6 More States Stop Taxing Military Retirement

In 2022, six more states have joined the ranks of those exempting, or partially exempting, military retirement pay from state income tax liability. The move means that nearly 300,000 more military retirees across the nation are now exempt from state income tax.

This year, legislators in New Mexico, Oklahoma, Rhode Island, South Carolina, Vermont and Virginia passed laws giving retirees in those states tax breaks based on their military service.

Here's how the legislation shapes up:
 

• New Mexico: Beginning in 2022, up to $10,000 of military retirement is tax free. That amount increases to $20,000 in 2023, and to $30,000 until at least 2026, according to a governor’s press release.