Thanks to new laws that were passed in 2021, military retirement pay will now be tax free in five more states.
Over 100,000 military retirees will benefit from the new laws and see extra money in their pockets.
Here are the five states that decided to no longer tax military retirement pay:
Arizona
North Carolina
Utah
Indiana
Nebraska
Military retirees living in Arizona, North Carolina and Utah will see the changes take effect immediately.
For those who live in Indiana or Nebraska, the changes will become effective with the 2022 tax year, according to Military.com.
The addition of these five states brings the total number of states that do not tax military retirement income to 26.
Here’s an updated list of all U.S. states that don’t tax military retirement pay:
Alabama
Arizona
Arkansas
Connecticut
Hawaii
Illinois
Indiana
Iowa
Kansas
Louisiana
Maine
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Nebraska
New Jersey
New York
North Carolina
North Dakota
Ohio
Pennsylvania
Utah
West Virginia
Wisconsin
Five more states deciding to not tax military retirement income is a good move in the right direction, hopefully more states will follow suit soon.