Is my military pay subject to New York State and City income taxes?
• If you are a New York State resident and your permanent home (domicile) was in New York State when you entered the military but you were assigned to duty outside the state, you are still a New York State resident. Your military pay is subject to New York State income tax to the same extent it is subject to federal income tax. • If your permanent home (domicile) was in New York State when you entered the military but you meet the conditions for nonresident status, your military pay is not subject to New York State income tax. • If your permanent home was not New York State when you entered the military but you were assigned to duty in New York State, you do not become a New York State resident even if you have a permanent place of abode there. You are a nonresident and your military pay is not subject to New York State income tax. If you are a nonresident, other income that you receive from New York State sources (including your spouse’s income) may be subject to tax. See Publication
