Are military personnel exempt from sales tax?
Henry Morales
Published Apr 01, 2026
California: active military members and their families may be exempt from the state’s use tax on certain purchases. Oklahoma: 100% disabled veterans are exempt from sales tax.
What states do not tax military retired pay?
The following states don’t require military members to pay state income tax on military retirement pay because there is simply no state income tax collected:
- Alaska.
- Florida.
- Nevada.
- New Hampshire (dividend and interest taxes only)
- South Dakota.
- Tennessee (dividend and interest taxes only but will be phased out in 2021)
Do military bases pay sales tax?
Tax does not apply to sales to the armed services of merchandise purchased with unit and similar funds (company, troop, hospital, recreation, welfare, etc.) As such, sales to this nonappropriated civilian welfare fund are exempt from California state and state-administered local sales taxes.
Can I claim military uniforms on my taxes?
Military uniform expenses can be deductible. The cost of any uniforms you purchase that are not suitable to wear off duty can be deducted with your miscellaneous itemized deductions. All uniform cleaning and maintenance is also tax deductible.
Are there any exempt organizations from sales tax?
Sales to certain branches of government may be provided an exemption under other provisions. For example, sales to government agencies may be taxable, but sales to educational institutions may be exempt. Therefore, public schools operated by a municipal or state government may be exempt.
Where can I get sales and use tax training?
The Sales Tax Institute is your destination for any sales and use tax training and education — along with assistance in career development for sales tax professionals.
How to get an exemption from sales tax?
Most states require an application by the organization for the exemption to apply. Additionally, a separate exemption number or letter may be issued for the sales tax exemption. The federal exemption letter will generally not be considered substantiation for the state sales tax exemption.
Do you have to pay sales tax on a military car?
Military members must pay sales tax on purchases, just like everyone else. What gets a little tricky is that the sales tax is based on and paid to the state in which the car is registered, which is often different from the state where the car was purchased. In addition, some states have lower rates or special deals for active duty military.