuring tax rate on nonmilitary income. Permits separate returns even if a joint federal return is filed? Yes Maximum tax rate: 6.75 percent Deadline: April 17 WYOMING Department of Revenue 122 W. 25th St., 2 West Cheyenne, WY 82002-0110 (307) 777-5200 Website: http://revenue.state.wy.us/ No state income tax U.S TERRITORIES and POSSESSIONS Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Virgin Islands and Puerto Rico have their own independent tax departments. If you have income from one of these possessions, you may have to file a U.S. tax return only, a possession tax return only, or both returns. This generally depends on whether you are considered a resident of one of the possessions. In some cases, you may have to file a U.S. return, but be able to exclude income earned in a possession from U.S. tax. For more information, see the IRS International Taxpayer page. Individuals Living in U.S. Possessions American Samoa Tax DivisionGovernment of American Samoa Pago Pago, American Samoa 96799 American Samoa information (IRS) Commonwealth of the Northern Mariana Islands Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. O. Box 5234, CHRB Saipan, MP 96950 Guam Department of Revenue and Taxation Government of Guam P.O. Box 23607 GMF, GU 96921 (671) 472-7471 Fax: (671) 472-2643 Residency: Servicemembers stationed on Guam are not considered residents of Guam and must file their returns with the United States. However, members of the military who are citizens of Guam, and civilian employees of the military, are subject to the same rules described at Guam information. Puerto Rico Negociado de Asistencia Contributiva y Legislación Departamento de Hacienda P.O. Box 565 San Juan, Puerto Rico 00902-6265 (787) 721-2020, ext. 3611 Puerto Rican tax Forms: Contact the Forms and Publications Division Office at the above address or call (787) 721-2020, exts. 2643, 2645, or 2646 Virgin Islands Virgin Islands Bureau of Internal Revenue 9601 Estate Thomas Charlotte Amalie St. Thomas, U.S. Virgin Islands 00802 (340) 774-5865. Fax: (340) 714-9345 Copyright 2006 Military.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. |