By Blair Drake, MOAA Contributing Editor
Is your state still fully taxing retirement pay? MOAA National serves in an advisory capacity for state-specific issues such as income tax exemption. Please contact your local MOAA council as state legislation must originate at the state level.
A MOAA board member is calling on the Maryland state legislature to exempt military retired pay from state income tax. In an op-ed published Feb. 1 in the Annapolis Capital, Rear Adm. Tom Jurkowsky, USN (Ret), says exempting military retired pay is good for the state's economy.
“[It] would entice career military personnel to remain in the state and pursue their second careers here, generating tax revenue from these follow-on jobs,” he writes.
Jurkowsky commends Maryland lawmakers for their efforts over the years to reduce the tax, but says it's not enough to keep military retirees in the state.
Currently, Maryland is one of 19 states that provides partial exemptions; 27 states do not tax retired military pay, including neighboring Pennsylvania and West Virginia.
[RELATED: View MOAA's state tax comparison map to see where each state stands on taxation of military retired pay.]
“Immediate tax relief for military retirees in Maryland is a fiscally sound and viable option to attract and retain valuable individuals - good neighbors who pay their bills, volunteer in the community and have an appreciable level of discretionary income,” Jurkowsky writes.