Article Title: States that Don't Tax Military Retirement
Article Excerpt: "Is military retirement pay taxable? When it comes to military retirement pay, in almost all cases, your pension benefits count as taxable income at the federal level. Disability compensation received from the Veterans Administration Disability Compensation program is nontaxable income and is separate from military retirement compensation.
Many states choose not to include military retirement pay in state income taxes, whether it's to acknowledge your service to your country or to make that state a more attractive place for veterans to live. Some tax this income fully, and some impose a partial tax.
States that don't tax military retirement pay include:
Alabama..."
Reference Source: turbotax.intuit.com
