Did NC changed the tax laws retroactive for 2021 that no military retiree has to pay state tax, regardless of the Baily act.

Sort of. Yes, Session law 2021-180 created a new North Carolina deduction for certain military retirement payments. And, yes, it was made retroactive to January 1, 2021.

However, please note that this deduction is only for military retirement payments, not for all income. Also, like the Bailey Decision, there are restrictions for this deduction (like a minimum of 20 years in service). 

Please review this NC webpage about the new law.