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