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No Tax on Any Personal Income — I&D Tax Repealed

The state taxes no wages and, since the Interest & Dividends Tax repeal took effect for periods beginning after 31 December 2024, no interest or dividend income either. Military retirement pay was never taxed and there is no state return to file.

Verified August 20, 2026

What this benefit is

The state taxes no wages and, since the Interest & Dividends Tax repeal took effect for periods beginning after 31 December 2024, no interest or dividend income either. Military retirement pay was never taxed and there is no state return to file.

Who is entitled to it

  • 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.

From what you have told us so far, you appear to qualify.

How to claim it

  1. 1There is nothing to claim: the state has no tax on W-2 wages or pensions, so military retirement pay is simply untaxed.
  2. 2The Interest & Dividends Tax — 5%, then 4% (2023), then 3% (2024) — is repealed for taxable periods beginning after 31 December 2024. A retiree living on investment income no longer files an I&D return.
  3. 3This is general law, not a veteran benefit: every resident is treated the same way.
File with
Nothing to file — there is no personal income tax return
No renewal
Once granted it does not need renewing.
CorrectionGuides written before 2025 warn that the state taxes interest and dividends at 3–5%, which mattered to retirees living on savings. That tax no longer exists for periods beginning after 31 December 2024 — the warning is stale.

Sources

Why only one source type: The administering department's own page states the repeal, its effective period and that wages are not taxed.

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