Pennsylvania Income Tax Exemption for Military Pay Earned O…

Pennsylvania Income Tax Exemption for Military Pay Earned Outside Pennsylvania

Pennsylvania Department of Revenue

Full exemption from Pennsylvania personal income tax on military pay earned outside Pennsylvania

If you are a Pennsylvania resident serving on federal active duty or federal active duty for training outside Pennsylvania, that military pay is not taxable in Pennsylvania. Military pay you earn while you are living in Pennsylvania is taxed.

Check eligibility

How to apply

There is nothing to apply for. Leave the pay you earned on federal active duty outside Pennsylvania off the income you report on your PA-40 return.

What you'll need

Your orders showing a duty station outside Pennsylvania, and your Leave and Earnings Statements for that period.

Eligibility

You are a Pennsylvania resident filing a Pennsylvania personal income tax return
You served on federal active duty or federal active duty for training outside Pennsylvania
You received military pay for that service

Source

Official source

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