Is military retirement pay taxed in District of Columbia?
By a Navy veteran. Updated October 2026.
Yes
District of Columbia: Taxed like other income. One guide lists a $3,000 exclusion at age 62 and over. Federal income tax still applies to retired pay in every state.
Sources disagree for District of Columbia. Published guides do not agree on this state’s rule, so treat the figure above as a planning estimate and confirm it with the DC Office of Tax and Revenue before you decide.
What this means for your plan
District of Columbia taxes military retired pay like other income, so plan for state tax on top of federal tax. Rates and brackets change, so confirm the current rate before you build your budget.
VA disability pay is not taxed by the federal government, and most states follow that treatment.
Local taxes in District of Columbia
No local income tax that we know of. Confirm with your city or county.
Questions
Does District of Columbia tax military retirement pay?
Yes. Taxed like other income. One guide lists a $3,000 exclusion at age 62 and over.
Is VA disability pay taxed in District of Columbia?
VA disability compensation is not taxed by the federal government, and most states follow that treatment. Confirm with the DC Office of Tax and Revenue.
Where do I confirm the rules for District of Columbia?
Use the DC Office of Tax and 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 District of Columbia 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 DC Office of Tax and Revenue and the DFAS retired pay tax page.