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Military Retirement Pay — Fully Subtracted, Survivors Included

Military retirement pay is subtracted in full from state income — retired armed forces and National Guard members qualify, and so do survivors paid under an election the retiree made. Payments to a former spouse under a divorce decree do not.

Verified August 20, 2026

What this benefit is

Military retirement pay is subtracted in full from state income — retired armed forces and National Guard members qualify, and so do survivors paid under an election the retiree made. Payments to a former spouse under a divorce decree do not.

What it's worth: 100% of military retirement pay subtracted on the state return

  • The saving is your marginal state rate on the amount subtracted, so it depends on your bracket.

Who is entitled to it

  • You receive military retired pay.
  • Your home is in this state.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

Deadline: With your return
  1. 1Enter the military retirement pay you included in federal AGI as a subtraction on Schedule 1 (Line 44 of the 2024 booklet).
  2. 2Retired members of the armed forces or the National Guard qualify, and so does a survivor or beneficiary paid under an option or election the deceased retiree made — Survivor Benefit Plan payments among them.
  3. 3Railroad Retirement Tier 1 and Tier 2 benefits have their own separate full subtraction on the neighbouring line — do not mix the two.
Form
Form CT-1040, Schedule 1 subtraction
File with
Department of Revenue Services, with your annual return
Annual
Claimed once a year.
CorrectionThe booklet carves out a case the summaries omit: payments a FORMER SPOUSE receives under a final decree of divorce, dissolution, annulment or legal separation dividing military retired pay do NOT qualify for the exclusion. The former spouse pays state tax on that share even though the retiree would not.

Sources

Why only one source type: The DRS instruction booklet is the administering agency's own filing instruction; it states the subtraction, who qualifies and who does not in terms.

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.