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Tax Protection

SCRA Tax Protections

Maintain your home state domicile, defer taxes during financial hardship, and protect your spouse from state income taxes.

Your Tax Rights Under SCRA

SCRA provides several important tax protections for service members and their spouses:

State Domicile Protection

You can maintain your home state's domicile (legal residence) even when stationed elsewhere. This means you only pay state taxes to your home state—not the state where you're stationed.

Military Spouse Residency Relief

Your spouse can also use YOUR state of domicile for tax purposes, even if they work in a different state. This is a huge benefit if your home state has no income tax.

Tax Deferral

If military service materially affects your ability to pay taxes, you can defer payment (without penalties or interest) until 180 days after your service ends.

State Domicile Protection

Under 50 U.S.C. § 4001, your state of legal residence (domicile) for tax purposes doesn't change just because you're stationed elsewhere due to military orders.

What This Means

  • You pay state income tax only to your home state
  • The state where you're stationed cannot tax your military pay
  • Your home state determines your personal property taxes for vehicles
  • You can maintain voter registration in your home state

States With No Income Tax

If your home state has no income tax, you pay zero state income tax on your military pay regardless of where you're stationed:

Alaska
Florida
Nevada
New Hampshire*
South Dakota
Tennessee
Texas
Washington
Wyoming

* New Hampshire taxes only dividends and interest income.

Document Your Domicile Status

We help you establish and document your state domicile to avoid improper taxation.

Get Started — $59 Filing Fee

Military Spouse Protection

The Military Spouses Residency Relief Act (MSRRA) and Veterans Benefits and Transition Act of 2018 extend tax protections to military spouses:

  • Spouses can use the service member's state of domicile for tax purposes
  • This applies even if the spouse has never lived in that state
  • Income earned by the spouse in the duty station state is taxed only by the domicile state
Huge Savings Opportunity

If your domicile is Texas (no income tax) and your spouse earns $60,000 in California (13% tax rate), this protection saves approximately $7,800 per year.

Tax Payment Deferral

Under 50 U.S.C. § 4000, you can defer paying federal income taxes if your military service materially affects your ability to pay. To qualify:

  • Your military service must materially affect your ability to pay
  • Deferral lasts until 180 days after military service ends
  • No interest or penalties accrue during the deferral period

How to Request Deferral

  • File your tax return on time (or request an extension)
  • Attach a statement explaining how military service affects your ability to pay
  • Include a copy of your military orders

Maximize Your Tax Benefits

SCRA Saver helps you document domicile status, claim spouse protections, and request tax deferrals when needed.

Calculate My Total Savings

$59 filing fee • All 21+ protections included