I'll be deploying soon, and it'll be my first deployment. It'll be to a location where that's considered CZTE. I know that federal income tax is exempt (except for FICA tax), but what about state income tax? I'm a Georgia resident, so I've been paying income tax for the state of Georgia.

    Income tax for the state of Georgia while in CZTE?
    byu/yuseung inMilitaryFinance



    Posted by yuseung

    2 Comments

    1. Depends on the state. State tax won’t be withheld, but some states will still tax you on it come tax time.

      https://corpweb1.dfas.mil/askDFAS/faqView.do?faq.faqId=253&pgModId=4

      > State income tax withholding is not taken from income that is excluded for federal taxation due to service in a combat zone. However, some states allow only partial exclusion or none at all, so you may owe state taxes, depending on the laws of your state of legal residence.

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