Does Pennsylvania Tax Military Retirement Pay?

The rule

Pennsylvania does not tax retirement income, including military pensions, once retired after reaching a specific age or completing a stated period of service.

Source: https://www.pa.gov/en/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/gross-compensation.html · verified July 2026

What it means for your pension

Estimated Pennsylvania 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).