Military spouses do not have a home of record. A state of legal residence, or domicile or legal domicile, is the place where the service member thinks of as home, the state where you intend to live after you leave the military. Your state of legal residence may change throughout your life.

Do military members pay California state taxes?

Military members remain residents of California for income tax purposes. California taxes residents on income from all sources. Nonresident military personnel stationed in California will not have their military pay taxed. However, if the military member works in California, that pay is taxable to California.

Is military exempt from California state tax?

Military Pay – Military pay is not included in California source income unless the military servicemember is domiciled in California and stationed in California. Nonresidents of California are not taxed on military retirement pay or other qualified retirement income.

Do you have to file CA tax when you join the military?

No, under the SCRA, an active duty servicemember retains their state domicile when joining the military and only pays tax on their active duty pay in the resident state. If you do not have any CA income other than the active duty pay, you do not have to file a CA return. August 3, 2019 11:56 AM

Do you become a California resident if you leave the military?

If you come to California because of permanent change of station (PCS) orders, you do not become a resident. Generally, you are a resident of the state from which you entered the military. Your domicile is the one place: If you leave California under a TDY, you will continue to be a California resident.

Do you have to report military pay in California?

If you are a resident of California – Military members that are residents of California must include their military pay in their total income. If you file a joint return for federal filing purposes, you may file the California return separately if either spouse was active duty during the year.

Do you pay state tax when you join the military?

No, under the SCRA, an active duty servicemember retains their state domicile when joining the military and only pays tax on their active duty pay in the resident state.