Active-duty and reserve pay
Military pay included in federal adjusted gross income is taxed. Pay exempt from federal tax, such as combat zone pay, is also exempt from Utah tax.
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 Utah, that basic pay is generally part of state taxable income. Housing and food allowances are never taxed by any state.
Military retired pay
Utah offers a tax credit for military retired pay rather than a full exemption.
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 Utah tax military pay?
Utah taxes military pay like other wages. Military pay included in federal adjusted gross income is taxed. Pay exempt from federal tax, such as combat zone pay, is also exempt from Utah tax.
Does Utah tax military retirement pay?
Utah offers a tax credit for military retired pay rather than a full exemption.
Is BAH taxed in Utah?
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 Utah?
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 Utah is not your legal residence, Utah does not tax your military pay.