Active-duty pay
No State Income Tax
No state income tax.
State Guide · TX
Texas — Military Tax Treatment
No state income tax. A significant financial factor for the large military populations at Fort Cavazos (Killeen), JBSA (San Antonio), and Fort Bliss (El Paso).
Tax treatment at a glance
Guard & Reserve drill pay
No State Income Tax
No state income tax. Guard and Reserve drill pay not taxed.
Military retirement pay
No State Income Tax
No state income tax.
VA disability compensation
Always tax-free
Federally tax-free under 38 USC § 5301. No state taxes VA disability compensation as income — Texas included.
Survivor Benefit Plan (SBP)
Follows retirement
No state income tax — SBP not taxed in Texas.
Federal rules that override state law
SCRA — Servicemembers Civil Relief Act
Active-duty servicemembers pay state income tax only to their state of legal domicile — not the state where they are stationed. If you are from Texas and stationed in Texas, Texas cannot tax your military pay. This applies during all active duty periods and during Guard/Reserve mobilizations on federal (Title 10) orders.
MSRRA — Military Spouses Residency Relief Act
Military spouses can maintain their home-state domicile even when living in a different state due to their servicemember's orders. A spouse who is a Texas resident following their servicemember to Texas can keep Texas as their tax domicile and avoid Texas state income tax on their wages.
Guard & Reserve — the SCRA gap
SCRA pay protections apply during federal (Title 10) activation orders. During routine drill weekends and state-only activations, Guard and Reserve members are state residents serving in their home state — SCRA does not protect their drill pay from state income tax. Whether Texas exempts that pay is the state-specific question answered above.
Filing watch-outs
- 01No state income tax return required. Property tax exemptions for disabled veterans are substantial — apply through your county appraisal district.
Veteran-specific tax benefits
Property tax exemptions tied to disability rating — 100% disabled = full exemption on primary residence.
Official authority
https://comptroller.texas.gov/ ↗State tax law changes annually. Verify current rules with the Texas Department of Revenue before making any tax decision.
Texas military tax — common questions
Does Texas tax military retirement pay in 2026?
Texas does not tax military retirement pay. No state income tax.
Does Texas tax active-duty military pay?
Texas does not tax active-duty military pay for state residents. No state income tax. Under the SCRA, Texas can only tax the military pay of service members who are legally domiciled in Texas — not those merely stationed there.
Does Texas tax National Guard and Reserve drill pay?
Texas does not tax Guard and Reserve drill pay. No state income tax. Guard and Reserve drill pay not taxed.
Is VA disability compensation taxed in Texas?
No. VA disability compensation is federally tax-free under 38 U.S.C. § 5301, and no state — including Texas — taxes it as income.
If I'm stationed in Texas but claim another state, can Texas tax my military pay?
No. Under the Servicemembers Civil Relief Act (SCRA), active-duty pay is taxable only by your state of legal domicile, not the state where you are stationed. If your domicile is elsewhere, Texas cannot tax your active-duty military pay. Military spouses get the same protection under the MSRRA.
Related tools
Other state guides