Tax season can be a complex and daunting time for many, especially members of the armed forces, who often face unique challenges related to their service. One common question that military personnel and their families have is whether tax deductions vary from state to state. Let’s explore the intricacies of state-specific tax deductions and benefits available to you as a service member. To learn more, contact one of our AFBN offices located across the country for specific knowledge related to your state. 

State Taxation Basics

Before delving into the specifics of tax deductions, it’s essential to understand how states handle taxation. Each state in the United States has its own tax laws and regulations, which can vary from state to state. These differences encompass everything from income tax rates to sales tax rates, property taxes, and tax exemptions. As a service member, you have more deductions and benefits because of your current status, and it’s important to understand how each state can affect your benefits. 

Military Residency

A key factor determining your state tax liability is your residency status. Active-duty military personnel frequently face unique challenges related to residency because they may move more frequently due to deployments or station reassignments. Fortunately, the Servicemembers Civil Relief Act (SCRA) provides some protections regarding residency and taxation. 

  • Home of Record vs Legal Residence: Service members often maintain a “home of record” for military administrative purposes, which may be different from their legal residence for tax purposes. Understanding the distinction between these two can be crucial in dealing with state taxes. 
  • Military Spouse Residency: Military spouses may also have specific rules governing their tax status, particularly when they accompany their service member spouse on deployments or relocations. Some states offer tax benefits to military spouses to alleviate the tax burdens associated with frequent moves.

State-Specific Tax Benefits

It’s important to note that the availability and specifics of these benefits can vary widely from state to state. What may be a significant tax advantage in one state might not apply at all in another. Therefore, it’s important for military personnel and their families to research and understand the tax laws and benefits specific to their state of residence. Having professional help can reduce confusion and help you feel confident in regard to your tax benefits. 

Seek Professional Guidance

Given the complexity and variability of state tax laws, it’s advisable for you and your family to consult an AFBN advisor who specializes in military tax matters and benefits. Our team of experts can provide personalized guidance based on your unique circumstances and the state in which you reside. Contact an advisor conveniently located across the country for tax and military benefits assistance. 


Tax deductions and benefits for military personnel can differ from state to state. Understanding your residency status, researching your state’s tax laws, and seeking advice from an AFBN tax advisor when needed can help you make the most of your tax advantages. By staying informed and proactive, you can navigate the complex landscape of state-specific tax benefits and ensure you’re maximizing your financial well-being as a member of the Armed Forces. 

Contact AFBN today to get ahead of the crowd this tax season!