Jasz
VIP Contributor
North Carolina Military Retirement
Income tax rate in North Carolina for Military Retirement Pay:In North Carolina, some veterans may be required to pay a flat tax of 4.99% on their military retirement pay.Only veterans who have served at least 20 years or are medically retired are exempt from receiving military pensions.Severance pay received as a result of separation from the United States armed forces is exempt from this exemption.
If the retiree had five or more years of creditable service as of August 12, 1989, income from other federal government retirement plans or designated North Carolina state and local government retirement plans is exempt.The "Bailey exemption" is the name given to this exemption.
Kentucky Tax Rate From Military Retirement
Kentucky tax rate on income from military retirement:Kentucky provides veterans with a military pension with a partial exemption from the state's 5% flat tax.Other forms of retirement income are included in the scope of the exemption.
Up to $31,110 in income from private, government, and military retirement plans (including IRAs and 401(k) plans) is exempt from Kentucky tax thanks to the exemption.However, government retirement income derived from service credits earned prior to 1998 is completely and unequivocally exempt.
Income tax rate in North Carolina for Military Retirement Pay:In North Carolina, some veterans may be required to pay a flat tax of 4.99% on their military retirement pay.Only veterans who have served at least 20 years or are medically retired are exempt from receiving military pensions.Severance pay received as a result of separation from the United States armed forces is exempt from this exemption.
If the retiree had five or more years of creditable service as of August 12, 1989, income from other federal government retirement plans or designated North Carolina state and local government retirement plans is exempt.The "Bailey exemption" is the name given to this exemption.
Kentucky Tax Rate From Military Retirement
Kentucky tax rate on income from military retirement:Kentucky provides veterans with a military pension with a partial exemption from the state's 5% flat tax.Other forms of retirement income are included in the scope of the exemption.
Up to $31,110 in income from private, government, and military retirement plans (including IRAs and 401(k) plans) is exempt from Kentucky tax thanks to the exemption.However, government retirement income derived from service credits earned prior to 1998 is completely and unequivocally exempt.
