Topics Related to Economic Impact

North Carolina proudly serves as a home to multiple military installations and defense companies. The defense industry relies on collaboration and research with the Department of Defense and NC’s excellent university system to create and produce the strongest systems and technology.

Defense industry research receives significant investment in North Carolina. NC’s public university system includes nine universities that have research and development programs specifically dedicated to defense projects.

As of January 1, 2021, military retirees who settle in North Carolina will be exempt from state taxes on their pensions. 

The tax exemption comes after the approval of a bill eliminating state tax on military pension income by the North Carolina General Assembly and signed by the Governor. Under the new law, the exemption will apply to veteran survivors, those who medically retired, and retirees who have served in the Armed Forces for a minimum of 20 years. North Carolina joins many other states that exempt military retirees from state income taxes.