Worried about military retirement income tax taking too much of your hard-earned money out of your pockets? A group of lawmakers are seeking to end to military retirement income tax in one state.
Some South Carolina lawmakers are pushing to end their state’s tax military retirement income. Bills in both the House and Senate of SC have been introduced and are being pushed by military supporters.
Will the Bills make it all the way to law? That’s yet to be seen. If SC ends military retirement income tax, lawmakers will also be giving up a big chuck of tax revenue. We all know how much our politicians love their money – whether it comes from taxing the military or the middle class.
Ending Military Retirement Income Tax in South Carolina
How much will it cost to end taxes on military pensions in South Carolina? Some estimates put that cost at around $22 million. Military supporters, however, say that ending military retirement taxes will actually benefit the state in the long run.
[tweetthis]Lawmakers Seek End to #Military #Retirement #IncomeTax. [/tweetthis]
Supporters feel that South Carolina – which is already a destination for many retirees – will attract more military retirees once they repeal the state income tax on military retirement. And once here, those veterans will have more money to spend.
Lawmakers in the SC House approved ending the military retirement income tax last session. The Senate, however, did not debate the issue before ending the 2014 session. You can expect the Bill to get another push in 2015.
Military Retirement Income Tax by State
If you have retired from the military or you are just looking for a state to live with your military family once you do retire, it would make sense to know which states let you keep your hard-earned money. Some states do not tax military retirement income at all while others do tax that income – but at different rates.
If you’ve ever wondered what the tax rate was on military retirement income in the United States on a state by state basis, here’s an up-to-date list on military retirement income tax by state.