Military retirement benefits

A subtraction is allowed to retired military servicemembers under 55 years of age at the end of the tax year for military retirement benefits included in their federal taxable income. The allowable subtraction is subject to the following limits, based on the tax year.

Subtraction Limit Based on The Tax Year Tax year Limit 2019 $4,500 2020 $7,500 2021 $10,000 2022-2028 $15,000

For additional information, please see Department publication Income Tax Topics: Military Servicemembers .