State Income Tax Withholding

Requests to withhold State Income Tax from your retired pay must be made in writing.  DFAS can only withhold income tax for one state at a time and the designated state must have signed the standard written SITW agreement with the Department of Defense (DOD).  Below is a list of states with DoD agreements for SITW. 

Because tax obligations vary from state to state, contact your state's department of revenue regarding taxability of your military retired pay

By law, SITW requests are voluntary and revocable at any time.

If you have a state tax option, and your state taxing authority has an agreement with DoD, you can use myPay to change your SITW.

Written requests must indicate a whole-dollar amount greater than $10 and the state for which to withhold this amount (For example, "I would like to have $11 withheld for Georgia State Income Tax Withholding"). DFAS cannot honor requests that do not conform to this format.

Mail or fax your request to:

Defense Finance and Accounting Service
U.S. Military Retirement Pay
P.O. Box 7130
London, KY 40742-7130

Fax to: 1-800-469-6559.

DFAS can only withhold income tax for one state at a time, and DFAS cannot withhold state income tax for annuitants.

The table below specifies whether DFAS can or cannot withhold taxes for each state or territory listed:

State	Y-N	State	Y-N
Alabama (AL)	Yes	Montana (MT)	Yes
Alaska (AK)	No	Nebraska (NE)	Yes
Arizona (AZ)	Yes	Nevada (NV)	No
Arkansas (AR)	Yes	New Hampshire (NH)	No
California (CA)	Yes	New Jersey (NJ)	Yes
Colorado (CO)	Yes	New Mexico (NM)	Yes
Connecticut (CT)	Yes	New York (NY)	Yes
Delaware (DE)	Yes	North Carolina (NC)	*
District of Columbia (DC)	Yes	North Dakota (ND)	Yes
Florida (FL)	No	Ohio (OH)	Yes
Georgia (GA)	Yes	Oklahoma (OK)	Yes
Guam (GU) - U.S. Territory	No	Oregon (OR)	Yes
Hawaii (HI)	No	Pennsylvania (PA)	No
Idaho (ID)	Yes	Puerto Rico (PR) - U.S. Territory	No
Illinois (IL)	No	Rhode Island (RI)	Yes
Indiana (IN)	Yes	South Carolina (SC)	Yes
Iowa (IA)	Yes	South Dakota (SD)	No
Kansas (KS)	Yes	Tennessee (TN)	No
Kentucky (KY)	No	Texas (TX)	No
Louisiana (LA)	Yes	Utah (UT)	Yes
Maine (ME)	Yes	Vermont (VT)	Yes
Maryland (MD)	Yes	Virgin Island (VI) - U.S. Territory	No
Massachusetts (MA)	Yes	Virginia (VA)	Yes
Michigan (MI)	No	Washington (WA)	No
Minnesota (MN)	Yes	Wisconsin (WI)	Yes
Mississippi (MS)	Yes	West Virginia (WV)	Yes
Missouri (MO)	Yes	Wyoming (WY)	No

 

 

*Although North Carolina does not have a withholding agreement with the DoD, you may still have SITW withheld for North Carolina.