News

Retired military personnel now exempt from N.C. income tax

By Lightning Reports, Published: November 21, 2021

Retroactively to Jan. 1 of this year, retired military personnel residing in North Carolina will now be exempt from paying state income taxes on their military retirement benefits.

State Sen. Chuck Edwards called attention on Sunday to what he touted as one of the most significant provisions of the recently enacted state budget.

"It's one thing to talk about how we value our veterans, but it's much better for us to show them our appreciation," he said in a news release. "Exempting military pensions from state tax is one of the strongest shows of support I think we can display for those who stood to protect our freedoms."

The military pension tax exemption will result in veterans keeping $30 million of the money they earned instead of paying it to the state in taxes. North Carolina has one of the largest military footprints in the country. The state ranks fifth nationally in population share of military personnel.