Military Retirement — Excluded in Full
All military retirement pay is excluded from Iowa income tax — since 2014, survivor benefits included, for residents and nonresidents alike.
Verified August 19, 2026
What this benefit is
All military retirement pay is excluded from Iowa income tax — since 2014, survivor benefits included, for residents and nonresidents alike.
What it's worth: The whole of your military retirement pay, excluded
- The saving is your marginal state rate on the amount excluded, 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- 1Exclude the full amount on the Iowa return — the exclusion has applied since tax year 2014.
- 2Survivor benefits under 10 U.S.C. 1447 are covered too.
- 3The exclusion does not count toward Iowa’s filing threshold, unlike other pension income — which can take a retiree out of filing entirely.
- File with
- The state revenue department, on your annual return
- Annual
- Claimed once a year.
Sources
- authority · published policyIowa Department of Revenue — Military Tax Information (Iowa Code §422.7(31A), (31B))
Why only one source type: The Department of Revenue's guidance states the full exclusion, the 2014 effective date and the survivor coverage in terms.
This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.