Is military retirement pay taxed in Alaska?
By a Navy veteran. Updated October 2026.
No
Alaska: No state income tax. Federal income tax still applies to retired pay in every state.
What this means for your plan
Alaska does not tax your retired pay, so your take-home is cut only by federal tax. The savings can be offset by property tax, sales tax, insurance and the general cost of living, so compare the full cost of living before you move.
VA disability pay is not taxed by the federal government, and most states follow that treatment.
Local taxes in Alaska
No local income tax that we know of. Confirm with your city or county.
Questions
Does Alaska tax military retirement pay?
No. No state income tax.
Is VA disability pay taxed in Alaska?
VA disability compensation is not taxed by the federal government, and most states follow that treatment. Confirm with the Alaska Department of Revenue.
Where do I confirm the rules for Alaska?
Use the Alaska Department of Revenue and the DFAS retired pay tax page. Rules change, so check the current year before you decide where to live.
See it for your family
The free planner puts your retired pay, VA pay and Alaska tax on one 24-month timeline, so you can see the month money gets tight. The States tab in the full version compares all 50 states and DC side by side.
Open the plannerSource and method
This summary comes from the state treatment data in the Runway planner, compiled from published state guides. It is not an official ruling. For the official rule, see the Alaska Department of Revenue and the DFAS retired pay tax page.