Tax exemptions affect residents of KY, MN, NM and OK

Military members claiming legal residency in Kentucky, Minnesota, New Mexico and Oklahoma may have all or part of their  qualifying military pay exempt from state income taxes.

More information on these changes is available at:

Exceptions:

Certain pay received by military members are not exempt from state income tax withholding. These include:

  • Cadets and midshipmen - Kentucky/Minnesota/New Mexico/Oklahoma
  • Academy preparatory students (including prior enlisted prep students) - Kentucky/Minnesota/New Mexico/Oklahoma
  • ROTC, including the ROTC pay of dual status members - Kentucky/Minnesota/New Mexico/Oklahoma
  • College First - Kentucky/Minnesota/New Mexico/Oklahoma
  • Medical stipends, including Nurse Candidate Continuation bonuses - Kentucky/Minnesota/New Mexico/Oklahoma
  • Active Guard Reserves (AGRs) - Minnesota
  • Drill pay - New Mexico

Prior enlisted preparatory students must submit estimated state payments for all four states as their state income tax withholding is not currently processed by DFAS.

Page updated Sept. 18, 2013