State Income Tax Withholding

Defense Finance
and Accounting Service
Providing payment services of the U.S. Department of Defense
MyPay

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) Yes
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) No West Virginia (WV) Yes
Missouri (MO) Yes Wyoming (WY) No
 

 



































 

Page updated October 6, 2011