Pennsylvania is one of the best state for military service members and veterans to retire for many reasons. In addition to being one of the most tax-friendly states for vets, Pennsylvania offers a beautiful landscape, interesting history, rich cultural and recreational opportunities and a low cost of living. The large population of retired military personnel in the Commonwealth is a testament to the area’s advantages. There are also exceptional active retirement communities in the area like Cornwall Manor that prioritize independent living and the availability of quality care.
States That Do Not Tax Military Retirement
Laws vary dramatically between states. Some states do not tax military retirement pay, while others partially tax military pay. Some states have specific exemptions, while others tax military retirement pay as ordinary income. The following is a list of states that do not tax military retirement despite having a state income tax:
- Pennsylvania
- Arizona
- Connecticut
- Michigan
- Iowa
- Alabama
- Kansas
- Louisiana
- Maine
- Massachusetts
- Minnesota
- Mississippi
- Missouri
- New York
- Illinois
- Nebraska
- Hawaii
- North Carolina
- Ohio
- Wisconsin
- Arkansas
- New Jersey
These states have no state income tax, and therefore do not tax military retirement pay:
- New Hampshire
- Florida
- Wyoming
- Texas
- South Dakota
- Tennessee
- Alaska
- Washington
- Nevada
Does Pennsylvania Tax Military Retirement Pay?
Pennsylvania does not tax military retirement pay as long as military service members and veterans reach retirement age or complete the required years of service. Dependency and Indemnity Compensation (DIC) is also not taxed. DIC is paid to eligible survivors of service members who passed away in active service or due to disease or injuries related to their service.
Military pay for those serving in the United States Army Reserve or the Pennsylvania Army National Guard is not liable to personal income tax. The state will not tax your pay whether your active duty was performed in or outside Pennsylvania. Additionally, Army veterans who are disabled, meet the criteria and have been honorably discharged are exempt from real estate tax.
There are many other benefits for Army retirees and their families. The GI Bill is an example of how the Commonwealth helps veterans pay for college, graduate school and training programs for themselves or eligible family members by covering some or all costs.
Pennsylvania provides Commonwealth Veteran Benefits and has the fourth-largest veteran population in the country, with nearly 800,000 veterans living in PA. Pennsylvania is one of the most military retirement-friendly states for reasons beyond tax lenience. Whether former military service members or veterans want to relax, stay active or combine the two, Pennsylvania offers the ideal location.
Reasons to Retire in Pennsylvania
Tax benefits for military retirees are among the numerous advantages of enjoying retirement in the Keystone State. Additional perks of this area include:
- Affordable cost of living: With a lower cost of living than in many other northeastern states, Pennsylvania is the ideal spot to settle and get the most out of one’s retirement and savings.
- Scenic beauty and outdoor activities: If you are an outdoor person craving the quieter side of rural Pennsylvania, you are in for a treat. Your days can be filled with as much variety as you wish, from hiking and biking to exploring quaint towns and nearby parks.
- Historical landmarks and cultural attractions: The many historical sites in the area offer the opportunity to immerse yourself in America’s past. There’s also no shortage of cultural attractions throughout Pennsylvania, from art galleries and museums to live music and theatre, and so much more.
Welcoming Retirement Communities in PA
If you are an older adult looking to retire or have a family member interested in retirement options in Pennsylvania, consider the benefits of a Continuing Care Retirement Community (CCRC).
For example, Cornwall Manor is a not-for-profit CCRC that is surrounded by nature. We prioritize maintaining independence and active living while providing care for residents as needed. Our location near Hershey, Lancaster and Lebanon is surrounded by natural beauty and history. As a CCRC, Cornwall Manor offers independent living, personal care and skilled nursing care all in one campus. In addition, the Lebanon VA Medical Center is within minutes of Cornwall Manor and has consistently been named one of the top VAMC in the United States.
Retire in the Keystone State — Schedule a Visit to Cornwall Manor
When planning your retirement, consider the opportunity to become part of an active community and the many benefits that help residents thrive. Cornwall Manor offers a place where the priority is staying active, staying well and staying independent.
Schedule a visit to Cornwall Manor to discover the many uplifting benefits of calling our community in the Lebanon Valley your new home.
