Active-duty and reserve pay
Military pay of District residents is taxed like other wages.
An E-5 with over 6 years of service earns $49,320 a year in basic pay, and an O-3 with over 6 years $92,844. In District of Columbia, that basic pay is generally part of state taxable income. Housing and food allowances are never taxed by any state.
Military retired pay
Residents aged 62 and over can exclude up to $3,000 of military retired pay.
Your state of legal residence decides
Military pay is taxed by your state of legal residence, usually the state you lived in when you joined or one you later adopted by changing your records, not by the state where you are stationed. This comes from the Servicemembers Civil Relief Act. Spouses can choose to use the member's state of legal residence for their own income too.
See your total pay with state tax
Questions
Does District of Columbia tax military pay?
District of Columbia taxes military pay like other wages. Military pay of District residents is taxed like other wages.
Does District of Columbia tax military retirement pay?
Residents aged 62 and over can exclude up to $3,000 of military retired pay.
Is BAH taxed in District of Columbia?
No. BAH and BAS are not taxable income for federal or state tax in any state.
Which state taxes me if I am stationed in District of Columbia?
Under the Servicemembers Civil Relief Act, your military pay is taxed only by your state of legal residence, not the state where you are stationed. If District of Columbia is not your legal residence, District of Columbia does not tax your military pay.