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Frequently Asked Questions


How to Start, Stop or Change State Income Tax Withholding from Your Military Retired Pay

Military retirees can start, stop or change state income tax withholding (SITW) by using myPay, by filling out and sending a DD Form 2866 Retiree Change of Address/State Tax Withholding Request, or by sending a written request that includes all of the necessary information.

DFAS can only withhold income tax for one state at a time and the designated state must have signed the standard written State Income Tax Withholding agreement with the Department of Defense (DoD). Please see the table below for the status of specific states/territories.

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

Use myPay to Start, Stop or Change SITW

The easiest and most secure option to start, stop or change your state income tax withholding (SITW) is to use myPay.

Once you are logged in to your Military Retiree account, go to the far left column and click on “State Withholding.” Click on the green tab to add or change state withholding and enter an amount of at least $11. Click the “Continue” button, review the amount and then click the “Submit” button.

Use the DD Form 2866 or Send a Written Request to Start, Stop or Change SITW

Whether using the DD 2866 form or a written request, the request 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." If you send a written request that is not on the form, please include your full name, daytime phone number, social security number and signature on all written correspondence. DFAS cannot process requests that do not include this information.


Mail your DD 2866 form or written request to:

Defense Finance and Accounting Service
U.S. Military Retirement Pay

8899 E 56th Street
Indianapolis, IN 46249-1200

Or 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.

Download the Military Retired Pay State Income Tax Withholding Quick Reference PDF HERE (Right click and choose "Save link as...")

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 Aug 29 2022