I live in Washington but work in Oregon, is my military retirement pay taxed by Oregon?

    No. Your state of residence is the state you claimed as your residence at the time you enlisted. Generally, it's where you are registered to vote.
      Carl, Don't think that's right. If I live in a state that taxes retired military pay, I would have to pay it regardless where my residence was when I signed up.
        Dear Razorback4:

        I am a tax professional based in Oregon, and will be happy to provide you with a definitive answer to your original question.  The facts are as follows.

        If you are a Washington resident, then the state of Oregon has no claim on, or ability to tax, your military retirement pension.  The same is true for any other pension income that you might be receiving (i.e., military or non-military, it does not matter).

        Furthermore, your state of residence at the time you first entered military service has no bearing on the correct answer to your question -- even if that state was Oregon.  The only criterion that matters in determining the Oregon income taxation of any individual's pension income, is whether or not Oregon considers that person a resident or a nonresident for tax purposes.  A resident is taxed on pensions; a nonresident is not.

        As Washington state has no personal income tax system, you do not owe any state tax there on your military retirement pension either.  However, this income will still remain subject to federal taxation, so be sure to include it on your annual Form 1040.

        Finally, as I am sure that you are already aware, Oregon does tax nonresidents on their current Oregon wage income (but not retirement income, even if that retirement pension is a result of an entire career spent working in Oregon).  Therefore, if you do work in Oregon while living in Washington, you still have to pay Oregon income tax on wages from that job.

        Thank you for asking your question, and good luck to you!

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