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Texas Does Not Tax Military Retirement — Because It Taxes No Income at All

Widely listed as a Texas veteran benefit. It is not one. Texas has no personal income tax for anybody, and the constitution forbids creating one.

Verified August 18, 2026

What this benefit is

Widely listed as a Texas veteran benefit. It is not one. Texas has no personal income tax for anybody, and the constitution forbids creating one.

What it's worth: No Texas income tax applies — and none would apply to anyone

  • We deliberately assign this no value. Counting it as a veteran benefit would double-count a fact that is already priced into living in Texas, and would inflate any comparison against a state that exempts military pensions from a tax it actually levies.

Who is entitled to it

  • You draw military retired pay — and Texas does not tax it, or any other income.
  • Your home is in Texas.

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

  1. 1There is no application, no form and no office. Texas levies no personal income tax on anyone.
File with
Nobody — there is nothing to claim
No renewal needed
CorrectionAlmost every "best states for veterans" ranking credits Texas with not taxing military retirement pay, alongside genuine benefits, as though it were something the state does for veterans. It is not. Article VIII, §24-a of the Texas Constitution — amended by Proposition 4 in November 2019 to a flat prohibition — forbids the legislature from taxing the net income of individuals at all.
Worth knowingIt matters because it changes how a comparison should be read. A state that levies an income tax and then exempts military pensions from it has made a choice about veterans. Texas has made a choice about everyone. The take-home outcome can be similar; the reason is not, and neither is what could be taken away.

Sources

Why only one source type: We publish this record to correct a claim rather than to route an application, so the constitutional provision alone is sufficient authority.

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