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    SB-1
    Budget & Economy

    Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.

    Introduced
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • 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.

    Summary

    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.

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Appropriations
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Appropriations
    Hearing has not been scheduled yet
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Placed on suspense file
    Senate Military and Veterans Affairs Hearing
    Senate Committee
    Senate Military and Veterans Affairs Hearing
    Do pass, but first be re-referred to the Committee on [Appropriations]
    Senate Revenue and Taxation Hearing
    Senate Committee
    Senate Revenue and Taxation Hearing
    Do pass, but first be re-referred to the Committee on [Military and Veterans Affairs]
    Introduced
    Senate Floor
    Introduced
    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Brian JonesR
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tom LackeyR
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Megan DahleR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 15 row(s) selected.
    Page 1 of 3
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Brian JonesR
    Senator
    Bill Author
    Profile
    Tom LackeyR
    Assemblymember
    Bill Author
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Megan DahleR
    Senator
    Committee Member
    Profile
    Laurie DaviesR
    Assemblymember
    Bill Author
    Profile
    Kelly SeyartoR
    Senator
    Bill Author
    Profile
    Rosilicie Ochoa BoghR
    Senator
    Bill Author
    Profile
    Juan AlanisR
    Assemblymember
    Bill Author
    Profile
    Kate SanchezR
    Assemblymember
    Bill Author
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Carl DeMaioR
    Assemblymember
    Bill Author
    Profile
    Christopher CabaldonD
    Senator
    Committee Member
    Profile
    Laura RichardsonD
    Senator
    Committee Member
    Profile
    Suzette ValladaresR
    Senator
    Bill Author

    Similar Past Legislation

    Bill NumberTitleIntroduced DateStatusLink to Bill
    AB-53
    Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.
    December 2024
    Engrossed
    View Bill
    AB-46
    Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.
    December 2022
    Failed
    View Bill
    Personal income taxes: exclusion: uniformed services retirement pay: survivor benefit plan payments.
    January 2022
    Failed
    View Bill
    Showing 3 of 3 items
    Page 1 of 1

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Kelly Seyarto
    Kelly SeyartoR
    California State Senator
    Co-Authors
    Kate Sanchez
    Kate SanchezR
    California State Assembly Member
    Tom Lackey
    Tom LackeyR
    California State Assembly Member
    Carl DeMaio
    Carl DeMaioR
    California State Assembly Member
    Laurie Davies
    Laurie DaviesR
    California State Assembly Member
    Juan Alanis
    Juan AlanisR
    California State Assembly Member
    Brian Jones
    Brian JonesR
    California State Senator
    Suzette Valladares
    Suzette ValladaresR
    California State Senator
    Rosilicie Ochoa Bogh
    Rosilicie Ochoa BoghR
    California State Senator
    Megan Dahle
    Megan DahleR
    California State Senator
    10% progression
    Bill has been formally introduced and read for the first time in its house of origin (12/2/2024)

    Latest Voting History

    View History
    May 12, 2025
    PASS
    Senate Committee
    Senate Appropriations Hearing
    AyesNoesNVRTotalResult
    7007PASS

    Key Takeaways

    • 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.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Kelly Seyarto
    Kelly SeyartoR
    California State Senator
    Co-Authors
    Kate Sanchez
    Kate SanchezR
    California State Assembly Member
    Tom Lackey
    Tom LackeyR
    California State Assembly Member
    Carl DeMaio
    Carl DeMaioR
    California State Assembly Member
    Laurie Davies
    Laurie DaviesR
    California State Assembly Member
    Juan Alanis
    Juan AlanisR
    California State Assembly Member
    Brian Jones
    Brian JonesR
    California State Senator
    Suzette Valladares
    Suzette ValladaresR
    California State Senator
    Rosilicie Ochoa Bogh
    Rosilicie Ochoa BoghR
    California State Senator
    Megan Dahle
    Megan DahleR
    California State Senator

    Summary

    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.

    10% progression
    Bill has been formally introduced and read for the first time in its house of origin (12/2/2024)

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Appropriations
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Appropriations
    Hearing has not been scheduled yet
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Placed on suspense file
    Senate Military and Veterans Affairs Hearing
    Senate Committee
    Senate Military and Veterans Affairs Hearing
    Do pass, but first be re-referred to the Committee on [Appropriations]
    Senate Revenue and Taxation Hearing
    Senate Committee
    Senate Revenue and Taxation Hearing
    Do pass, but first be re-referred to the Committee on [Military and Veterans Affairs]
    Introduced
    Senate Floor
    Introduced
    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    Latest Voting History

    View History
    May 12, 2025
    PASS
    Senate Committee
    Senate Appropriations Hearing
    AyesNoesNVRTotalResult
    7007PASS

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Brian JonesR
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tom LackeyR
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Megan DahleR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 15 row(s) selected.
    Page 1 of 3
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Brian JonesR
    Senator
    Bill Author
    Profile
    Tom LackeyR
    Assemblymember
    Bill Author
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Megan DahleR
    Senator
    Committee Member
    Profile
    Laurie DaviesR
    Assemblymember
    Bill Author
    Profile
    Kelly SeyartoR
    Senator
    Bill Author
    Profile
    Rosilicie Ochoa BoghR
    Senator
    Bill Author
    Profile
    Juan AlanisR
    Assemblymember
    Bill Author
    Profile
    Kate SanchezR
    Assemblymember
    Bill Author
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Carl DeMaioR
    Assemblymember
    Bill Author
    Profile
    Christopher CabaldonD
    Senator
    Committee Member
    Profile
    Laura RichardsonD
    Senator
    Committee Member
    Profile
    Suzette ValladaresR
    Senator
    Bill Author

    Similar Past Legislation

    Bill NumberTitleIntroduced DateStatusLink to Bill
    AB-53
    Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.
    December 2024
    Engrossed
    View Bill
    AB-46
    Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.
    December 2022
    Failed
    View Bill
    Personal income taxes: exclusion: uniformed services retirement pay: survivor benefit plan payments.
    January 2022
    Failed
    View Bill
    Showing 3 of 3 items
    Page 1 of 1