Especially if your military household moved to a new state in 2025, as a military spouse, keep in mind that you’ve received new rights in recent years in terms of where to pay your state income taxes – or not pay, if the state has no income tax.
In 2023, military spouses gained options for filing their state income taxes under the Servicemembers Civil Relief Act that now eclipse even those of active-duty members, because “In a weird quirk of the law, service members can use SCRA protections only for their military pay,” Military.com’s financial columnist Kate Horrell wrote in last year’s Tax Week series. Spouses, on the other hand, may rely on the protections for other types of income.
Read More: State Tax Filing Options for Military Households: What You Need to Know
As you get ready to file your 2025 taxes, here are some of the basics for military spouses to keep in mind:
States Where Military Spouses May Choose to File Taxes
The SCRA says service members and military spouses may file state taxes in any one of the following:
- The service member's state of legal residence.
- The military spouse's state of legal residence.
- The state where the household lives under PCS orders.
The Office of Financial Readiness describes “legal residence, or domicile” in part as follows: “In general, this is where you vote, register vehicles, or pay taxes. Most often, this is where you claimed legal residence before military service.”
Read More: State of Legal Residence vs. Home of Record
Depending on their situation, the service member and spouse don’t have to choose the same state to file their taxes.
Exceptions for Certain Income and Living Situations
Certain circumstances limit a spouse’s options:
- Rental income is one example of a form of income not covered under the SCRA for which taxes must be paid in the state where the rental property is located.
- Taxes on certain business income may have to be paid in the state where it’s earned. Military OneSource advises consulting a local tax professional.
- Spouses who don’t live in the same place as the service member due to orders must follow the local residency and tax rules where they live.
This fact sheet from the Office of Financial Readiness describes the sequence in which the government amended laws to add new filing options for spouses.
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