These States Passed New Military Income Tax Cuts in 2023

With tax season only months away, military service members and veterans can ring in the new year knowing a handful of states cut their income taxes in 2023, though some of those changes won't take effect right away.

The reductions include cuts benefiting younger retirees in Maryland and Virginia; new exemptions including all active-duty and reservist pay in Indiana; and up to half of the military retirement pay of new Montanans.