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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
8899 E 56th Street
Indianapolis, IN 46249-1200
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:
|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|