Florida Residency for Military Members & Veterans

The Servicemembers Civil Relief Act (SCRA) protects active duty military from being taxed by a state solely because they are stationed there. Your state of legal residence (domicile) determines which state can tax your military income. If Florida is your domicile, you pay 0% state income tax on military pay regardless of where you're stationed. SCRA also prevents states from claiming you as a resident just because of military orders.

Yes. Military members can change their state of legal residence (SLR) to Florida without being physically stationed there, though you should establish genuine Florida ties. File DD Form 2058 with your finance office, get a Florida driver's license (during leave), register to vote in Florida, and establish a Florida address. The key is demonstrating intent to make Florida your permanent home.

MSRRA allows military spouses to maintain the same state of legal residence as their service member spouse, even if they live and work in a different state due to military orders. If the service member's SLR is Florida, the spouse can elect Florida residency and avoid state income tax on their earned income in the state where they're stationed. This applies to wages, salaries, and self-employment income.

No. BAH is not subject to federal income tax, and since Florida has no state income tax, your BAH is completely tax-free when Florida is your domicile. The same applies to BAS (Basic Allowance for Subsistence). These allowances are not included in gross income for tax purposes, regardless of your state of residence.

If you're deployed to a designated combat zone, your military pay (up to the enlisted pay cap for enlisted members, or all pay for officers in some cases) is excluded from federal income tax. Combined with Florida's 0% state tax, your effective tax burden during deployment can be very low. Filing deadlines are also extended for the duration of combat zone service plus 180 days.

Your Florida domicile remains in effect through PCS moves as long as you maintain your intent to return to Florida. Your virtual mailbox address stays the same regardless of duty station. Continue to maintain your Florida driver's license, voter registration, and vehicle registration. The SCRA protects you from being claimed as a resident by your new duty station state.

Savings depend on your current state of legal residence. An E-7 with 10 years earning approximately $65,000 in base pay could save $3,000-$6,000+ annually by switching from a high-tax state to Florida. An O-4 earning approximately $100,000+ could save $5,000-$10,000+ per year. Over a 20-year career, total savings can exceed $100,000. Individual results vary.

While getting a Florida driver's license requires an in-person visit to a Florida DMV office, much of the process can be done remotely. Many service members establish residency during leave, a TDY to Florida, or during a PCS. Our virtual mailbox and notarization process are fully remote. We recommend visiting Florida at least once to complete the DMV step, but it can be combined with leave or travel.

TSP (Thrift Savings Plan) distributions and military retirement pay are subject to state income tax based on your state of residence at the time of distribution. Florida has no state income tax, so if Florida is your domicile when you retire or start withdrawing TSP funds, you pay 0% state tax. Some states also tax military retirement pay, making Florida residency even more valuable for career military planning.