Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.
- Exempts up to $20,000 in military retirement pay from state income tax for qualifying veterans through 2035.
- Provides a $20,000 tax exemption for military survivor benefit payments to qualifying spouses and dependents.
- Limits benefits to individuals earning under $125,000 or joint filers earning under $250,000 annually.
- Takes effect January 2025 to support veteran retention and provide relief for military families in California.
Senator Seyarto's Military Services Retirement and Surviving Spouse Benefit Payment Act proposes new tax exclusions for military retirees and their surviving family members in California, allowing qualified recipients to exclude up to $20,000 in annual retirement pay or survivor benefits from their state taxable income between 2025 and 2035.
The legislation creates two distinct exclusions from gross income. Military retirees with adjusted gross incomes under $125,000 ($250,000 for joint filers) may exclude up to $20,000 in federal retirement pay received for service in the uniformed services, which encompasses the Armed Forces, National Guard, Public Health Service, and NOAA Commissioned Officer Corps. Similarly, surviving spouses and beneficiaries meeting the same income thresholds may exclude up to $20,000 in annual payments received through the Department of Defense Survivor Benefit Plan.
The bill's findings cite California's approximately 60,000 unfilled high-tech positions and note that military retirees often possess technical and management expertise valuable to employers. Authors assert the tax exclusions would help retain skilled veterans in California while bringing additional federal funds into local economies through retirement pay, second career earnings, and veterans' benefits. Both exclusions would automatically expire on December 1, 2035.
 Shannon GroveR Senator | Committee Member |  Not Contacted | |
 Brian JonesR Senator | Bill Author | Not Contacted | |
 Tom LackeyR Assembly Member | Bill Author | Not Contacted | |
 Bob ArchuletaD Senator | Committee Member | Not Contacted | |
 Tom UmbergD Senator | Committee Member | Not Contacted |
| Bill Number | Title | Introduced Date | Status | Link to Bill |
|---|---|---|---|---|
AB-53 | Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act. | December 2024 | Introduced | |
AB-46 | Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act. | December 2022 | Failed | |
Personal income taxes: exclusion: uniformed services retirement pay: survivor benefit plan payments. | January 2022 | Failed |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 5 | 0 | 0 | 5 | PASS |
- Exempts up to $20,000 in military retirement pay from state income tax for qualifying veterans through 2035.
- Provides a $20,000 tax exemption for military survivor benefit payments to qualifying spouses and dependents.
- Limits benefits to individuals earning under $125,000 or joint filers earning under $250,000 annually.
- Takes effect January 2025 to support veteran retention and provide relief for military families in California.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Senator Seyarto's Military Services Retirement and Surviving Spouse Benefit Payment Act proposes new tax exclusions for military retirees and their surviving family members in California, allowing qualified recipients to exclude up to $20,000 in annual retirement pay or survivor benefits from their state taxable income between 2025 and 2035.
The legislation creates two distinct exclusions from gross income. Military retirees with adjusted gross incomes under $125,000 ($250,000 for joint filers) may exclude up to $20,000 in federal retirement pay received for service in the uniformed services, which encompasses the Armed Forces, National Guard, Public Health Service, and NOAA Commissioned Officer Corps. Similarly, surviving spouses and beneficiaries meeting the same income thresholds may exclude up to $20,000 in annual payments received through the Department of Defense Survivor Benefit Plan.
The bill's findings cite California's approximately 60,000 unfilled high-tech positions and note that military retirees often possess technical and management expertise valuable to employers. Authors assert the tax exclusions would help retain skilled veterans in California while bringing additional federal funds into local economies through retirement pay, second career earnings, and veterans' benefits. Both exclusions would automatically expire on December 1, 2035.
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 5 | 0 | 0 | 5 | PASS |
Shannon GroveR Senator | Committee Member | Not Contacted | |
Brian JonesR Senator | Bill Author | Not Contacted | |
Tom LackeyR Assembly Member | Bill Author | Not Contacted | |
Bob ArchuletaD Senator | Committee Member | Not Contacted | |
Tom UmbergD Senator | Committee Member | Not Contacted |
| Bill Number | Title | Introduced Date | Status | Link to Bill |
|---|---|---|---|---|
AB-53 | Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act. | December 2024 | Introduced | |
AB-46 | Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act. | December 2022 | Failed | |
Personal income taxes: exclusion: uniformed services retirement pay: survivor benefit plan payments. | January 2022 | Failed |