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2026 rules · verified against District of Columbia's primary source
District of Columbia taxes military retirement pay as ordinary income (top rate 10.75%).
Military retirement pay is fully taxed in DC; the old $3,000 exclusion for age 62+ was repealed for tax years beginning on or after Jan 1, 2015.
Treatment
taxed
Top marginal rate
10.75%
Source: https://code.dccouncil.gov/us/dc/council/code/sections/47-1803.02 · verified July 2026
Estimated District of Columbia state income tax on your military retirement, using the top marginal rate on the taxable portion (an upper bound; your effective rate is usually lower).
More District of Columbia: all District of Columbia veteran benefits · military retirement tax in every state · what your pension is worth